*Deliverable: 1 x Spreadsheet document tracking valuation rounds and 1 x Word document (font 12) 2 pages content and 2 pages exhibits.
Use Venture capital method attached and below to complete an xls table tracking the valuation for each round of financing; (Number of ordinary shares per round, total ordinary shares, percentage of total shares issued per round, new money at risk this round, pre-money valuation, post money valuation) then create a 2 page word document (font size 12) and explain what conditions (in the company, its performance, or the financial markets) you believe led to the valuations that were achieved explicitly addressing the following questions;
- Is this a good business opportunity? Why / why not?
- What do you think of the way Peter Williams has built the business?
- What do you think of the way Peter has financed the company?
- What are the reasons for the different financial instruments used? (See Exhibit 2.)
- Assess the roles and contributions of each of the investors.
- What conclusions do you draw from the financing valuations?
VC Method:
•Identify at ‘at risk’ money an investor is providing in the round
•Total equity stake (%) the investor wants
•Divide investment by shareholding to give Post money valuation ‘implied’ by terms
•Subtract total at risk money to give pre-money valuation
– Group all investors together if investing on same terms
•If investors getting different instruments, treat them as different rounds
•Think through implications of the structure
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