PRO FORMA SOURCES AND APPLICATION OF FUNDS (YEAR 1-5)
ENTR427 WEEK 5: ASSIGNMENT WORKSHEET
Early Stage Financing
How will you raise the money needed for
o Seed Capital to build prototypes, proof of concepts, etc.
o Company start-up costs & initial marketing research
Expansion & Development Stage Financing
How much and from what sources will funds be available for…
o Second stage capital for initial growth
o Third stage for expansion to grow sales revenues
o Fourth stage to prepare company for initial public offering (IPO)
Acquisition and or Leveraged Buyout (LBO) Financing
Traditional acquisition and control of the company
o LBO another company buying out the present owners
o Owner, Investors Managers of the company buying all outstanding shares of the
company’s stock making the company private.
Product Development Budget Year 1 Year 5
Developers
Lab & Facilities
Prototype / Minimum Viable
Product (MVP)
Test Marketing
Marketing Strategy Budget Year 1 Year 5
Market Research Personnel
Customer Focus Groups
Market Data Analysis
Limited Release / Launch
Selling Budget Year 1 Year 5
Advertising/promotion expense for; e.g.
a store front, web page, a facility?
Salaries for sales agents, people?
Misc. Selling Expenses
Production & Distribution Expense
Note: This is not a complete and exhaustive list of start-up expenses you will encounter.
