EP 64 – How to screw up your startup: 5 financial mistakes with Dr. Sven Greulich
Do you know about all the different ways to screw up your startup’s financials?
Managing investments for your startup is bound to come with difficulties and requires a lot of learning by doing. However, you can learn how to avoid these mistakes beforehand!
Tune in to todays episode and listen to Sven, Gerrit and Dries discuss about:
- Both sides of the financing table
- What type of red flags to identify in investors?
- Do you get in bed with the devil?
- Equity shares in university spin outs
- And many other interesting topics!
We hope you enjoy!
(1:00) Intro by Gerrit
(2:37) Giving away too much equity too early – how does it make you feel Sven?
(7:30) Gerrit describes his experience and examples of giving away equity too early
(9:45) Sven brings in the corporate view point on equity splits
(10:41) Gerrit dives into external capital
(11:33) How much equity a university should have at a spin off
(15:00) Gerrits first venture and equity offers by angels experience
(17:50) Angels are the real risk takers
(21:31) Movement more towards the US regarding equity?
(25:00) Convertible loans are an amazing tool
(25:25) There are 3 main economic levers
(26:50) Sven, what do you recommend when collecting tickets to not have a mess?
(28:55) Sven, what are the mistakes you see in the boards of startups?
(30:13) What makes a good board?
(31:40) Gerrits stories on startup boards
(25:30) What good investors would do
(36:50) The moral of the story is a good board
(38:30) Sven highlights important decisions to make when creating your board
(40:40) Do you Sven, as a lawyer see yourself as a helping hand there?
(43:00) Gerrit’s advice to how to treat investors coming into your startup
(46:30) Sven, what do you say when people come and ask if they should get an investor even if there are many red flags?
(50:00) Desperate companies suffer from poor investors
(53:41) What happens when you take money from someone you wish you hadn’t?
(55:37) Lack of stakeholder management when negotiating financing management
(59:40) Sven, how do you do a rolling close?
(1:01:10) Gerrit, have you fallen into the trap of being a bit too arrogant when you give money?
(1:05:00) A lot of learning is done by doing
(1:07:00) Thank you for listening!