Summary: present an investment recommendation for a fintech company assume that you are a researcher for an angel investment firm, venture capital, private equity, bank— identify based on an assessment of their market opportunity, product offering, and financial situation.
Length: 8-10 pages presented in the style of an investment memorandum (Word) with accompanying charts, graphs, and diagrams; identify bibliography sources
Due: by beginning of final class on Wednesday, May 06.
Organization of memorandum
1. Background on history and purpose of company
1.1. Funding sources include history of funding and investors
1.2. Structure start up, large entity, consortium
1.3. Experience number of years operating and any changes in their operating approach or target market since inception
2. Business case for core product/solution offering
2.1. Identification of problem solved describe and graphically illustrate position in the value chain from customer perspective
2.2. Target market consumer, institutional, demographics specify size or estimation of size
2.3. Market sizing identify total size of existing market and to what extent digital alternatives have started to penetrate the market or define a new market
2.4. Market share estimate companys relative share of new market against key competitors
2.5. Revenue source fees, subscriptionand delineate how much volume the reported revenue likely represents
2.6. Differentiation from competitors — both at a macro basis and a side by side comparison (suggest tables or charts) — if company is defining an entirely new market a diagram under 2.1 is essential
3. Financial situation
3.1. Funding uses describe major use of funds for technology, market development, staffing ????
3.2. Burn rate — estimate cost of operating for next 3 6 months
3.3. Estimate timing of profitability — provide a high level pro forma of income or cash flow
4. Recommendation
4.1. Based on evidence provided in 1-3 provide a recommendation to invest, go public or seek a merging partner or buyout
