Financials & Funding fundamentals
learn how to keep your finances in check + gain capital
April 25, 2018 - May 16, 2018
ABOUT CLASS SERIES
This course will help you understand crucial numbers that can make or break your business. Many entrepreneurs make the fundamental mistake of not paying attention to these numbers until it’s too late. Being able to analyze profits and costs, decipher financial statements, and fairly evaluate your company is a must for every entrepreneur at any stage. Knowing your numbers will not only add to your credibility but also significantly increase your chances of securing capital for your business. Learn how to extract meaningful insights from your company’s financials and use it to your advantage.
Unit economics are the direct revenues and costs associated with a particular business model expressed on a per unit basis. Unit economics looks at the direct revenues and costs associated with the most basic element of a company’s business model. From this data, investors will project how profitable the company may be (or not), and when it can expect to reach profitability.
The biggest determinant of your startup’s value are the market forces of the industry & sector in which it plays, which include the balance (or imbalance) between demand and supply of money, the recency and size of recent exits, the willingness for an investor to pay a premium to get into a deal, and the level of desperation of the entrepreneur looking for money.
Most of the startups on AngelList don’t get funded, just as most of the startups anywhere don’t get funded. A recent article from the Economist revealed that roughly 1% of startups on AngelList successfully hit their fundraising goal, and less than 1% of startups backed by VCs or Angels actually achieve a 10x exit. Gain investor insights on the financials that matter the most.
The three basic financial statements are the (1) balance sheet, which shows firm’s assets, liabilities, and net worth on a stated date; (2) income statement (also called profit & loss account), which shows how the net income of the firm is arrived at over a stated period, and (3) cash flow statement, which shows the inflows and outflows of cash caused by the firm’s activities during a stated period. Knowing your financial statements is a crucial step for every startup, no matter the size, stage, or scope.
Katarina P. Matayoshi
Venture Associate, Sultan Ventures In addition to being a Venture Associate at Sultan Ventures, Kate is also the Program Manager