week 6 discussion 67

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DISSCUSSION 1:

“Valuation” Please respond to the following:

  • Entrepreneurs want to value their companies as low as they can for stock option purposes, but as high as they can when they are attempting to raise capital. Analyze how often this statement may be true. Provide an example to support your response.
  • Estimate the time and money needed to complete an early-stage evaluation on your business venture from Assignment 1. Then, indicate how the needs analysis may impact decisions made by the owner. Provide a rationale with your response.

DISCUSSION 2:

“Early-Stage Valuation” Please respond to the following:

  • From the e-Activity, building your business venture from Assignment 1 will take time and cash. Identify the one to four (1-4) levels (seed, Series A, Series B, and Series C) of financing that you expect your company will need. Then, outline a strategy for obtaining each level for your business venture.
  • Take a position on the following statement: When evaluating a small start-up company, valuation becomes more art than science. Support your position with evidence or examples.

DISCUSSION 3:

“Venture Capital Valuation Methods” Please respond to the following:

  • Determine the most likely valuation method a venture capitalist would use to value your business venture from Assignment 1. Provide a rationale for your response.
  • From the e-Activity, assess the effectiveness of ESOPs to incentivize key employees and whether or not this would be a viable option for your venture. Provide an example to support your response.

DISCUSSION 4:

“Professional Venture Capital” Please respond to the following:

  • Imagine you are a venture capitalist reviewing the business venture you have developed over this course. From this perspective, describe how you (as the venture capitalist) would conduct the due diligence for the business venture. Then, assess what you may learn from this process.
  • Of the steps in the venture capital process, indicate which step may be the most crucial to the majority of entrepreneurs. Assess how entrepreneurs can be prepared to handle this step successfully.