ou land a job at a prominent Venture Capital firm. Your job is to think about the value of a new startup you are considering investing in. One thing to consider is how risky this new investment is. Explain how you might think about this risk differently if (a) this is the only startup that you fund, or (b) if you have already invested in many other startups.
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You land a job at a prominent Venture Capital firm. Your job is to think about the value of a new startup you are considering investing in. One thing to consider is how risky this new investment is. Explain how you might think about this risk differently if (a) this is the only startup that you fund, or (b) if you have already invested in many other startups.
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- Your grandmother calls you up and asks you for advice on where to invest some of her money. What do you think would be an appropriate investment for her. Choose one from the following A. Bitcoin B. An electric vehicle company C. A dividend paying stock D. A mutual fund that invests in risky smaller companies in the biotech industry.Lily and Bob own a company and have been developing a product that they want to take to market. To do this they need substantial investment that they are unable to raise from their own savings. They are thinking of approaching a venture capita firm and ask you for advice as they know you studied finance. Explain the process of obtaining venture capital. What woulo that mean for their company?1. What types of people are angel investors, and how are they different from venture capitalists? 2. Explain Angel math and the 10X formula. 3. Why is it recommended that a startup exhaust all other forms of investment before turning to angel investors?
- It can be argued that the decision to accept venture capital is one of the most critical decisions an entrepreneur must make. Explain why.what are some risks of investing in investing in SAAS startupsA financial services company is considering investing in a new fintech startup that has developed a new technology platform for investment management. The company is concerned about the risks associated with the investment and wants to evaluate the potential return on investment. You have been hired as a consultant to help the company make an informed decision. Which of the following financial ratios would be most appropriate for the financial services company to evaluate the financial health and performance of the fintech startup? Gross profit margin Debt-to-equity ratio Return on investment (ROI) Price-to-earnings (P/E) ratio
- We have probably all heard about the Bernard Madoff Scandal. As investors we need to have adequate financial literacy to avoid these types of events. What steps can you take to help ensure your financial advisor is creating a portfolio that benefits you and your investment objectives? What types of questions should you be asking? What can you do to help ensure your returns are where they should be? (How would you check to verify that your returns are realistic and acceptable?)You are an investment advisor. During a consultation a client says to you "I want to diversify my portfolio. I currently hold investments in two companies, but I've read that if I add more assets to my portfolio, I can eliminate risk completely. Using a diagram, advise the investor as to whether his assumption is correct.You are an Acquisition Offer for an Investment Bank. You work in the High- Tech Investment Division of the Investment Bank. You understand high tech companies come and go very quickly. You also understand that the technology changes so quickly that a long-term forecast can be worthless very quickly. It is a changing market. You have been offered the opportunity to acquire a Silicon Valley based high tech company. You must decide if you recommend making the acquisition. You have been told that you must operate with a 6.0% WACC. You have decided that you will make your recommendation based upon a four-year forecast. The Company: The company, MERCO, makes processing chips for Intel. MERCO has signed two contracts with Intel. The first expires in two years and pays the company an annual amount of $1,924,261 and $2,212,900 for each year. The second contract was signed because Intel was happy with the work MERCO had done for it. The…
- You have two investments that have positive net present values and are financially feasible. Your boss wants you to make a recommendation on which one of the two to invest in given different useful lives? How do you account for this/make the decision?In starting your start up, it is absolutely important to possess funds for doing the business, Considering the fact enlist the different sources of capital for startup’s that would act as source for the funds?You are an investment advisor. During a consultation a client says to you "I want to diversify my portfolio. I currently hold investments in two companies, but I've read that if i add more assets to my portfolio, i can eliminate risk completely." Required. Using a diagram, advise the investor as to whether his assumption is correct.