1. [20 points] The following table contains financial information from the business plan of a new venture that makes a portable device that uses laser technology for measuring distances with great precision, LaserGolf, Inc. The information in the table is in thousands of dollars. (Note: The figures in parantheses and in red color below are negative.) a. Using this information and the discussion on stages of venture development from Lecture 1 (see p. 31 in the lecture slides), how would you propose to demarcate (i.e., identify the boundaries between) the stages of new venture development? b. How much cash is the venture expected to need in total? c. How would you suggest staging the infusions of cash? Why? d. What kinds of investors are best suited for investing at the various stages of development? e. What would you suggest as useful milestones for evaluating progress? 2. [20 points] Discuss how you would expect the financing choices of the following firms to differ and explain the reasons for the differences. a. An early-stage research and development venture, compared to an established venture that is generating revenue. b. A venture with revenues that are growing very rapidly and must expand its working capital base to match, compared to a venture with revenues that are growing at the inflation rate. c. A venture that is highly profitable and growing, compared to a venture that is growing at a similar rate but has not yet achieved profitability. d. A new venture that is being launched by an entrepreneur who has a significant track record of new venture successes, compared to a venture that is being undertaken by an entrepreneur with no previous new venture experience. e. A venture that requires large investment in tangible assets, compared to one with assets that are mostly intangible. 3. [20 points] A firm has a $100,000 account receivable it is considering factoring. It expects to collect the full amount in 60 days, but is in need of immediate cash. A bank offers a short-term loan of $85,000 secured by the receivable at 12% interest ( 1% per month). Alternatively, a factor will advance 85% of the receivable immediately, with a $15,000 reserve. The full receivable is collected in 60 days, from which the factor will deduct a 2.5% fee (i.e., $2,500 ). What should the company do? 4. [20 points] Suppose a fund invests $1 million in each of three portfolio firms. The first investment is held for the entire fund life and finally proves to be a total bust, returning nothing. The second investment is harvested quickly for $5 million and there is a distribution at that point with the usual terms. The third investment is the final one and turns out to also be a bust. If a clawback provision had been included in the agreement, would a clawback payment to the LPs be in order? (Ignore fees). Explain why or why not. If so, how much would be clawed back