Do you understand the numbers,
and what they are trying to tell you about your idea?
Bringing technologies into the market puts a significant amount of capital at risk that usually far exceeds the personal bank accounts of the entrepreneurs involved. Intrapreneurs, also, aren't given a blank check. Hence, ideas must raise capital. Anyone who has not been exposed to the return on investment view of commercialization often overvalues their early-stage idea, and can become frustrated with the inevitability of the fund raising process.
A simplified pro forma and a capitalization table are given in an interactive format. Teams play around with different assumptions and business models and witness the financial impact on their idea.
What's different? This is not textbook how-to-build, but rather provides insights into the soul of a pro forma and a capitalization table. In other words, what they mean, what effects what, and how financial estimates change with different commercialization assumptions and pathways forward.
Output: Deeper knowledge into early-stage idea financials.
A simplified pro forma and a capitalization table are given in an interactive format. Teams play around with different assumptions and business models and witness the financial impact on their idea.
What's different? This is not textbook how-to-build, but rather provides insights into the soul of a pro forma and a capitalization table. In other words, what they mean, what effects what, and how financial estimates change with different commercialization assumptions and pathways forward.
Output: Deeper knowledge into early-stage idea financials.
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Prelude pro forma |
Capitalization Table |
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Simplified profit & loss statement with a focus on just 7 critical numbers
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Model the financial exit of a successful idea after 5 investment tranches.
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Attendees will first be introduced to the Prelude pro forma: a quick-screening Profit & Loss projection that estimates any ideas Net-Present Value with only 7 key assumptions. By using pessimistic and realistic estimates, the tool highlights to what the idea's financial success is most sensitive; hence prioritizing deeper analysis and possibly rendering the idea, its development plan, or its operating business model. The effect of other common financial assumptions is shown by discussing and adjusting 8 more factors (like Cost of Capital, Income/Expense ramps, and Product life cycle).
Now poised with an outline of the required capital infusion, the basics of valuing early stage technology startups will be covered to make way for equity investments. Appropriate funding sources will be reviewed. The importance of using that funding to continuously build value will be emphasized in a slow-motion walk-through of a capitalization table for a brand new technology company flowing through a successful exit. The frameworks also apply to internal management funding rounds.
Attendees can bring their own ideas with preliminary financial assumptions, or can experiment with the tools using a provided set of data.
Who Hosts an Idea Financials Workshop? With no preparation by the host or attendees, this workshop is perfect as a stand-alone workshop or embedded into a larger curriculum or program that involves innovation management, technology commercialization, business development, concept-stage tools.
Target attendee: Anyone wishing to understand the soul of a pro forma and a capitalization table.
Contact time: 6-8 hours. Lectures (40%). Hands-on working sessions (40%). Report out & Discussions (20%).
Now poised with an outline of the required capital infusion, the basics of valuing early stage technology startups will be covered to make way for equity investments. Appropriate funding sources will be reviewed. The importance of using that funding to continuously build value will be emphasized in a slow-motion walk-through of a capitalization table for a brand new technology company flowing through a successful exit. The frameworks also apply to internal management funding rounds.
Attendees can bring their own ideas with preliminary financial assumptions, or can experiment with the tools using a provided set of data.
Who Hosts an Idea Financials Workshop? With no preparation by the host or attendees, this workshop is perfect as a stand-alone workshop or embedded into a larger curriculum or program that involves innovation management, technology commercialization, business development, concept-stage tools.
Target attendee: Anyone wishing to understand the soul of a pro forma and a capitalization table.
Contact time: 6-8 hours. Lectures (40%). Hands-on working sessions (40%). Report out & Discussions (20%).
Options:
- Divide out: Can be only prelude proforma (1-3 hours), or only Capitalization (1-3 hours).
- Real project working sessions: Rather than use the given scenarios, teams complete their own Prelude pro forma and Prelude cap-table and present back as to what insights these tools have provided. (This requires some preparation to ensure the base numbers are available for the teams to use.)
- Spread out for real input:
- After the workshop (1-2 weeks): Individuals (or teams) deploy the tools on real data of their own early-stage ideas, current development projects, or retrospectively analyze past projects.
- Part Two (1/2 to 1 day): Present and discuss how the financial analysis has impacted the ideas and the prioritization of next-step actions. And/or take the broader view and discuss insights into the existing new product development portfolio.
- After the workshop (1-2 weeks): Individuals (or teams) deploy the tools on real data of their own early-stage ideas, current development projects, or retrospectively analyze past projects.