TU-E4100 - Startup Experience D, 08.09.2020-11.12.2020
This course space end date is set to 11.12.2020 Search Courses: TU-E4100
Team Assignment - Financing, Budgeting & Cap Table - Deadline 13.10.2020
Budget and Cap Table
Create a cashflow budget and cap table for your team. Please keep in mind the following when drafting your cashflow budget:
1) Estimate how long it will take for you to bring your MVP to a customer and start generating revenue.
2) Estimate revenue growth through the first 12 months. (For example, number of customers x purchase price, based on estimates of customer base growth month on month.)
3) Calculate minimum expenses to get to revenue, including fixed expenses (salaries, salary expenses, office space) and liquid expenses (marketing, manufacturing, travel etc.).
4) Find out about potential grants from Business Finland, TE-Keskus and other authorities and foundations in Finland. Google “startup grants finland” for more info. Add realistic grant opportunities to your budget.
5) Fill in the rest of the income needs by estimating investment opportunities (FFF, angel, seed) and possible bank loans depending on your teams’ capabilities and collateral.
Please keep in mind the following when drafting your cap table:
1) Create enough shares to be able to accommodate for future owners (investors, advisors, employees etc.).
2) Split initial shares among founders based on your discussion. Full time / part time / investor / advisor status should be reflected in ownership.
3) If you have estimated need for investors in your budgeting, add realistic shares for each investor and the type of shares.
4) Create a sufficiently large Employee Stock Option Pool (ESOP) to incentivize future employees.
The exercise will be graded based on the realism of your assumptions and the coherence of the information you have provided for the budget and the cap table. In other words, if you have full time and part time founders, this should be reflected in salaries, or if you have budgeted investment funds, this should be reflected in cap table, etc.
Please submit with this naming format: Group No._Assignment
- 3 November 2020, 11:29 AM
- 3 November 2020, 11:29 AM
- 3 November 2020, 11:29 AM
- 3 November 2020, 11:29 AM