Finns3623 Venture Capital Semester 2 2012 Assignment

FINS3623 Venture Capital Semester 2, 2012 Assignment Task: The objective of this assessment is to develop and test your ability to prepare a funding proposal for a venture capitalist and provide them with the information they need to assess an application for funds. Learning Outcomes: At the completion of this assignment, you expected to acquire and demonstrate:     the relevant technical skills in making quantitative and qualitative assessments of a private company at the early stage of its development cycle the ability to apply and discuss the relevant theories related to venture capital investment the ability to collect and compile important financial information as well as to produce and present a detailed and convincing investment proposal report the ability to work cooperatively in a group
The proposal should be written for people external to the company, i.e. managers of a venture capital fund, a private equity fund or a syndicate of funds. You should note that the content, style and level of detail of this type of business plan is different from that of an internal business plan that you would use to run the business. It must market the firm well and provide venture capital funds with the information they need to determine whether they will invest in your firm or not. Your business plan should cover the following topics: 1. Executive summary / Information memorandum This should be a 1 – 1.5 page summary which highlights the most notable merits and risk of the investment opportunity. It should contain your recommendation regarding the funding decision, the funding amount, price, and main purposes of funding. 2. Background       Business and product description Current owners Management team, personnel and compensation Market and industry competitiveness analysis Production and operational strategy Use of