before we get started on how to get funded...validation lean startup startup development phases –...
TRANSCRIPT
Before we get started on How to get Funded ?
What is a startup ?
Risk
Return / Reward
“Startup is an entrepreneurial team
with innovative idea and target to
grow fast with scalable business
model”
Startup is a business in the form of a company, a
partnership or temporary organization designed to
search for a repeatable and scalable business
model designed to grow fast in a big and/or fast
growing market. – Steve Blank
Growth
Investors don’t invest in ideas- Investors are looking for:
Market
Opportunity
Innovation /
uniqueness
The Team will
make it happen
About Fundability
”It is relatively easy to raise
money for a company that is
fundable. It is close to
impossible to raise funding to a
company that is considered a
non-fundable one.”
-Mika Marjalaakso,
Tough Love Angel
Picture: VisitHelsinki
6
Team
Product
Market fit
The Team
The Team should have enough skills and
passion to execute everything planned and
unplanned.
Planning is 50%, execution is 60%
The Product
Validate early with potential customers,
start with a feature.
Product shows the investor that the team can
execute more than powerpoint slides.
The Market Fit
Funding options in different stagesStartup-grant (to entrepreneur) :
http://www.te-
services.fi/te/en/employers/for_e
ntrepreneurs/services_new_entr
epreneurs/startup_grant/index.ht
ml
Angel funding:
http://etula.fi/pdfs/opas_enkelisij
oituksen_hakemiseen.pdf
TEMPO:
https://www.businessfinland.fi/en
/for-finnish-
customers/services/funding/start
up/tempo-funding/
Finnvera loan:
https://finnvera.fi/eng/Products/L
oans
SME Instrument I & II:
https://ec.europa.eu/programme
s/horizon2020/en/h2020-
section/sme-instrument
RE
VE
NU
E
TIME
Mezzanine
1st
2nd
3rd
IPO
Early Stage Later Stage
VCs, Acquisition, Mergers & Startegic AllinacesFFF, Angels
Seed CapitalPublic
Market
Death Valley Break Even
Business Finland
(Former TEKES)
Tempo fund
Bank loan guaranteed by Finnvera
or from Finnvera directly
Business Finland
R&D loan
SME Instruments I & II
Business Finland
YIC (in finn NIY)
0 - years
Secondary
Offering
Business Model / Market FitProduct / Market FitVision / Founders Fit
Problem / Solution Fit
Minimum Viable
Product
Validate / Iterate
(or pivot)
Pre-seed 1. Revenue from
customers in all
stages
2. Basic seed money from
co-founders
3. Startup grant Te-
toimisto
4. Innovation voucher
5. Tempo Business
Finland
5. Bank and Finnvera
loans and guaranteees
Seed
1. Business Finland R&D
2. Angel rounds
3. Early stage funds
4. Horizon 2020
SME Instrument Phase
5. Equity/product
Crowdfunding
Start up Venture Capital1. Early VC
2. Seed Funds
3. Business Finland YIC
5. Loans from insititutions
6. EU Horizon 2020 SME
instrument phase II
7. Early IPO (First North)
VALIDATION
Lean Startup
Startup Development Phases –
From idea to business and team to organization.
Version 3.0 - www.startupcommons.org
FORMATION
Mission > Vision > Strategy
GROWTH
Scale Up
● Co-founder team formation
● What, to whom? & Why and how?
Establish &
Strengthen
-2 -1 30 21
1. Angel rounds
2. Business Finland R&D
3. Early stage funds
4. Business Finland YIC
5. Equity/product
crowdfunding
Bootstrapping >>
Business Finland (Tekes) Fundingfor start ups
How to get started with Business Finland (Tekes)
https://www.businessfinland.fi/en/for-
finnish-
customers/services/funding/startup/in-
brief/
TEMPO - Test your concept
Investigate the market www.tekes.fi/tempo
Investment study by Etula
