Mr Anil Nair is running a Venture $($AN venture$)$ to develop algorithms for biosciences. He prepares an interesting business plan and approached various VCs including Ms$.$ Sonam Nair, CEO & GP$,$ KVCFL $($Kochi VC Finance Ltd$.)$ for a $1$st round finance. Ms$.$ Sonam agrees to fund the Venture to the tune of Rs$.200$ Lakh to take the company to the next level and agreed for an all$-$common stock of $52/48$ split with Mr Anil who will hold the majority stake.

$1.$ Imagine, ANV start functioning on $01$ April $2022,$ Mr Anil starts with a total of $250$ Lakh equity and requires on $31$st March $2023$ a total asset of $26578912/-$ with a net loss of $3233310/-$ How much, additional funds are needed? Make your assumptions. Give proper explanation on the type of funds you will seek and a proper break up$.$

$2.$ In the process, calculate the net cash burn rate for the above as on $31$st March $2023.$Use the template for the process with your own assumption

$3.$ Now, imagine in continuation to above balance sheet, ANV on $31$st March $2023$ had a cash of Rs $210000/-$ and a cash of $450000/-$ on $31$st March $2024$ with a profit of Rs $165000/--$ and a total asset of $31569813/-.$ Calculate the amount of cash that can be withdrawn from the company as surplus cash. Make your own assumptions and corrections if needed in this problem.

$4.$ Calculate the sustainable growth rate for March $2024$ onwards if the RR$=\mathrm{.}90$ or per your projections

$5.$ Now assume KVCFL assumes an exit after $5$ years with an equity value of $450$ million for ANV and a target rate of $60\%.$ Calculate the PV of the equity at exit, Post money value and Pre money value. What is the FV of KVCFL investment. Does it agree with the stock agreed? Why? Use Valuing the early$-$stage company readings for the purpose.

$6.$ Now, assume, ANV formed the firm with $4$ million shares, and KVCFL expects an income of $50$ lakhs per year at exit. A similar firm in Kochi, sold shares to public for Rs$10,000,000$ for similar venture income $=$ Rs$.1,000,000$ in $2023.$ What will be the going price per Rupee of income in this venture, and, then estimate the KVCFL exit value five years from now and the PV$.$ And, calculate the percentage to be acquired by KVCFL$,$ number of shares, and issue share price. Also, calculate the pre$-$money, post$-$money, AKV holding after the offer and KVCFL holding.

$7.$ Finally, suppose, KVCFL feels that there is a requirement of additional $100$ lakhs in the $4$th year. Then, calculate the percentage share to be offered to the $2$nd stage VCF assuming KVCFL will maintain the same holdings at the exit. And, calculate the number of shares to be offered to the $2$nd VCF$,$ issue share price, pre$-$money and post money value.

$8.$ Suppose the same day after the deal agreement with Ms Sonam, Mr Anil met his best friend Mr Salman who is the Country Head of Wolverinegang Life Sciences $($WLS$).$ This company was thinking of opening a biotech software in Kochi IT Park. On hearing the deal from Mr Anil, Mr Salman immediately offers Mr Anil $250$ lakh plus a Resort Bunglow at Munnar with a four$-$room pent house at Kochi along with Chauffeur driven car and a permanent job at WLS with a $30$ lakh per annum package. What are your views on the $2$nd offer compered to KVCFL offer.