Below I have outlined five critical human element issues relating to Beachwood Spouts where Charles Barker must obtain additional understanding and insight in order to more accurately weigh the potential of the investment opportunity. Since he is considering investing both his individual wealth as well as recommending the investment to a number of his clients it is mandatory that he perform proper due diligence. (Disclaimer: this is not an exhaustive list of all critical human element issues relating to Beachwood Spouts).
Talk to Rachael Best: when evaluating an investment opportunity it is extremely valuable to talk with experienced investors who reviewed and ultimately decided to pass. This will often highlight issues with the investment that you may have overlooked or had not been aware of in the first place. Rachael Best is a partner at Bluestone Capital, an established VC firm, which recently passed on the opportunity to invest in Beachwood Spouts. Getting her insight regarding issues with Beachwood’s economic model, nature of the industry and relationship of Beachwood Vials and Spouts is critical in developing an objective understanding of the investment. 2.
Is Pine Biased: Barker and Daniel Pine have made money in the past on several private investments. This could taint Barker’s objectivity regarding the investment, as he would feel compelled to invest in his friend and business partners company. However, it is necessary for Barker to take a step back and valuate Pine’s true motives. Is Pine raising money for Spouts because he truly believes in the potential of Spouts or are there ulterior motives? Since Pine has already made substantial investments in Spouts’ second round of investment he may want to raise the money for purposes ranging from protecting his original investment or getting bought out. Before Barker pursues this investment he must get a sense of Pine’s true motives. 3.
Relationship between Beachwood Vials and Beachwood Spouts:...
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