Essentials of Startup Finance

Essentials of Startup Finance // BUSINESS 169

Taylor Davidson, Senior Associate, kbs+p Ventures

First session meets on Wednesday, June 8th from 8:00 pm to 9:30 pm. Second session meets on 6/15.

Session I (6/8): Finance Fundamentals for Entrepreneurs

Entrepreneurs often face a myriad of financial issues and questions, but don't have a background in economics or finance. Whether pitching to investors, making payroll, or understanding their business model, participants can use this session as a primer on the fundamental vocabulary, concepts, and frameworks required to understand the finance side of their business.

This session will be an introduction to the basic principles of finance. Topics to be covered include include unit economics, financial statements, capital structure, equity and debt, and relevant financial metrics and ratios. Prerequisites: None.

Session II (6/15): Financial Modeling for Entrepreneurs

Yes, financial models are always wrong. But it's important to create one anyway. Creating a financial model is less about being right or wrong, and more about going through the process of detailing how a business “works.” The result - a set of financial statements, key operational metrics, and a set of key drivers and assumptions - creates a map for to explore how tactical product, marketing, organizational, and strategic decisions impact a company’s profitability. Such a model will help determine key milestones, capital needs, and types of potential investors.

This session will focus on building financial models in Excel (or similar spreadsheet programs). Students will learn how to turn the business model from a mental to a financial model by  building out assumptions, costs, revenues, and financial statements using structured approaches. Students can bring their own financial model or start with a template Excel model to be provided during the class. Prerequisites: Finance Fundamentals for Entrepreneurs, or requisite knowledge. Students are expected to have a passing familiarity with Excel.

Taylor Davidson is a Senior Associate at kbs+p Ventures, the early-stage thematic investment arm of the advertising agency kbs+p. He is an advisor and mentor to a range of early-stage ventures and a mentor with Launch Pad Ignition (a New Orleans-based TechStars accelerator). Over 6,000 entrepreneurs have downloaded one of his template Excel financial models for startups available at UnstructuredVentures.com.

Use the hashtag #gastartupfinance to ask follow-up questions and continue the conversation.

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