Entrepreneurship: Venture Finance Programme
Each question receives a mark allocation. However, you will only receive a final percentage mark and will not be given individual marks for each question. The mark allocation in the rubric is there to show you the weighting and length of each question.
Question 1 16
Question 2 4
Adherence to instructions and clarity of writing 8
TOTAL 28
3. Questions
This activity submission requires you to analyse one of the two case studies introduced in Module 1 – DrAIve or UnBlockAfrica.
To complete this activity, use:
- The PDF of biographies; and
- The term sheet for DrAIve or UnBlockAfrica.
Based on your understanding of how to close a deal and the nature of your chosen venture, read the relevant proposed term sheet. There are three options provided for how the terms can be structured, which you will need to examine in preparation for this activity submission.
Question 1
You are an independent consultant and you have been asked to provide a neutral expert opinion on the proposed terms. You should not systematically favour the entrepreneur or the investor, but instead provide an opinion on which of the three options would best serve your chosen venture overall. Pay close attention to the differences relating to allocation of equity, size of the stock option pool, dividends, and founder and employee vesting across the term sheet options.
Include a clear explanation on why you chose your term sheet option, which trade-offs matter most, and what criteria you used to make your final recommendation.
(Write 450–550 words)
Equity
Start writing here:
Size of stock option pool
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Dividends
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Founder and employee vesting
Start writing here:
Question 2
Read the biographies of the prospective board of directors, both for the investor board seat (two options given) and the independent board seat (three options given). Make a specific recommendation about who should be selected for those two board positions. Explain your choices (and why the alternatives are less suitable), and comment on the likely interdependencies between your choice of investor board seat and the independent board seat. (Write 200–250 words)