Raising money and going bankrupt

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?

http://www.coaching-startup.com/accompagnement/

http://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

?





# Reason 2 : A poor management of growth

• The working capital is out of control

• Poor internal processes





# Reason 3 : Non diversified revenues

• 1 customer = 80 % of the turnover





# 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





# 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






# 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





# 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





# Reason 8 : going against the flow

• You follow too many indicators or the wrong type of indicator





# Reason 9 : lack of anticipation

• Keep an eye on the market to direct your actions towards promising areas.





# 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




GROW Sources

Sources :

• Paul Graham

• Business Angel France

• Coactiv

• Coaching Startup




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

http://www.coaching-startup.com/contact/








https://www.facebook.com/coachingstartupacademy

https://twitter.com/Startup_team






Date post:	14-Jul-2015
Category:	Business
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