285B Week 6 Lecture 1 TD

285B Week 6 Lecture 1 TD - ENG 185B/285B New Venture...

Info iconThis preview shows pages 1–8. Sign up to view the full content.

View Full Document Right Arrow Icon
Click to edit Master subtitle style ENG 185B/285B New Venture Creation: Entrepreneurship Finance, Funding and Valuation
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ENGR185B/285B 22 Today’s Roadmap Assignment 7 Due Kawasaki - chapters 7 & 8 infoChachkie Readings Finance Funding Valuation
Background image of page 2
ENGR185B/285B 33 Mark Suster Quiz Brief quiz to reward those who come to this Wed’s class
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
ENGR185B/285B 44 O’Connor – Chapter 5 Getting The Never ‘need’ the money (or at least do not show it) Raise 2x – 3x the $ you ‘think’ you need Seldom happens b/c entrepreneurs are: too greedy & optimistic You have to fund as much as possible Very ‘expensive’ to take $ out of your startup in early stages Corporate investors JG: Must clearly separate partnership from funding VC’s are motivated by greed; understand their 4 questions
Background image of page 4
Click to edit Master subtitle style Finance Think Big – spend Small Be prepared to sleep like a baby… ….waking up every two- hours in tears Negotiate everything You are the little guy – never pay ‘retail’ Instill frugality in your organization “Liquidator Larry”; despite $30M in bank Lead by Example; where known ROI exists (not furniture) Employees should be proud to do more with less Reward those who spend the co’s $ like it is their own
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Click to edit Master subtitle style Finance Know your financial model assumptions inside & out Track actual results versus your budget religiously Cash is King…and Queen…and Duke…and Czar… There is no excuse for running out of money If you do, you should fail – its Darwinian Always have at least 1 year of working capital in the bank Most difficult time to raise money is when you need it You can hire a CPA to create you financial statements
Background image of page 6
Click to edit Master subtitle style Finance Sophistication of financials depends on complexity of your business and type of investors sought Ideal Approach Create an Income Statement, Balance Sheet & Statement of Cash Flows… Ideals can sometimes be expensive… Shortcut for the busy entrepreneur: 1: Estimate monthly revenue 2: Estimate monthly expenses 3: Result is monthly cash flow Checkbook analysis may be good enough to initially plan & run your business
Background image of page 7

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 8
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

Page1 / 31

285B Week 6 Lecture 1 TD - ENG 185B/285B New Venture...

This preview shows document pages 1 - 8. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online