BizMovie Lesson 7. Venture Capitalist A person who invests cash in a new and innovative business A person who invests cash in a new and innovative business.

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Presentation transcript:

BizMovie Lesson 7

Venture Capitalist A person who invests cash in a new and innovative business A person who invests cash in a new and innovative business Why would a VC invest in your company? Why would a VC invest in your company? Since your company has been incorporated and “gone public”, you can sell shares of stock. The VC hopes to invest money in your company and resell the shares for a higher price than they were purchased.

Raising Capital Each company will need to raise $15-$30 BB to complete the design process. Each company will need to raise $15-$30 BB to complete the design process. You will have 15 minutes to prepare a pitch ( presentation to the VC convincing me to invest) You will have 15 minutes to prepare a pitch ( presentation to the VC convincing me to invest) Amount earned will be based on quality of pitch (see rubric) Amount earned will be based on quality of pitch (see rubric) Companies are encouraged to negotiate offers with the VC. Companies are encouraged to negotiate offers with the VC.

Planning Your Pitch Only Executive Producer and VP of Finance will make the pitch Only Executive Producer and VP of Finance will make the pitch Qualities- confidence, eye contact, product knowledge Qualities- confidence, eye contact, product knowledge Background information- team works well together, movie concept Background information- team works well together, movie concept What percentage of your company are you willing to sell? What percentage of your company are you willing to sell?

Initial Costs After investor has provided capital, determine package to be purchased and complete purchase After investor has provided capital, determine package to be purchased and complete purchase Each team member is paid $1BB for salary Each team member is paid $1BB for salary Rent of $1 BB is collected from each company for rent Rent of $1 BB is collected from each company for rent

Company Ledger VP of Finance records transactions on ledger VP of Finance records transactions on ledger Brings salaries and rent to teacher Brings salaries and rent to teacher VP of Finance will reconcile company’s cash and Stock Certificates VP of Finance will reconcile company’s cash and Stock Certificates