Project #4 -Understanding Financials - Team
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Project #4: Understanding Startup Financials
Team Project – 100 Points
80 points Team / 20 points Individual
For this project you will analyze a pitch by entrepreneurs on the television show Shark Tank to understand how financial information can tell a story about the status, health, and viability of a startup. You will then use critical thinking skills to determine whether you would invest in the business. This project will help you learn to communicate business financials to investors, and to understand what investors are looking for when they listen to pitches and evaluate startups. The objective of this project is to enable you to: 1.
Interpret and create financial statements. 2.
Examine financials to determine the health and viability of a startup.
3.
Consider what key metrics are important to investors.
4.
Practice evaluating whether a startup venture is good investment opportunity. 5.
Understand how the Business Model Canvas can be of value in evaluating a company.
What you need to do:
1.
Watch an episode of Shark Tank.
a.
Select one pitch to examine for this project. Describe the business, the founders, and the reason(s) they are seeking investment.
b.
How much do the founders believe their business is worth? Did the Sharks (investors) agree on the value of the company? 2.
Select one pitch, identify and calculate the following financial indicators at time of the broadcast:
a.
Sales revenue (total $ in sales) at time of broadcast.
b.
Sales volume (# of units sold)
c.
Item price
d.
Item cost
e.
Profit margin
f.
Projected future sales (units) and revenue ($)
g.
Conduct a break-even analysis
3.
What additional information do you need to make a proper assessment of the company? What financial information is missing?
4.
Answer the following questions:
a.
If a Shark were to take the original offer, how long would it take for him or her to break-
even on the investment? (Show your calculations)
b.
Do you think the company is a good investment? Justify your answer using the financial information you gathered. c.
Did you agree with the deal that was made between the entrepreneurs and the Sharks (or
not made)? Why or why not?
5.
Back up your responses to the questions above with solid analyses and assumptions.
6.
Since the episode, is there any additional information as to whether the start-up has succeeded or failed?
7.
Prepare a PowerPoint or Google Slides presentation and submit to Brightspace.
8.
In person team presentation should be 10 minutes or less
GUIDANCE FOR PRESENTATIONS
1.
Submit to Brightspace.
2.
Team presentation where each team member must speak for team combined presentation of 10 minutes or less.
3.
Make sure your group members names are on first slide along with Team #.
4.
Speak in a natural voice and try to avoid reading.
5.
Present in a confident manner to be credible and persuasive.
6.
Make sure and list the year, season, and episode you used for the presentation.
7.
Complete the Business Model Canvas watching the episode.
EVALUATION RUBRIC – Team Total Points 100
How well did you meet the requirements?
Maximum
Points
Overview of company, pitch and request for funding
Identified financial indicators listed above
Identified gaps in financial information Answered questions about the health and viability of the company, as well as its
attractiveness as an investment. Completed Business Model Canvas on Company at time of airing on Shark Tank
Demonstrated solid analyses and sound assumptions
Individual Presentation
10
20
10
10
20
10
20
Total
100
BASIC POINT DEDUCTIONS
POSSIBLE POINT DEDUCTIONS
Max
Points
-
No name first and last name on the cover slide -
No name individual slides and charts -
Overtime – 1 point deducted for each 30 seconds’ overtime
-
Spelling errors
-
Sources not cited correctly
-
Do not complete Business Model Canvas
-
Attend presentation and personal presentation skills
5
5
10
5
5
20
20
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