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XLRI Jamshedpur
Session 3:
Financing Your Start-Up: Magic or Logic?
BM 15-17: FM II
Session 3
Uday Damodaran
XLRI Jamshedpur
Read Bladelogic?
Quiz?
BM 15-17: FM II
Session 3
Uday Damodaran
XLRI Jamshedpur
Marvin
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Uday Damodaran
XLRI Jamshedpur
Cash 90,000
Intangibles $910,000
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Uday Damodaran
XLRI Jamshedpur
Marvin
BM 15-17: FM II
Session 3
Uday Damodaran
XLRI Jamshedpur
Cash 1,000,000
Intangibles $1,000,000
BM 15-17: FM II
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Uday Damodaran
XLRI Jamshedpur
Marvin
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Session 3
Investment of First
Meriam in what
form? Preferred
stock with
automatic
conversion
Uday Damodaran
XLRI Jamshedpur
MarvinSecond Round VC
BM 15-17: FM II
Session 3
Uday Damodaran
XLRI Jamshedpur
Cash 4,000,000
New Equity,
Second Round
$4,000,000
Intangibles $9,000,000
BM 15-17: FM II
Session 3
Uday Damodaran
XLRI Jamshedpur
MarvinSecond Round VC
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Uday Damodaran
XLRI Jamshedpur
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Uday Damodaran
XLRI Jamshedpur
Magic or Logic?
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Uday Damodaran
XLRI Jamshedpur
Bladelogic
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..Setting
Bladelogic
Down Round: something you would not want to get into!
How to secure a new financing round without participation
of existing investors?
At what price would current investors participate?
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..
Dev & Vijay: what did they get out of their earlier ventures?
The only thing worse than being poor, is being poor
again!
And then, EIRs with Bessemer and Battery.!!
Bessemer Venture Partners, big name!
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..Financing Strategy
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..Terms
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..Progress
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..Challenges
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Uday Damodaran
XLRI Jamshedpur
Exhibit 4
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Uday Damodaran
XLRI Jamshedpur
Bladelogic..Options
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Uday Damodaran
XLRI Jamshedpur
Group Assignment
A: Business Plan
i. Read the Handout Raising Start Up Capital in-class quiz
will be based on this
Re-work your financing plan, splitting the financing into
rounds or stages, and outlining your strategy, if any.
Ii. Why would investors keep coming to you at later stages, and
at hopefully higher valuations? What would be your source of
competitive advantage/ grounds for commanding a good
valuation?
File name: Name your submission file name as
Submission2_SectionX_GroupYY where X= A,B or C and YY =
Your Group Number
Deadline: Midnight, Monday, 18th January
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Uday Damodaran
XLRI Jamshedpur
Group Assignment
B: Live Case
Prepare a (maximum) two-page write up highlighting your
favorite start-up financing story from anywhere in the world, of
whatever vintage. Say why you liked the particular story
File name: Name your submission file name as
Submission3_SectionX_GroupYY where X= A,B or C and YY =
Your Group Number
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