my startup stories with a guideline to raise money for your startup
TRANSCRIPT
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
IntroductionAgenda
1. Me and my startup experience
2. Funding for startups
3. Milestone-based funding
www.groosman.info
IntroductionAgenda
1. Me and my startup experience
2. Funding for startups
3. www.MilestoneBasedFunding.com
www.groosman.info
IntroductionBenno 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
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IntroductionYou?
• Entrepreneur, policy maker, investor, other?
•What do you want to learn in this today?
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• My startup experience pic/slide
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
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1. My startup experienceHelping disabled and elderly incontinent people
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1. My startup experience Some key figures
• €1.400.000,- total funding
• 3 products, 3 international patents
• 7 large institutional customers
• ~6 fulltime employees + someparttimers and interns
• Assets sold to Australian company
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1. My startup experienceAwards and recognition for Salusion
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• Funding for startups slide
2. Funding for startups Startup financing cycle (theory, not my work)
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2. Funding for startupsStage and type of money (theory, not my work)
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2. Funding for startupsOther funding sources
•Where can you get money for your startup?
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2. Funding for startupsA 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
2. Funding for startupsHow many shares do you want to keep?
• Do you want to own 100% of a small pie?
• Or a part of a huge pie?
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2. Funding for startupsHow 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 don’t 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.
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3. Milestone-based fundingFunding result Salusion
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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
3. Milestone-based fundingStep by step
• Define the milestones in your startup plan
• Determine the amount of money you need toreach each milestone
• Match milestones with available funding sources
• Can you combine the milestones for funding?
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3. Milestone-based fundingQuick Sheet
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Download at:
www.milestonebasedfunding.com
3. Milestone-based fundingBenefits
• It’s 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
• It’s 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
ClosingWrapup
• Failure is not the end, it’s a learning experience with anopportunity 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 allinvestors/financers
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ClosingOrange Grove promotion
• Go to www.milestonebasedfunding.com
• Fill in the template
• Email me the template at [email protected]
• I’ll give you quick feedback by email or Skype
• I do this for maximum 10 cases: first come, first served!
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Thanks for your attention!Please feel free to contact me
Benno Groosman MScBA
Phone: +31 6 1253 2039
Email: [email protected]
Website: www.groosman.info
Twitter: www.twitter.com/Benno_Groosman
Slideshare: www.slideshare.net/benno_groosman