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1.Evaluate case studies 1 and 2 using the given information to determine good vs. bad investment opportunities for a VC. Case 1 A VC fund
1.Evaluate case studies 1 and 2 using the given information to determine good vs. bad investment opportunities for a VC. Case 1 A VC fund is considering investing in a new startup that has developed a new platform for online tutoring services. The platform offers a unique approach that allows students to have one-on-one sessions with tutors and track their progress over time. The startup has already secured contracts with several schools and has a strong pipeline of potential clients. Financials: Revenue in the first year: $500,000 Revenue growth rate: 50% per year Gross margin: 40% Burn rate: $300,000 per year Valuation: $3 million Case 2 A VC fund is considering investing in a new startup that has developed a new e-commerce platform for fashion accessories. The platform offers a unique approach that allows users to customise their own accessories and has them delivered to their location. The startup has not secured any contracts with retailers or manufacturers and has no clear strategy for customer acquisition. Demo Financials: Revenue in the first year: $100,000 Revenue growth rate: 10% per year Gross margin: 25% Burn rate: $700,000 per year Valuation: $10 million 2. Evaluate the case given below and determine how
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