Based on the material covered in this chapter, what questions would you ask the firm’s founders before making your funding decision? What answers would satisfy you?

Business Idea: Reduce traffic congestion, air pollution, and wear and tear on the nation’s highways by introducing an easy-to-use, self-service, bike-for-hire system.

Pitch: Traffic congestion is stressful; it causes air pollution and costs millions in tax revenue spent on keeping roads in good repair. Now one company is encouraging people to give up their cars in favor of pedal power.

Vélib’, located in Paris, France, is pioneering the concept of a public bicycle rental program. On July 15, 2007, 10,000 bicycles were introduced to the city along with 750 automated rental stations holding 15 bicycles each. Customers pay a deposit of $200 for an unlimited number of rentals and are then given a charge card that detaches the bikes from the cycle racks. The rental is $1.80 for unlimited access 24 hours a day or $8.50 for a seven-day pass. The bike does not need to be returned to the same pick-up point; customers can pick up one of the distinctive gray bicycles from a rack near the Eiffel Tower, cycle to the Pantheon, and leave it at the nearest Vélib’ stand there. Twenty trucks are used each night to redistribute the machines to high-demand stations.