MSC DEVELOPMENT FINANCE

MFD $001$: MICRO ENTERPRISE FINANCE

CAT

Assignment Title: "Venture Capital Analysis and Investment Proposal"

Objective: To analyze a startup company, evaluate its potential as a venture capital investment, and present an investment proposal.

Instructions:

Part $1$: Startup Selection $($Due Date: Week $1)$

$1.$ Research and select a real or hypothetical startup company that you believe has high growth potential. You may choose a company from a specific industry of interest.

Part $2$: Initial Assessment

$2.$ Write a brief summary of the selected startup, including its mission, product or service, target market, and founders' background.

$3.$ Conduct a preliminary assessment of the startup's value proposition and competitive advantage. Explain why you think this company has the potential to disrupt the market.

Part $3$: Market Analysis

$4.$ Analyze the market opportunity for the startup. Provide data and information about the market size, growth rate, trends, and competition. Discuss the startup's positioning within this market.

Part $4$: Financial Analysis

$5.$ Prepare a financial analysis, including the startup's historical and projected financial statements $($income statement, balance sheet, cash flow statement$).$ Include key financial metrics such as revenue, gross margin, burn rate, and runway.

Part $5$: Investment Proposal

$6.$ Develop a venture capital investment proposal for the startup. This should include the following elements:

a$.$ Proposed Investment Amount: Specify the amount of funding you recommend for the startup.

b$.$ Equity Stake: Indicate the equity stake or ownership share you propose in exchange for the investment.

c$.$ Valuation: Calculate or propose a valuation for the startup and explain the basis for your valuation method.

d$.$ Investment Terms: Define any investment terms, such as liquidation preferences or anti$-$dilution provisions, and explain their importance.

e$.$ Exit Strategy: Discuss potential exit strategies, such as acquisition, IPO, or staying private, and how they may impact the venture capital investment.

Assessment Criteria:

$$ Clarity and depth of analysis.

$$ Realism and justification of investment proposal.

$$ Quality of financial analysis.

$$ Presentation skills and effectiveness