Q: You have started a company and are in luck—a venture
You have started a company and are in luck—a venture capitalist has offered to invest. You own 100% of the company with 5 million shares. The VC offers $1 million for 800,000 new shares. a. What is th...
See AnswerQ: Starware Software was founded last year to develop software for gaming applications
Starware Software was founded last year to develop software for gaming applications. The founder initially invested $800,000 and received 8 million shares of stock. Starware now needs to raise a secon...
See AnswerQ: Suppose you are a British venture capitalist holding a major stake in
Suppose you are a British venture capitalist holding a major stake in an e-commercestart-up in Silicon Valley. As a British resident, you are concerned with the poundvalue of your U.S. equity position...
See AnswerQ: You work for a venture capitalist and have been asked to analyze
You work for a venture capitalist and have been asked to analyze a proposal from a group of investors interested in building a new ski area in Colorado, the Gold Mountain Ski Resort. The demand for sk...
See AnswerQ: In a column in the Wall Street Journal, venture capitalist Peter
In a column in the Wall Street Journal, venture capitalist Peter Thiel described the difference between monopoly businesses and competitive ones: “Suppose you want to start a restaurant in Palo Alto t...
See AnswerQ: Hetty Grey has just approached a venture capitalist for financing for her
Hetty Grey has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2016, Hetty was loaned $150,000 at an annual interest ra...
See AnswerQ: A venture capitalist wants to estimate the value of a new venture
A venture capitalist wants to estimate the value of a new venture. The venture is not expected to produce net income or earnings until the end of year 5 when the net income is estimated at $1,600,000...
See AnswerQ: A venture capitalist firm wants to invest $1.5 million
A venture capitalist firm wants to invest $1.5 million in your NYDeli dot.com venture that you started six months ago. You do not expect to make a profit until year four when your net income is expec...
See AnswerQ: Arnold Vimka is a venture capitalist facing two alternative investment opportunities.
Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $800,000 in a start-up firm. He is nervous, however, about future economic volatility. He ask...
See AnswerQ: Office Helpers is a private firm that manufactures and sells office supplies
Office Helpers is a private firm that manufactures and sells office supplies. The firm has limited capital and is estimated to have a value of $80 million with the capital constraints. A venture capit...
See AnswerQ: You are a venture capitalist and have been approached by Cirrus Electronics
You are a venture capitalist and have been approached by Cirrus Electronics, a private firm. The firm has no debt outstanding and does not have earnings now but is expected to be earning $15 million i...
See AnswerQ: Grace Herron has just approached a venture capitalist for financing for her
Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $150,000 at an annual interest...
See AnswerQ: Grace Herron has just approached a venture capitalist for financing for her
Grace Herron has just approached a venture capitalist for financing for her new business venture, the development of a local ski hill. On July 1, 2013, Grace was loaned $150,000 at an annual interest...
See AnswerQ: Ronald Allerton has just approached a venture capitalist for financing for a
Ronald Allerton has just approached a venture capitalist for financing for a new business venture, the development of a local ski hill. On July 1, 2013, Ronald was loaned $140,000 at an annual interes...
See AnswerQ: Ronald Allerton has just approached a venture capitalist for financing for a
Ronald Allerton has just approached a venture capitalist for financing for a new business venture, the development of a local ski hill. On July 1, 2013, Ronald was loaned $140,000 at an annual interes...
See AnswerQ: What items in a business plan does a venture capitalist look for
What items in a business plan does a venture capitalist look for in deciding whether to provide initial financing?
See AnswerQ: Roman Systems Inc. (RSI) is a Canadian private company
Roman Systems Inc. (RSI) is a Canadian private company. It was incorporated in Year 1 by its sole common shareholder, Marge Roman. RSI manufactures, installs, and provides product support for its line...
See AnswerQ: GoLearn is a new social networking site designed mainly for college students
GoLearn is a new social networking site designed mainly for college students who have an interest in study abroad. Students from both within and outside the United States are beginning to join, althou...
See AnswerQ: Ethelbert.com is a young software company owned by two entrepreneurs
Ethelbert.com is a young software company owned by two entrepreneurs. It currently needs to raise $400,000 to support its expansion plans. A venture capitalist is prepared to provide the cash in retu...
See AnswerQ: The financial statements for Armstrong and Blair companies are summarized here:
The financial statements for Armstrong and Blair companies are summarized here: The companies are in the same line of business and are direct competitors in a large metropolitan area. Both have been...
See AnswerQ: In today’s business climate, entrepreneurial activity is strong. It’s a
In today’s business climate, entrepreneurial activity is strong. It’s a great time to be an entrepreneur. More than ever, the people seizing entrepreneurial opportunities are women. But while it may b...
See AnswerQ: Arnold Vimka is a venture capitalist facing two alternative investment opportunities.
Arnold Vimka is a venture capitalist facing two alternative investment opportunities. He intends to invest $800,000 in a startup firm. He is nervous, however, about future economic volatility. He asks...
See AnswerQ: In January 2006, the chair of Hewlett-Packard (HP
In January 2006, the chair of Hewlett-Packard (HP), Patricia Dunn, hired a team of independent electronic-security experts to determine the source of leaked confidential details regarding HP’s long-te...
See AnswerQ: Discuss the principal sources of small-business private financing.
Discuss the principal sources of small-business private financing. (1) Would a profitable small business with only moderate growth potential be a good candidate for venture capitalist funding? Why or...
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