raising money and going bankrupt
TRANSCRIPT
1 www.coaching-startup.com
GROW BUSINESS DEVELOPMENT & FINANCIAL SUPPORT
You have raised money but …
… after a couple of months …
you’re are going bankrupt !
WHY?
2 www.coaching-startup.com
GROW How did it happen ?
# Reason 1 : bad money
• You have raised the wrong amount
• A too high valuation for a first and second round • An unhealthy financial structure
?
3 www.coaching-startup.com
GROW How did it happen ?
# Reason 2 : A poor management of growth
• The working capital is out of control
• Poor internal processes
4 www.coaching-startup.com
GROW How did it happen ?
# Reason 3 : Non diversified revenues
• 1 customer = 80 % of the turnover
5 www.coaching-startup.com
GROW How did it happen ?
# Reason 4 : a risky financial structure • A too important « Cash burn »
• Excessive fixed costs. A sudden drop in the activity has a significant decrease in the level of
cash
• A wrong human resource strategy
6 www.coaching-startup.com
GROW How did it happen ?
# Reason 5 : the next fundraising round is not prepared • You realize you need to raise money only 2 months before the cash crunch
• No tools to make financial forecasts
7 www.coaching-startup.com
GROW How did it happen ?
# Reason 6 : a non-cohesive team
• No common projects between managers and employers
• A poor internal communication
• A fear has appeared after the first dismissal
• Founders have not he same vision anymore
8 www.coaching-startup.com
GROW How did it happen ?
# Reason 7 : following the business plan at all costs
• Do not follow your business plan only to achieve the objectives that have been enacted
• Your last data are more important than the spreadsheet of your Business Plan
“The Only thing that we know about financial prediction of startups is that 100% of them are Wrong"
Brad Feld, Co-founder, Foundry Group
9 www.coaching-startup.com
GROW How did it happen ?
# Reason 8 : going against the flow
• You follow too many indicators or the wrong type of indicator
10 www.coaching-startup.com
GROW How did it happen ?
# Reason 9 : lack of anticipation
• Keep an eye on the market to direct your actions towards promising areas.
11 www.coaching-startup.com
GROW How did it happen ?
# Reason 10 : Bureaucratic Structure • The structure must be able to evolve as soon as a change of direction is required
• Decisions must be made quickly
12 www.coaching-startup.com
GROW Sources
Sources :
• Paul Graham
• Business Angel France
• Coactiv
• Coaching Startup
13 www.coaching-startup.com
GROW Contact us
Route de Saint-Julien 184, 1228 – Plan-les-Ouates Genève – Suisse
www.Coaching-Startup.com
Follow us on
@Startup_Team Facebook.com/coachingstartupacademy