Click the case link to download it, and I have attached the 2 files.
Instructions: After reading the case which is called OptiGuard’s and checking the exhibit and file #1 will be attached bellow and file #2 will be attached bellow, write a paper that responds to the key question:
*Would you say the term sheet for the Series A round generally favors the entrepreneur (Mannix) or the VC investor (WVP)? Be sure to cite specific terms and features of the contract to support your opinion. *
Additional Guidance: Consider the following questions as part of your analysis and discussion:
What contract terms are important and whether they are favorable to the entrepreneur or to the investor as written in OptiGuard’s Term Sheet?
How attractive is the company to prospective investors?
Before the Series A round, what is OptiGuard’s post-money value? After the Series A round, what is the pre-and post-money value if the offer is accepted as proposed?
What are the implications for WVP if another investor offers to provide OptiGuard an additional $7.8 million in equity after the Series A round at a price of $8.00 a share? At $3.00 a share?
What are the implications to WVP if it has a participating versus conventional liquidation preference and OptiGuard is sold for $15 million in three years?
If you were Mannix, would you accept WVP’s offer as proposed, or attempt to negotiate certain terms of the offer? If you choose to negotiate, what adjustments would you seek to make?
Be sure to follow these guidelines:
Assume your audience is knowledgeable about the finance concepts we’ve covered in class and is familiar with the case facts. You don’t need to explain what Series A is or debt and equity theories. Jump right into the analysis. Also, there’s no need to replicate case exhibits (you may reference them directly).
Go deep. When formulating a response, ask why. Then ask why again and justify your explanation by citing case facts and material. Back up your explanations with evidence. Integrate numbers into your arguments.
**Use no more than two significant digits **for all numbers in the text and exhibits (12%, 3.5%, or 0.46%, not .12480294). Less is more. Displaying too many digits makes numbers hard to read and actually obscures its value and intuition.
All exhibits you create yourself must be included in the write-up and be properly formatted. You must also include a link to all your exhibits so that your calculations can be seen and assessed. Place this link at the very beginning and be sure to grant your professor and peer tutor viewing privileges. Follow these guidelines (e.g. avoid including numbers in a calculation cell but instead, reference inputs/assumptions cells that do contain numbers; use black text for calculations and blue text for inputs).
Use Grammarly** to check your spelling and grammar**. Poor writing conveys carelessness and unprofessionalism. Review these reminders.
Write your report yourself and then you may utilize AI to enhance the readability of your report. Use the AI responsibly.
Annotated LO Appendix that includes the following:Tag 3 LO’s. (#termSheet, #securities, and a course LO of your choice). Write a focused description of how the LO is applied. It will be graded based on your analysis of the questions above.
Remember, tagging a vague usage of an LO will result in a 1-3. To get a 4, you need to have detailed explanations. Be selective and deep. In upper-level classes we want you to focus on the LOs because they are the core components of the class. Building your paper around the LOs is a much better approach than writing a paper and then shoving in LO footnotes/appendix. You may tag LOs with a footnote to make it is clear to you and the Professor where you are trying to highlight certain concepts. Everything you need to make your case that this is a good use of the LO should be in the main text.
Add a word count at the end of the assignment (exclude exhibits, footnotes, appendixes, and the bibliography).
Length:
1000-1250 (3-5 pages double spaced)
Learning Outcomes Added for Appendix
LO6_securities: Evaluate the different securities issued by early-stage companies in raising capital.
LO8_termsheet: Explain the importance of the term sheet and how it is negotiated.
For the third one choose either
#LO1_dynamics: Analyze the dynamics of innovation and entrepreneurial culture from the perspective of entrepreneurs and investors.
OR
#LO5_retention: Investigate the means by which founders and key employees are retained by startups
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