Try Your Hand at Venture Capital

You work for Venture Capital Company, Ventucap Ltd. Recently a number of requests for start-up capital have come in. The Managing Director has asked you and your colleagues (a management team of about four) to read through three Executive Summaries and make one recommendation to the board for potential investment, with your reasons for choosing that one and rejecting the others.

Make sure you have read this section on venture capital thoroughly. Next download the three documents below. Each document gives you details on a company that requires funding. You can only invest your equity in one company.

Executive Summary Company 1
Executive Summary Company 2
Executive Summary Company 3

You must decide which company you are going to invest in and why. Use the summary sheet to record you decision and reasons.

Ventucap Ltd has compiled a reminder of important questions to be answered during an evaluation of companies wanting investment:

  • Does the idea / product look worthwhile / interesting
  • What evidence is there that there might be a market for this idea / product?
  • Who will be the customers?
  • What competition is there?
  • What is the business strength of management team?
  • Are the projections realistic?
  • What is the company’s greatest strength and biggest weakness?
  • How much are they prepared to put in compared with the amount they wish to borrow?
  • What might be Ventucap’s exit strategy?