thanks for all your help!
Foldscope is a foldable paper microscope based start-up that emerged out of a lab at Stanford University. The company created early prototypes of its low-cost and easy to build product with early prototypes in 2010. It began distributing actual production versions of the product to third-world countries using grant funding in 2014. The company has since launched the product broadly. The product is made from a precut/precreased set of heavy paper/light cardboard and a plastic lens. The purchaser simply opens the product package, folds it as directed and inserts the lens. This assembly takes just a couple of minutes. The cost of goods for the product is less than $1.00 and pricing averages $1.75 to $2.50. The primary market for the product was third-world countries that did not have access to expensive medical microscopes for diagnostic testing. The product's uses and end-user targets have increased to include third-world students and schools, hobbyists and school children in developed countries. The company appears to have achieved its target of selling 1 million units through the end of 2019, nine years after the company was created. They have not raised significant capital to date and are now seeking a substantial investment. For 50 points, describe why you, as a venture capitalist, would or would not choose to make an investment of $1.0 million and why. Be clear and specific After determining whether you would make an investment or not, use the Berkus Valuation method to determine the current pre-money valuation of the company. Also calculate the post-money value of the company if a $1.0 million investment was made. Foldscope is a foldable paper microscope based start-up that emerged out of a lab at Stanford University. The company created early prototypes of its low-cost and easy to build product with early prototypes in 2010. It began distributing actual production versions of the product to third-world countries using grant funding in 2014. The company has since launched the product broadly. The product is made from a precut/precreased set of heavy paper/light cardboard and a plastic lens. The purchaser simply opens the product package, folds it as directed and inserts the lens. This assembly takes just a couple of minutes. The cost of goods for the product is less than $1.00 and pricing averages $1.75 to $2.50. The primary market for the product was third-world countries that did not have access to expensive medical microscopes for diagnostic testing. The product's uses and end-user targets have increased to include third-world students and schools, hobbyists and school children in developed countries. The company appears to have achieved its target of selling 1 million units through the end of 2019, nine years after the company was created. They have not raised significant capital to date and are now seeking a substantial investment. For 50 points, describe why you, as a venture capitalist, would or would not choose to make an investment of $1.0 million and why. Be clear and specific After determining whether you would make an investment or not, use the Berkus Valuation method to determine the current pre-money valuation of the company. Also calculate the post-money value of the company if a $1.0 million investment was made
