You and your friend have started an Artificial Intelligence company. The technology you have developed can...

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You and your friend have started an Artificial Intelligence company. The technology you have developed can ascertain a person's intelligence by scanning an image of their eyes. The technology is working and you have gained revenues of 600,000RMB and sustained a net loss of 500,000RMB in your first year of operations. Your projected revenues and profit over the next three years, assuming you can gain 6 million RMB of funding, are as follows: Year/Measure Revenues (RMB) Net Income (RMB) Year 1 Actual 600,000 -500,000 Year 2 Projected 3,900,000 -100,000 Year 3 Projected 12,500,000 1,050,000 Year 4 Projected 25,000,000 8,900,000 a. Describe in detail how you would go about raising money and who you would try to get the 6 million RMB from? b. What valuation do you put on your company now? Explain how you determined this figure. c. What percent of equity are you willing to give the investor who gives you 6 million RMB of funding? You and your friend have started an Artificial Intelligence company. The technology you have developed can ascertain a person's intelligence by scanning an image of their eyes. The technology is working and you have gained revenues of 600,000RMB and sustained a net loss of 500,000RMB in your first year of operations. Your projected revenues and profit over the next three years, assuming you can gain 6 million RMB of funding, are as follows: Year/Measure Revenues (RMB) Net Income (RMB) Year 1 Actual 600,000 -500,000 Year 2 Projected 3,900,000 -100,000 Year 3 Projected 12,500,000 1,050,000 Year 4 Projected 25,000,000 8,900,000 a. Describe in detail how you would go about raising money and who you would try to get the 6 million RMB from? b. What valuation do you put on your company now? Explain how you determined this figure. c. What percent of equity are you willing to give the investor who gives you 6 million RMB of funding?

Answer rating: 100% (QA)

a To raise the 6 million RMB of funding we would need to develop a comprehensive funding strategy that takes into account our financial needs the potential sources of funding and the terms and conditi... View the full answer