1. Startup Finance
VentureFin

2. The Five Elements Balance Sheet + Capitalization
Income Statement + Financial Statement
Business Model
Budgeting
Monitoring

3. Foundation Balance Sheet Assets= Liabilities + Shareholder’s Equity
Current Assets
Long Term Assets
Cash
Equipment
Accounts Receivable
Property
Inventory
Liabilities
Short Term
Long Term
Payables
Debt
Salaries

4. Foundation Shareholder’s Equity Common Stock
Stock owned by founders and employees
Stock Options
Options offered to employees that may be partners
Warrants
An option to buy stock in the future at a fixed price
Preferred Stock
Liquidity Preference
Convertible Notes
A debt instrument that is convertible to equity

5. Income Statement
Revenue
Cost of Goods Sold
Gross Profit
Gross Profit Margin
Operating Expenses
Operating Profit

6. Income Statement Operating Expenses Revenue 200,000 CGS 100,000
Gross Profit ,000
Gross Profit Margin %
Operating Expenses
R&D
Marketing
General Expenses
Gross Profit-Operating Expenses=Net Income

7. Cash flow Net Income Changes in AR(+/-) Changes in AP(+/-)
Cash Flow From Operations - OP
Capex
FN- Financial Activities (+/- Debt & Equity)
Net Cash=Net Income – Capex +/- FN

8. Business Model Target Customers Competitive Advantage Sales Strategy
Price Strategy
Cost Structure
Marketing Strategy
Value Proposition

9. Business Model Business Model Formula How to derive Importance
Adjusting

10. Budgeting Operating Budget
Identify key drivers for expenses and revenues
12 month report
Milestone Budget
Product Spec
Customer Validation
Beta Version
Final Test

11. Financial Budgeting Long term financial projections
5 Year financial forecast
Business Model Formula
Testing your forecast

12. Monitoring Monthly Financial Reports Management Dashboard Cash
Product Development
Marketing
Sales
Operations