My startup stories with a guideline to raise money for your startup
1 like830 views
From my startup experience to a blueprint for raising capital. Introducing milestone-based funding with a quick sheet to apply it yourself.
My startup stories with a guideline to raise money for your startup
- 1. My startup story with a guideline on how to raise money for your startup with an introduction on milestone-based funding Benno Groosman MScBA www.groosman.info July 23, 2015 Orange Grove in Athens
- 3. Introduction Agenda 1. Me and my startup experience 2. Funding for startups 3. Milestone-based funding www.groosman.info
- 4. Introduction Agenda 1. Me and my startup experience 2. Funding for startups 3. www.MilestoneBasedFunding.com www.groosman.info
- 5. Introduction Benno Groosman MScBA MSc Entrepreneurship & New Business Venturing 10 years entrepreneur Involved in and founder of multiple startups Experience in multiple incubators and accelerators Award winning health care company with 3 international patents and multiple products, 1.4M funding and a bankruptcy! Now: Director Base pre-incubation programme at Maastricht University Cofounder Surge-on Medical: patented innovations for (knee) surgery www.groosman.info
- 6. Introduction You? Entrepreneur, policy maker, investor, other? What do you want to learn in this today? www.groosman.info
- 7. My startup experience pic/slide
- 8. Over 30% of replacements of incontinency diapers in nursing homes is not at the right moment. This leads to leakages and unnecessary replacements. 1. My startup experience how I started in the Netherlands www.groosman.info
- 9. 1. My startup experience The solution www.groosman.info
- 10. 1. My startup experience Helping disabled and elderly incontinent people www.groosman.info
- 11. 1. My startup experience Some key figures 1.400.000,- total funding 3 products, 3 international patents 7 large institutional customers ~6 fulltime employees + some parttimers and interns Assets sold to Australian company www.groosman.info
- 12. 1. My startup experience Awards and recognition for Salusion www.groosman.info
- 13. 1. My startup experience Christmas 2013: bankruptcy www.groosman.info
- 15. 1. My startup experience Now: cofounder Surge-on Medi www.groosman.info
- 16. 1. My startup experience Now: creator & director Base www.groosman.info
- 17. Funding for startups slide
- 18. 2. Funding for startups Startup financing cycle (theory, not my work) www.groosman.info
- 19. 2. Funding for startups Stage and type of money (theory, not my work) www.groosman.info
- 20. 2. Funding for startups Other funding sources Where can you get money for your startup? www.groosman.info
- 21. 2. Funding for startups A selection from early to late stage Friends, family and fools Governments, universities, larger companies Crowdfunding and crowd-investing Business angels (informal investors) Launching customers Venture capital funds Private equity / IPO / exit and more www.groosman.info
- 22. 2. Funding for startups How many shares do you want to keep? Do you want to own 100% of a small pie? Or a part of a huge pie? www.groosman.info
- 23. 2. Funding for startups How much money do you ask for? Ask the money that you really need to reach your next milestone, not too little, and about 15-25% extra for unforeseen expenses. Funds dont like to pay for marketing, big office space and high salaries. They want to build the business by investing in prototypes, production, sales, patents, strategic positions etc. Use the money to grow the value of your company. www.groosman.info
- 25. 3. Milestone-based funding Funding result Salusion www.groosman.info 600 Government guaranteed bank loan 75 Subordinated bank loan 450 Ministry of Health development contract 20 Subordinated loan 25 Award money 95 Government grants 100 Soft preseed loan 10 Founders
- 26. 3. Milestone-based funding Step by step Define the milestones in your startup plan Determine the amount of money you need to reach each milestone Match milestones with available funding sources Can you combine the milestones for funding? www.groosman.info
- 27. 3. Milestone-based funding Quick Sheet www.groosman.info
- 28. 3. Milestone-based funding Quick Sheet www.groosman.info Download at: www.milestonebasedfunding.com
- 29. 3. Milestone-based funding An example www.groosman.info
- 30. 3. Milestone-based funding Benefits Its easier to get milestones funded than activities or the total costs of years in the future Milestones make you and your financers focus on the big picture, instead of daily operations Its possible to secure the funding of different milestones by combining the commitment of different (types of) funding sources in advance: you could capture these in one investment contract (with options) www.groosman.info
- 32. Closing Wrapup Failure is not the end, its a learning experience with an opportunity to do it even better the next time Defining clear milestones makes it easier to get funding for your startup Being passionate, visionary, realistic, transparant and hardworking are qualities that are appreciated by all investors/financers www.groosman.info
- 33. Closing Orange Grove promotion Go to www.milestonebasedfunding.com Fill in the template Email me the template at benno@groosman.info Ill give you quick feedback by email or Skype I do this for maximum 10 cases: first come, first served! www.groosman.info
- 34. 6. Questions and discussion www.groosman.info
- 35. Thanks for your attention! Please feel free to contact me Benno Groosman MScBA Phone: +31 6 1253 2039 Email: benno@groosman.info Website: www.groosman.info Twitter: www.twitter.com/Benno_Groosman 際際滷share: www.slideshare.net/benno_groosman