Case study: Angel Investments 1. Background Angel Investments plc (AI), is based in Warsaw, Poland. It provides finance for start-up or young companies which need capital to develop their businesses. AI is run by a group of extremely rich people of various nationalities who made their fortunes in the computer and financial services industries. They enjoy the excitement of working with start-ups and small companies, and believe that Central and Eastern Europe offers outstanding opportunities for inve invest stme ment nt.. They They are are will willin ing g to take take risk riskss and and back back proj projec ects ts whic which h seem seem unus unusua uall or extraordinary. However they also expect to make money, usually by taking a stake in the business or a share of the profits. A team team of AI inve investo stors rs is curre current ntly ly cons consid ider erin ing g seve several ral prop propos osals als.. Afte Afterr hear hearin ing g presentations from individuals and companies, AI will decide which projects it will invest in, and how much money it will give to each one. They have £5.5 million to invest in the projects.
2. Roles: • •
AI Investors Entrepreneurs
3. Possible project proposals New magazine You need to finance the first edition and launch of a new magazine. Amount required: £2.5 million, to finance production, editorial, office administration, distribution costs and promotion. New sport league league You have a background in sport and public relations. You want to set up a league for a sport which at present is not well-known, but could become very popular Amount required: £2.5 million to finance administration and promotion, endorsements of the league by famous sports people, travel and legal costs. Your own idea for a product or service You have an idea for a product or service. You have not yet written a business plan, but the AI team are willing to listen to your presentation. Amount required: At least £3 million, to finance development, production, personnel, launch and marketing costs. New sport league league You have a background in sport and public relations. You want to set up a league for a sport which at present is not well-known, but could become very popular Amount required: £2.5 million to finance administration and promotion, endorsements of the league by famous sports people, travel and legal costs.
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Flotation tank centres At these centres, stressed business people can float in tanks and forget about their problems. Other services will include advice about diet and skin care, a solarium, and sunbeds, etc. Amount required: £2 million, to finance premises, equipment, staff and promotion. Airships Your company wants to manufacture airships to advertise companies' products and to entertain potential customers, etc. Amount required: £5 million, to finance research and development costs, production, and marketing.
Note: Students may choose a proposal from the list above, or may come with their own proposal.
4 a. Briefing Notes: AI Investors Before the meeting:
1. Study the proposals that the entrepreneurs have chosen and discuss which appeal to you most. Consider which are the most risky and which have the greatest potential profits. 2. Prepare questions which you wish to ask each person/company. During the meeting:
1. Listen to the presentation of each person/ company. Ask questions to help you decide which projects to invest in. 2. Discuss the projects. Decide which to invest in, and how much money you will give to each. Remember: You have maximum limit of 5.5 million pound to invest, but can invest less.
4 b. Briefing Notes: Entrepreneurs Before the meeting:
Choose one of the proposals or present your own idea for a product or a service. 3. Prepare a presentation of your product or service. Use the Key Points as a guide for structuring the presentation. 4. Your aim will be to persuade AI to give you the money you need. Try to predict what questions they will ask you. During the meeting:
3. Give your presentation and answer the AI team's questions.
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4. While waiting to hear AI's decision concerning your request for finance, analyse your presentation objectively: a) Was your presentation effective? b) Do you think you will be successful? c) How well did you answer their questions? d) What problems did you have, if any?
5. Key points for product presentations 1. The Business A description of the business -What does it do? Who is it for? Brief details about the team (age, education, experience, etc.). 2. The Product or Service A brief description – including artwork, if possible. What are the advantages of the product or service? What need does it fill? What are its unique features? 3. Marketing Who are the existing or target customers? Who are the competitors or possible future competitors? What are the competing products, if any? What about pricing policy? How will the product or service be launched and promoted? What are the selling and distribution methods? 4. Finance How much finance is required and for what purposes?
Deadline : 9 November 2012 Simulation: 18:00 – 19:30 19:30 – 20.55
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