Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

For this week's discussion forum, assume you are in the throws of finalizinga start up business you have been dreaming of for years.It is almost

For this week's discussion forum, assume you are in the throws of finalizinga start up business you have been dreaming of for years.It is almost time to forage out on your own into the business world as an entrepreneur, but you need $500,000 in start up capital.You have an opportunity to convince a group of"Angel Investors" of the potential for the venture you have been working on in previous weeks.Your task is to convince yourclassmates (your potential Angel Investors) that they should each contribute $50,000 in start up money.You are looking for 10 investors you will offera 5% share of your venture; you will maintain 50% ownership.So the first question from your potential Angel Investors is to project where revenue growth will come from and your logic for where thatprojected revenue growth will come from?You've done your homework on how to grow your business in stages over the next 3 years.You have already given them the projected income statements for the next three years. What your potential investors ask you is to support your projected growth.Numbers are fine, but they are not necessary as your investors already have your financial projections.They want to see your insight into how you willgrow the business during the first three years.Start your posting with a short explanation of the venture you are interested in setting up.Then logically, methodically, and clearly how you can support the growth projections you have given your Angel Investors.Be sure to include what evidence you can offer?Yes, this has a little element of what the Irish call "Malarkey," but make your Malarkey as believable as you can.Remember, your logic needs to be good enough that each of your 10 fellow students will cough up $50,000.

Please give detailed answer and references.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Valuation Measuring and managing the values of companies

Authors: Mckinsey, Tim Koller, Marc Goedhart, David Wessel

5th edition

978-0470424650, 9780470889930, 470424656, 470889934, 978-047042470

More Books

Students also viewed these Finance questions