Homework: Why startup fails?
20 reasons
https://www.cbinsights.com/research-reports/The-20-Reasons-Startups-Fail.pdf
http://www.forentrepreneurs.com/why-startups-fail/
Exercise: How to setup an Airline?
Reality check
-
PEST
- Political
- Economic
- Social
- Technological
- e.g. PMI, BDI(Baltic Dry Index)
-
Michael Porter - 5 forces
- Competitive Rivalry within an Industry
- Bargaining Power of Customers
- Bargaining Power of Supplier
- Threat of New Entrants
- Threat of Substitute Products
Industry Outlook
Business Valuation
-
SWOT
- Strength
- Weakness
- Opportunity
- Threats
Drivers and Scalability
Competitors
Customers
Business Plan
- Mission Statement
- Company background
- Product Description
- Marketing Plan(Price Place Promotion...)
- Competitor Analysis
- SWOT Analysis
- Operations
- Financial Planing
- Timeline
- Executive Summary
Exit Strategy
- M&A - mergers and acquisitions
- IPO - get listed on a stock exchange
- BAU - Behave as usual
Valuation
All valuation is based on forecast/cashflow based/risk-adjusted
CAPM(Capital Asset Pricing Model)
Ke = Rf + (Rm - Rf) * beta
WACC = Cost of equity (+) Cost of debt
Industry standard discount rates
- Seed: 80%+
- Angel: 50%-70%
- Serial A: 40%-60%
- Serial B: 30%-50%
- Bridge: 25%-35%
Next guest speaker: ONG&ONG Corporate
