Anas notes Flashcards
Importance of prototype
- Multiple designs
- User validation
- Cost and time efficency
Types of prototype:
low fidelity- basic function, dont have to work
high fidelity- low cost, has basic working funtions
max financing needed
to get them out of the valley of death.
Runway
time company has to runn out of cash
Gross margin measures
profitability (rev-cogs)
BOTTOM UP
- use when?
- Cost
- revenue
- If data more precise
- add indivudual cost => operating cost
- single product revenue=> amount sold=> revenue
TOP DOWN
- use when?
- Cost
- revenue
- In first phase of new businesses
- Operating cost=> individual expenses
- market size=> market share
investor types:
- FFF
- Crowdfunding
- Business angels
- Venture capital
- Private equity
- Bootstrap
Business angels:
Individuals invest their own money in startups
offering funds, mentorship and valuable industry connections.
Venture capital:
invest substantial amounts of money in high-growth startups in exchange for equity, aiming for significant returns upon the company’s success or exit.
Private equity:
large-scale funding to established companies looking to expand, restructure, or go private, often with a focus on long-term profitability.
Bootstrap:
Building a business using personal savings and operating revenue, avoiding external funding to maintain control and minimize debt
Cash Flow statement
1.operating
+ sales
- Cogs, marketing, salary, admin
2.Investment -
3.financing +
= how much u need
CAPitalization table is a…
spreadsheet or document that outlines the ownership structure of a company, detailing the equity ownership stakes of its shareholders
Cap table
Pre-money valuation €
investment need €
Post- money valuation €
Founders ownership %
Investor A %
Investor B %
….
option pool for future employees 10%
