Le fonti di finanziamento e gli attori del mercato finanziario per startup

Obiettivi della lezione

La lezione mira a far comprendere allo studente quali sono le principali forme di finanziamento per una start up. In particolare attraverso la testimonianza del Dott. Zilli, sales manager presso una multinazionale americana nel settore ICT e business coach di start up ci si sofferma sulle diverse fonti di finanziamento offerte dal mercato.

Le fonti di finanziamento

Over 90% of successful tech companies are financed in the same way:

• Startup funding from Friends and Family investors
• Crowdfunding
• Angel Investors and Angel Funds, followed by either
• Venture Capital, or
• Public Venture Capital

Friends and Family investors

Friends and family round is typically the first capital funders raise when the"business" is little more than an idea. Such rounds are typically between €10,000 and €50,000. Raise money from people who can afford to lose it and set clear expectations! Be upfront about risks and put the rules behind the investment in writing.

Vantaggi e svantaggi degli investitori Friends and Family

Vantaggi

• Is the early lifeblood of any successful companies
• Can be a good way to share potential future success with closest persons
• Can choose well-connected investors like lawyers, executives, or fellow entrepreneurs

Svantaggi:

• You risk lost friends and strained relationships with relatives.
• It can also be a source of major tension.
• Don't get too informal about the business relationship
• Be fair and respect the generosity of your investors

Prestiti

A Loan provides cash and expects repayment over a specific schedule (X amount per month) of the amount you borrow plus interest percentage. A Line of credit is a more flexible loan where the entrepreneur borrows cash for as long as he needs and only pays interest on the period the money was borrowed. It will serve when you will have unexpected shortage of cash.

Vantaggi dei prestiti

• Banks are everywhere
• You keep control of your business
• Keeps you tied to the business.
• Might be only sources needed since startup costs are decreasing
• Some founders lend the money to the startup to return when has enough revenues

Svantaggi dei prestiti

• They want you to pay it back ... with interest!
• Usually not even an option for start-ups
• Can be inflexible and onerous when revenue projections are not met
• Can be a severe restriction of cash flow
• Banks are very conservative and will require assets to guarantee the loan
• Too much debt can debilitate your company.

Partnership strategica

Alliances with large companies who see value in your technology and are willing to fund further development. Offers money, expertise, testing facilities, etc. in exchange for some ownership of the technology aimed at improving the large company's current products or meet future market demand.

Vantaggi della partnership strategica

• Can generally retain majority ownership and control
• Large company is often interested in acquiring the company
• Simpler due-diligence process, more focused on technology than financial performance
• Take advantage of large company's market access, customer relationships, etc.

Svantaggi della partnership strategica

• Large companies often find it difficult to work with start-ups
• Large companies are slow ... Small company has no control over strategic direction of large company.

Gli investitori privati

Crowdfunding

An entrepreneur can attract a 'crowd' of people, each of whom takes a small stake in a business idea (equity C.) or alternatively a reward (reward C.), by contributing towards an online funding target. Using services like Kickstarter and IndieGogo, the entrepreneur build web pages that host information, photos and videos on the project they're looking to get funded. It's useful when investors may be hesitant to invest in an unproven idea.

Vantaggi del crowdfunding

• Crowdfunding minimizes the tedious fundraising process (and its associated time and cost)
• Entrepreneurs spend more time on the business
• Scrappy entrepreneurs from humble means, are no longer disadvantaged when trying to launch companies from scratch.

Svantaggi del crowdfunding

• Without facing investors entrepreneurs lose the truly valuable step of convincing others
• Collect less feedback from critics so their early business models aren't honed as well.

Acceleratori e incubatori

Accelerators & incubators are a good path to capital and an innovative investment vehicles. Many of them have potential capital to invest, or links to potential funding sources and they typically take a small piece of equity in exchange. Often offer access to services (accountants, lawyers, coworking spaces, mentorship, coaching and networking connections, practical training etc) to help the startup get from idea to product and beyond.

Vantaggi di acceleratori e incubatori

• Access to a potential options of capital choices
• Intangible benefits including mentorship, expertise and networking.

Svantaggi di acceleratori e incubatori

• Constant mentorship and networking can damage your focus during crucial early stages.
• Think hard about whether your business could benefit from an incubator.
• Don't move in to the first you find: choose the one with the services that are the best fit.

Business Angel

It's a form of venture capital funding where private individuals invest in companies in exchange for a share of their equity. Most BAs invest between €10,000 and €500,000 usually in start-ups to fund activities such as product development or market expansion. BAs can make investment decisions quickly if you have a good business plan before they commit. Many specialize in particular industries, becoming a valuable source of expert knowledge and mentoring.

Vantaggi dei Business Angel

• BAs are free to make investment decisions quickly
• no need for collateral - i.e. personal assets
• access to your investor's sector knowledge and contacts
• access to BA mentoring or management skills
• no repayments or interest

Svantaggi dei Business Angel

• not suitable for investments below 10,000€ or more than €500,000
• giving up a share of your business
• less structural support available from a BA than from an investing company

Venture Capital

Venture Capital (VC) is the source of equity funding for many startups and also larger businesses looking for their next stage of growth. Should only be looked at when you need millions and when you have exhausted all other sources of funding. VCs' look for high returns in a relatively short time frame to exit, usually 5 years. You have to consider some critical areas when you start talking to VCs.

1. Have a Unique Idea With High Barriers to Entry
2. Develop a Compelling Value Proposition
3. Demonstrate Market Traction
4. Assemble the Perfect Team

Vantaggi del Venture Capital

• Growth! Take advantage of the VC's network of partners, customers, management, talent, etc.

Svantaggi del Venture Capital

• Hard to find, hard to convince
• High expectations, lots of "Due Diligence"
• Generally you have to give up majority ownership

Il mercato

Initial Public Offering (IPO)

Initial Public Offerings are used when companies have profitable operations, management stability, and strong demand for their products or services. This generally happen when companies have been in business for several years. Selling stock to the public not only offers liquidity to company founders, but it's also "a signal to the world that the business has made it." Getting there can be a long and challenging journey, especially for the CEO and CFO of an organization.

Vantaggi dell'Initial Public Offering (IPO)

• Going public can help a company attract talent,
• Give currency to grow and acquire other companies and generally raise its profile.

Svantaggi dell'Initial Public Offering (IPO)

• Going public include greater reporting and disclosure requirements and can publicly reveal details
• For management often means loss of control and intense pressure on quarterly earnings, which can detract from long-term plans.
• IPOs are expensive, fees and expenses can total as much as 25 percent of the deal.