Prepare a new growth proposal addressing three areas after going to the link given below:

1. The investment opportunity,

2. New Tech’s strategy, and

3. The management team.

And Answer the following question:

1. Does New Tech have a strong proposal? Have they adequately addressed the question about the management team raised in the last chapter?

2. Use the venture capital method discussed in the chapter, determine the value of New Tech in 20017 and the value today assuming a 30% discount rate. What is the value if the rate is 40%? What share of the company would an investor get for a $1,000,000 investment? Assume a market multiple of 8 to establish the value in 2017. How does this valuation compare to the valuation you performed in chapter 5 using the discounted Cash Flows (DCF)?

VC’s share =Investment /Present Value

Terminal value = year 5 net income x market multiple

3. If New Tech currently has 1,000,000 shares outstanding, how many shares will an investor get for the $1,000,000 investment? What stock price is reflected in this valuation?

4. If an investor receives a 30% share of the company for $1,000,000 investment and Elizabeth’s projections hold true, what return on investment will that investor earn? Is that sufficient? At what stage is New Tech at this time?

5. Does New Tech have the characteristics of a standard venture capital recipient?

Link of venture capital https://books.google.com/books?id=9uWjW0GSIu0C&pg=PA201&lpg=PA201&dq=Case+6.1+New+TECH+

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