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.
Present an investment recommendation for a fintech company
Summary: present an investment recommendation for a fintech company. Firstly, assume that you are a researcher for an angel investment firm, venture capital, private equity, bank. Secondly, 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
Organization of memorandum:
1. Firstly, Background on history and purpose of company
1.1. Secondly, Funding sources – include history of funding and investors
1.2. Thirdly, Structure – start up, large entity, consortium
1.3. Fourthly, 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. Firstly, Identification of problem solved. Secondly, describe and graphically illustrate position in the value chain from customer perspective.
2.2. Secondly, Target market – consumer, institutional, demographics – specify size or estimation of size
2.3. Thirdly, 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. Fourthly, Market share – estimate company’s relative share of new market against key competitors
2.5. Further, Revenue source – fees, subscription……and delineate how much volume the reported revenue likely represents
2.6. Also, Differentiation from competitors — both at a macro basis and a side by side comparison (suggest tables or charts). Additionally, if company is defining an entirely new market a diagram under 2.1 is essential
3. Financial situation
3.1. Firstly, Funding uses – describe major use of funds for technology, market development, staffing ????
3.2. Secondly, Burn rate — estimate cost of operating for next 3 – 6 months
3.3. Thirdly, Estimate timing of profitability — provide a high level pro forma of income or cash flow
4.1. Lastly, Based on evidence provided in 1-3 provide a recommendation to invest, go public or seek a merging partner or buyout