Financing Entrepreneurship

What is Entrepreneurial Finance?

In any form of entrepreneurship, cash is needed to fuel growth, the world of entrepreneurial finance is about where that cash has come from and what it is used for.

Watch this first as the basis for all of entrepreneurial finance

Different types of Entrepreneurial Finance

Cash and Risk are the root of all of entrepreneurial finance, understanding this is critical to everything else

Bootstrapping

Bootstrapping is when a businesses cash for growth comes from it's earnt profit. It is also common for bootstrapped businesses to raise small amounts of capital from other sources at the start but this is not a bootstrapped businesses finance strategy. Their strategy is to grow as fast or as slow as their cash (profit) will allow.

Angel Investment

Angel investors are high net worth individuals who make investment decisions with their own money

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VC 101: The Angel Investor's Guide to Startup Investing

The world is so much more convenient today than it was at the turn of the century. No need to leave the house to shop for groceries, or step off the curb to hail a cab. There's an app for that. Running out of paper towels? Place an Instacart order.

fundersclub.com

VC 101: The Angel Investor's Guide to Startup Investing

A great examination of the risks and rewards of angel investing

Venture Capital

Venture Capital (VC) refers to an organisation that has been set up for the purpose of investing money. A limited partner (LP), is the entity or person who gives a VC money to invest on their behalf and then a general partner (GP) is the person who manages the VC fund and decides who to invest in.

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What Blackbird Is Looking For In 2017

This post is for founders looking for investment from Blackbird. We want Blackbird's process to be simple and transparent so that we can get to know Australia's most ambitious founders at the earliest stage. Since 2012, we've invested in 35 companies. We have learned a lot. Here is where we stand today.

blog.blackbird.vc

What are Australian VC's looking for? Read this for one perspective

Equity Crowdfunding

Equity crowdfunding is when you raise finance via smaller contributions from many people. It is a recent addition to the Australian eco-system and is still being developed but has potential to play a large role.

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One of the leading equity crowdfunding platforms in Australia was founded by USYD Alumni

Crowdfunding Australia & New Zealand | Equitise

Equity crowdfunding is just one part of the Equitise picture. As long as you're 18 or over, you've got options for how to invest. The path you choose depends on what you're after and if you're a Retail or Wholesale Investor.

equitise.com

Crowdfunding Australia & New Zealand | Equitise

Lots of good information about equity crowdfunding here

Some tips on equity crowdfunding

Make sure that crowdfunding is the best way to raise money, could it be easier and cheaper to raise it straight from family and friends?
Don't underestimate the costs (video production, COGS, advertising, commission, etc)
Small crowdfunding campaigns are almost entirely funded by friends and family (75%)
Crowdfunding generally only works for B2C companies

Important Calculations in Entrepreneurial Finance

Fixed and variable costs

Watch this to understand fixed and variable costs

Contribution and breakeven margin

If you understand fixed and variable costs, watch this to understand contribution and breakeven

Cost to acquire and lifetime value

Watch this to understand cost to acquire and lifetime value

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For those who are interested even more information about this topic is here

This is a great playlist of videos covering income statements, cash flows, budgets, capitalisation table and forecasting.

captable.io

For those who want to go and build out cap table scenarios and simulations