Prelude Financials
An overview of valuation, dilution, and funding.
Lecture with hands-on working session. Attendees will first be introduced to the Prelude™ pro forma tool: a quick-screening Profit & Loss projection that estimates any idea’s Net-Present Value with only 7 key assumptions. By using pessimistic and realistic estimates, the tool highlights where an idea’s financial success is most sensitive; hence prioritizing deeper analysis and possibly rendering the idea or its 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 longevity of sales).
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 to a successful exit.
During working sessions, teams will complete their own Prelude pro forma and Prelude cap-table and present back as to how these tools have shaped their idea for success and critical next-step action.
Attendees can bring their own ideas with preliminary financial assumptions, or can experiment with the tools using a provided set of data.
Contact time: 6-8 hours
Customization: Workshop can be separated over time. Part One: Tools explained. Individuals (or teams) are given a week or two to more fully utilize the tools with real data. Part Two: Present and discuss how the financial analysis has impacted the idea and prioritization of research and action.
Prelude™ pro forma and Prelude™ cap-table templates
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