MINI CASE: R$.$K$.$MAROON COMPANY

R$.$K$.$ Maroon is a seed$-$stage web$-$oriented entertainment company with important intellectual property. RKM$\text{'}$s founders, all technology experts in the relevant area, are anticipating a quick leap to dot$-$com fortune and believe that their unique intellectual property will allow them to achieve a subsequent $($year $3)$ $$100,000,000$ venture value with a one$-$time initial $$2,000,000$ in venture financing.

In contrast, similar dot$-$commers in their niche are currently seeking multistage financing amounting to $$10,000,000$ to achieve comparable results. The founders have organized with $1,000,000$ shares and are willing to "grant" venture investors a $100\%$ return on their business plan projections.

What is the primary reason R$.$K$.$ Maroon believes it can achieve a $$100,000,000$ venture value with only $$2,000,000$ in initial financing?

They have a large team of experienced marketers.

Their unieue intellectual property slves them a competitive edge.

They have already secured a second round of funding.

They plan to cut costs stgnificantly in the first year.