Entrepreneurship and Communication in multicultural teams

1. Stéphane Foliard UIT Roanne France and Ron Beirens Vives FlandersBelgium Entrepreneurship and Communication in multicultural teams The funding issue

2. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Rationale • This is not a textbookppt • The source comesfromexperienceanddiscussionswith Entrepreneurs andsomelimitedtheoreticalfindings. • But thisalso has limitations. This is notan exact science. • You have tofind out byyourself.

3. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Content • Do you really need funding? • The alternative ways to fund your company-non banking • From your family to business angels • The funding plan • Your needs • The options • Initial funding

4. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Typical sources of funding • The pecking order theory (Myers and Maljuif) • Firms prefer internal financing. • Second best: debt • Venture capitalist and business angels • Open the capital, to sell equity

5. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Typical sources of funding • Equity • Angels • Accelerators • Seed, Venture Capital • Growth, Private Equity • Public Markets • Others • Bootstrap • Friends and family • Debt • Grant, subsidies • Alternatives • Crowd funding

6. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Funding strategy • You do the job first • Then, you know if you should even raise money. • If you don’t know, the answer is no • No need • Personal: risk aversion, lifestyle, control (King vs rich) • Business: small potential • Not for profit

7. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Waitandlearn • Very young and top talent? Do not start a business. • http://www.standaard.be/cnt/dmf20180225_03376902 • Today, MaximeCoutte a 16 year (old) young French citizen no longer wants to start a business. That is something for later. Our goal today is to have fun,"he says. We want to democratize VR. I realized that I am still young and have a lot of time to learn. Being able to learn without pressure is something valuable. I want to make things I love, and they are useful', he adds. • Three times guessing what that will lead to. Maxime:' There is a good chance that I will become an entrepreneur anyway'. • Translated with www.DeepL.com/Translator

8. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Notgoingto the bank Why? • FACT BOX: LOANS FROM THE BANK IN FLANDERS • In Flanders 3 out of 10 starters didn’t even go for a loan from the bank. From the 7/10 others 50% got a total refusal and 10% a partial refusal. • So 35% of the starters population gets a full loan and 7% a partial loan from the bank. • Source: Netto, De Tijd, October 2016 (Dutch) • Scarce articles in newspapers suggest that (HORECA) Hotels, Restaurants and pubs (Café) have almost no chance to get a loan from the bank.

9. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Graph starters

10. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium You may not need financing

11. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Self financing

12. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 1 Bootstraping • The best money is customer’s money • Internal cash flow • Focus on customers and not on investors • Dangerous …because

13. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 2 FFF (friends, family, fools) and crowd funding and incubators • 2.1Some countries have special forms of tax reliefforthis type of funding (find out). • Belgium has Win-win loan, a friend or relativethatgivesyou a loancandeductitfrom his taxesto a certainextent. • Other have tax shelter (Belgium) where a third person candeduct up to 30% of his taxes. • Your country has….. • 2.2 Crowd funding and –lending • Several types

14. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 2.2 Crowd funding and –lending Several types

15. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 2.2 Crowd funding and –lending

16. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 2.2 Incubators

17. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 2.2 Incubators

18. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 2.2 Incubators

19. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 3 Look for venture capitalists-business angels

20. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 3 Business angels • A wide variety of amount • A few thousand to a … few million • Convertible debt or equity • Individuals • Generally affluent (Bernard Arnault) • Experienced advice • Angel network • Networks of connections • Professionally organizer – cohesive • Fund centric model • Clarity and speed of process

21. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 3 business angels • in order to find a business angel the best is • to invest time in networking with (local) entrepreneurs (Chambers of Commerce, or other national organisations) in your neighbourhood and these networks know people who have the capital to invest • an entrepreneur who sold his business, usually doesn’t put his money on a savings account by a bank for many reasons. But be careful don’t give too much away, someone with deep pockets might copy your idea.

22. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 3 Look for venture capitalists

23. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Venture capitalist • Seed : € 100k to €1-3m • A to IPO • €millions, multiple rounds • Stage dependent participation, involvement • Active (board seat) • Passive (follow “lead” investors)

24. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Be realistic • Whether it be Business Angels of Venture Capitalists they are hard to convince if you don’t have a track record or excellent business plan 

25. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 4 Government support/fundng • Unemployment remains a huge issue • Programs to stimulate jobs and entrepreneurship Via new ideas and companies • Find them: • Grants: money given without any need to repay • Tax credits: keeps money in your business • Special loans: like grants with small payback • Special bank warrantee: facilitates the loans

26. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Relationships and money • As simple as possible ! • Funders receive ‘000s of plans • They are not engineers • They research Partnership • Triangulate ways to connect • Find someone who knows the financier • Get a warm introduction • Interact on line • Use your initiative!

27. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium 5 EU Funding • Commission focuses its efforts on: • business start-ups by unemployed and people from vulnerable groups • support for social entrepreneurs • microfinance. • and seeks to: • increase knowledge about entrepreneurship and self-employment • build capacity in EU countries and regions • support entrepreneurship financially. • http://ec.europa.eu/social/main.jsp?catId=952 • Network trough the European Entreprise Network find out what’s interesting for you don’t forget to network through local business networks • http://een.ec.europa.eu

28. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium First contact advice • Establish • WHO you are (relevant experience) • WHAT do you do (uniquely well for who) • WHY does it matter (market opportunity) • Investors are really busy • Limit agenda, control the discussion, get the first meeting! • Tell your story • Build momentum!

29. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Funding plan

30. Stéphane Foliard UIT Roanne France and Ron Beirens Vives Flanders Belgium Whatcan we expectfromyou? • ASSIGNMENT • Make a funding plan (see below): that gives you some direction towards funding. What types of funding will you explore/consider now and in future?