Suppose that you are an entrepreneur attempting to get funding for your start-up. The venture capitalist whom you are presenting to tends to either invest $250,000 (limited investment) or $1,000,000 in each company. You believe you might be able to make it with just $250,000, but it will be difficult. After you present, you will have an opportunity to request either amount from the venture capitalist. Represent this as a payoff matrix (use #s as needed) and make reasonable assumptions as to what happens if you and the venture capitalist have different opinions about how much to fund you. What strategy will you pick using maximax, maximin, or maximum regret?

If you ask the venture capitalist for 250,000 and he had planned to give you that, great! Similarly, if you asked the venture capitalist for 1M and he planned 1M, great! But if theres a mismatch, I want you to spend time thinking, what most likely happens? If you ask the VC for 250000 and he planned to give you a million, will he (a) still give you a million (b) only give you 250000 or (c) not give you anything, feeling you dont understand your own business? Which one sounds most right to you?