FINANCE PRIVATE EQUITY SECTION B Use the information below to answer Questions 1, 2, and 3 of this Section Company name Millie Tech Ltd Investment required $250,000 Equity Considered to be offered for this investment 20 Product Wearable device for animals that translates noises they make into simple, English language audible demands Idea Innovative, Scalable, Targeted to growing segment Target Market General consumers Prototype 'Beta' phase launched Patents Pending Management Team Experienced, Motivated Strategic Relationships development partnership Buffalo Bill Precious Inc , a well established community dog training company Product Rollout or Sales The patent is still pending Founder's Investment to Date $180,000 Profit $0 Revenue $50,000 Management (Option Pool) $0 Industry (Price Sales) Ratio 7 5X Estimated Average Value of Successful Startups in the region $1,300,000 Expected Sale Price on Exit $21,000,000 Investor's Required ROI 10X 1 Determine the Pre Money Value of Millie Tech Ltd using 3 or more valuation methods 2 You are the CFO of Millie Tech Ltd outline a capital raising strategy from 3 different sources describing how and why each one applies to this specific company 3 Describe 3 different Financial Instruments as they pertain to this specific investment opportunity, outlining the advantages and disadvantages of each from the perspective of a VC investor 4 A prominent investor provided feedback stating that the company is 'too early What next milestones can the company achieve to still add value and grow despite not receiving the full amount of capital it was seeking at this round

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Question: FINANCE: PRIVATE EQUITY SECTION B Use the information below to answer Questions 1, 2, and 3 of this Section. Company name: Millie Tech Ltd. Investment

FINANCE: PRIVATE EQUITY

SECTION B

Use the information below to answer Questions 1, 2, and 3 of this Section.

Company name: Millie Tech Ltd.

Investment required: $250,000
Equity Considered to be offered for this investment:20%
Product: Wearable device for animals that translates noises they make into simple, English language audible demands
Idea: Innovative, Scalable, Targeted to growing segment
Target Market: General consumers
Prototype: 'Beta' phase launched
Patents: Pending
Management Team: Experienced, Motivated
Strategic Relationships: development partnership Buffalo Bill & Precious Inc., a well-established community dog training company
Product Rollout or Sales: The patent is still pending
Founder's Investment to Date: $180,000
Profit: $0
Revenue: $50,000
Management (Option Pool): $0
Industry (Price/Sales) Ratio: 7.5X
Estimated Average Value of Successful Startups in the region: $1,300,000
Expected Sale Price on Exit: $21,000,000
Investor's Required ROI: 10X

1. Determine the Pre-Money Value of Millie Tech Ltd. using 3 or more valuation methods?

2. You are the CFO of Millie Tech Ltd. outline a capital-raising strategy from 3 different sources describing how and why each one applies to this specific company.

3. Describe 3 different Financial Instruments as they pertain to this specific investment opportunity, outlining the advantages and disadvantages of each from the perspective of a VC investor.

4. A prominent investor provided feedback stating that the company is 'too early. What next milestones can the company achieve to still add value and grow despite not receiving the full amount of capital it was seeking at this round?

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