Practical funding masterclass: a series of 5 presentations by Benno Groosman. Session 1: Introduction to funding language + business planning. Session 2: Determining funding need + milestone-based funding. Session 3: Building your financial investment plan. Session 4: Investor readiness. Session 5: Advanced funding and wrap-up.

1. SESSION TWO: MILESTONE
FUNDING & FUNDING NEED
Benno Groosman MScBA – www.groosman.info –Athens, February 24 –

2. MASTERCLASS FUNDING FOR
INNOVATIVE STARTUPS
Benno Groosman MScBA – www.groosman.info –Athens, February 16 – OrangeGrove

3. MASTERCLASS SCHEDULE
 Session 1: Introduction to funding language + business
planning;
 Session 2: Determining funding need + milestone-based
funding;
 Session 3: Building your financial investment plan;
 Session 4: Investor readiness;
 Session 5: Advanced funding and wrap-up.
www.groosman.infoFUNDING MASTERCLASS

4. INTHIS PRESENTATION
Do you need investor funding?
Value-adding activities
Milestone-based funding
Your funding need and match with stages
What’s next?
www.groosman.infoFUNDING MASTERCLASS

5. DOYOU NEED INVESTOR FUNDING?
First, get money from:
 Selling your test product;
 Make customers pay in advance (or sell MVP);
 Use government subsidies and grants;
 Consultancy (but don’t loose your focus!);
 (Ask to) pay your suppliers later.
...TO BE ABLETO MAKE A BETTER DEAL.
www.groosman.infoFUNDING MASTERCLASS

6. VALUE-ADDING ACTIVITIES
Investors 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 all funding to increase the valuation of your
venture.
www.groosman.infoFUNDING MASTERCLASS

7. VALUE-ADDING ACTIVITIES/RESULTS
 Work on prototype (R&D)
 Direct customer acquisition
 Successful patent applications
 Strategic partnerships
 Improve product/market fit
 Clear go-to-market strategy
 Improve your team
 … and more
www.groosman.infoFUNDING MASTERCLASS

8. VALUE-ADDING ACTIVITIES/RESULTS
Not: beautiful logo, business cards and website
Not: a great CRM system without customers
Not: adding more and more features to product
Not: visiting events or exhibitions without a clear
goal and result
Not: Facebook likes or blog readers you didn’t
monetize
www.groosman.infoFUNDING MASTERCLASS

9. VALUE-ADDING ACTIVITIES/RESULTS
What shouldYOU
do to add value to
your startup?
www.groosman.infoFUNDING MASTERCLASS

10. FUNDING NEED AND STARTUP STAGE
www.groosman.infoFUNDING MASTERCLASS

11. FUNDING FROM EARLYTO LATER 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.infoFUNDING MASTERCLASS

12. FUNDING NEED AND STARTUP STAGE
Do you know what
source of money fits
your startup stage?
www.groosman.infoFUNDING MASTERCLASS

13. MY DEFINITION: MILESTONE
A milestone is the concrete
achievement of a significant step in
your venture planning, which adds
financial value to your venture.
www.groosman.infoFUNDING MASTERCLASS

14. MILESTONE-BASED FUNDING
Define the milestones in your startup plan
Determine the amount of money and time
you need to reach each milestone
Match milestones with available funding
sources
Can you combine the milestones for
funding?
www.groosman.infoFUNDING MASTERCLASS

15. MILESTONE-BASED FUNDING QUICK SHEET
www.groosman.infoFUNDING MASTERCLASS

16. MILESTONE-BASED FUNDING QUICK SHEET
Download at:
www.groosman.info/#!funding/cbvu
www.groosman.infoFUNDING MASTERCLASS

17. www.groosman.infoFUNDING MASTERCLASS

18. MILESTONE-BASED FUNDING QUICK SHEET
Take 10 minutes to fill
in the sheet and 15
minutes to discuss
with your neighbor. www.groosman.infoFUNDING MASTERCLASS

19. MILESTONE-BASED FUNDING
It’s easier to get milestones funded than activities or the
total costs for 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.infoFUNDING MASTERCLASS

20. FUNDING NEED
Ask the money that you really need,
not too little,
and about 10-20% extra for unforeseen expenses,
to achieve the milestone(s) you are aiming for.
www.groosman.infoFUNDING MASTERCLASS

21. SNEAK PREVIEW NEXT SESSION
In order to raise money you have to show financial
projections for the future
For these projections you have to make estimates
of costs and revenues
In new ventures these estimates are assumptions
The number is not the most important, the
assumptions you made to get to this number is!
www.groosman.infoFUNDING MASTERCLASS

22. FOLLOW ME
Benno Groosman MScBA
Experienced startup entrepreneur
www.groosman.info
www.groosman.infoFUNDING MASTERCLASS