Entrepreneurship Funding Innovation Class # 9 2017

Premises in the creation of companies Agenda Premises in the creation of companies Concepts: definitions, stages of company development, types of investors and ways to exit Useful websites

Premises in the creation of companies Financial Factors of New Business Success: Equity or positive leverage operation (efficient use of third-party capital) Reinvestment of profits Low capital immobilization Control of indebtedness Capitalization of the company 3

Premises in the creation of companies Financial Factors of New Business Failure: Excessive immobilization of fixed assets (delays ROI and makes business vulnerable to production-sale swings) Uncontrolled customer credit Poor financial management and no cost control (operating deficit, lack of working capital) Very optimistic forecast of sales at the beginning of the business Indebtedness (especially in phases of economic instability) 4

Premises in the creation of companies Alternatives for reducing initial immobilization: Rental of assets (office, machinery); Leasing of equipment Negotiation with suppliers, payment terms, support in market development (partnerships or subsidies in the price of material and / or marketing) Gradual growth, if possible, with equity or low leverage Use cheaper credit lines (there are non-refundable credits or lost funds for certain investments) 5

Financing life cycle of the companies Revenue Consolidation IPO – Stock Exchange Expansion Venture capital Sources of Government Start –up Angels Seed money Idea Incubator Entrepreneur Friends Time 6

Useful websites Anjos do Brasil – Platform for angel investors and entrepreneurs Catarse – Crowdfunding Portal Inovação – MDIC Protec – Brazilian Society for Technological Innovation BV/Cdi/FAPESP - Virtual Library of the Documentation Center of the Foundation for Research Support of the State of São Paulo Investe São Paulo 7

Useful websites Sebrae FINEP Endeavor Anprotec BNDES 8

BNDES – Loans and lines of credit Finame (machines) BNDES-automatic Exim (export) Finem FGPC: Guarantee Fund for micro and small enterprises or for medium-sized enterprises exporting RHAE: support researchers 9

FINEP – Funding Agency for Studies and Projects Non-reimbursable funds: technological approach; Resources of the Sector Funds of the MCT -14 areas- only for nonprofits Reimbursable funds: from other sources or from FINEP itself Venture Capital: Inovar Project (early 2000) TJLP + 2% to 6% Eligible beneficiaries: SMEs, incubators, technology parks 10

Fapesp PROGRAMS: Assumption: Technological innovation and research Predominance of non-refundable capital PROGRAMS: Biota (biodiversity and sustainable use in the State of São Paulo) Cepid (research in fields of knowledge) Genome (genetics) PIPE (small business) PITE (interaction institutes research-companies) Public policy TIDIA (TI) 11

Fapesp - PIPE Researches of technological innovation in small companies (up to 100 employees) in SP. Company should employ researcher Phase I (up to R$ 80,000): technical and commercial feasibility studies Phase II (up to R$ 300,000): execution (term of two years) Phase III: commercial implementation (instructional support and funding) Venture Capital Search: Innovate (Finep) and Endeavor (NGO) Projects approved in website (more than 150) 12