MSc Management - Finance

Stream
Financing Entrepreneurial
Initiatives
Final Assignment
May 2015 Term

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PART A
Please read the following instructions carefully.

General
1. You must submit an electronic version of the paper in MS Word format.
This is to be uploaded into the VLE via the link provided to you by the
lecturer. If you have used an MS Excel file to do your calculations,
including formulae, please copy it and embody it into the Word
document.
2. Do not send the paper via an email. Under no circumstances will a
paper be accepted when emailed to any member of the faculty.
3. The late submission rules follow the General Academic Regulations.

Referencing
1. You need to follow a proper referencing system in your paper. The MSc VLE
provides a brief on the Harvard Referencing System that you need to
follow.
2. You also need to do a full bibliography of your sources.

Number of words
1. For coursework, the submission word limit is 2,500 words. You must
comply with the word count guidelines. You may submit LESS than 2500
words but not more. Cover page, Tables, diagrams, bibliography,
appendices and headings are NOT included within word count
calculations. You must specify total word count on the front page of your
report.
2. At the end of your paper, you need to write:
I, SRN XXXX, declare that this work contains XXX number of words.

Pass mark
The pass mark for this assessment is 50%. If this is not your first attempt at this
assessment the maximum mark you can obtain is 50%.

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Overall contribution to your final mark

This paper contributes 100% to your overall final mark in the module.

PART B: Description of the Assignment

Case Study: The Renovo Story: Venture Capital at the Cutting Edge

Please answer the following questions:

Your assignment should answer the five questions below only

1. Assess the business opportunity in these areas:

Market Opportunity
Technology
Management
Business Plan

Would you invest based on these factors? Explain your decision.

(30 marks)

2. What are the key issues in assessing the financial value of early stage,
biotechnology companies? Critically analyse the risks.
(20 marks)
Student Guidance
Questions (a) and (b) require students to examine the business opportunity using the key skills. This assignment is
assessing ability at level 7. Additionally at this level you should show evidence of being able to relate the content
of this module with what you have learned on other modules. The work involves an element of research: You may
use relevant information from the Renovo case study as well as independent research from journals, books,
articles and other trusted sources, both from the VLE and elsewhere to help you prepare this coursework. Ensure
that all sources are fully referenced using the Harvard system. Failure to do so will involve the loss of marks.
Both answers in Part A should not exceed 1,250 words in total and should cite any relevant supporting evidence
using an appropriate form of academic referencing.

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3. From the VC perspective, what is a fair pre-money valuation for the

8M investment? What would the post money valuation be and what %
equity would you hold?
(20 marks)
4. From the VC perspective, explain why it would be wise to attach any
milestones to the
investment. What would they be?
marks)

(20

5. From the founders and the Universitys perspective , what might they dislike in
the VC term
sheet? How would they try to negotiate the terms?
(10
marks)
Any results should be analysed and evaluated. A portion of the marks in the
calculation questions are attributable to the analysis accompanying the numbers.
In your answers, in addition to the information from the Case Study, please apply
the concepts from the appropriate areas of financial and economic theory,
discussed during this and all previous modules during your course. Your answers
should include appropriate numerical data and, if appropriate, charts/graphs.

End of paper

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