Assignment 2 25733 Finance for Entrepreneurs

Assignment 2                 25733 Finance for Entrepreneurs

Value 30%   Due date: via turnitin in the subject Canvas site by midnight April 28, 2021

Students are expected to research the questions via any and all online resources. Please ensure you provide links to online sources in your references/appendix to provide proper attribution.

Question One – Batch Brewing Funding (20 marks)

Please note that the offer document and constitution have been provided to you on Canvas. You may also find additional information at https://equitise.com/offer/batch-brewing-offer-442204 while it is available.

Q1A – Revenue growth (3 marks; 150 word limit and 50% deduction of marks if over 150 words)

The offer document describes their revenue growth as 22% compound average growth rate. Please discuss whether you think this is this an accurate number or not.

<insert your answer here>

 

Q1B – Hub and spoke  (2 marks; 100 word limit and 50% deduction of marks if over 100 words)

What are the benefits of their hub and spoke production and venue model and is this something that we can consider as IP? Are there any other industries that use this model?

<insert your answer here>

 

Q1C – Competitors   (3 marks; 150 word limit and 50% deduction of marks if over 150 words)

Who are the local competitors of Batch and has the industry changed since they began in 2013? Does Batch consider their local competitors in their offer document?

<insert your answer here>

 

Q1D – Valuation multiple (2 marks;  100 word limit and 50% deduction of marks if over 100 words)

Is Batch’s revenue multiple consistent with the comparison breweries and industry in general? Provide support for your answer.

<insert your answer here>

Q1E – Valuation (5 marks;  250 word limit and 50% deduction of marks if over 250 words)

Do you think the valuation is appropriate? Why or why not? A good answer may use some comparison ratios with other companies.

<insert your answer here>

 

Q1F – Investor Rewards (3 marks;  150 word limit and 50% deduction of marks if over 150 words)

Section 3.2 of the offer document lists investor rewards. Do you think this will influence the decision to invest in the shares – why or why not? What do you estimate the cost of the rewards to be for each investor? Are there any investors who can recoup the entire cost of their shares due to these rewards?

<insert your answer here>

Q1G – Use of funds (2 marks;  100 word limit and 50% deduction of marks if over 100 words)

Batch has provided a detailed intended use of funds. Which of these will be most likely to result in revenue and or profit increases in subsequent years?

 <insert your answer here>

 

Question 2 – Entrepreneur Ecosystem (10 marks)

For reference please see the article about entrepreneurial ecosystems on Salon:  https://salon.thefamily.co/what-makes-an-entrepreneurial-ecosystem-815f4e049804

Q2A – One component of the entrepreneurial ecosystem in Sydney is the ability to raise capital. Identify 5 specific sources of potential capital in Sydney that an entrepreneur could attempt to access for his/her startup. Include a short description of how the entrepreneur could potentially access the funds.   (5 marks;  250 word limit and 50% deduction of marks if over 250 words)

<insert your answer here>

 

Q2B – Another component of a well-developed entrepreneurial ecosystem is the ‘know-how’ ie., all the people potentially involved in the startup community that have skills for helping the startups be successful. Some people in the ecosystem are often described as super-connected facilitators whereby they may be the most valuable to others via introductions between people.  Do some research to identify 10 people in the entrepreneurial ecosystem in Sydney and provide a one sentence description of why you included that person and provide a link to one of their social media profiles (LinkedIn or Twitter preferred). (0.5 marks each person)

<insert your answer here>

Bonus

What kind of economy is Sydney (as per the Salon article) and why?

<insert your answer here>