Spiffy

In: Business and Management

Submitted By ksauk
Words 3878
Pages 16
This report deals with a group of MBA students that have founded SpiffyTerm, Inc. They are figuring out what to do with negotiations with various venture capitalists. They were spending a particular amount of time with a term sheet they received from Vulture Ventures. They decided to focus on understanding the term sheet in order to conclude what valuation and terms they should be negotiating for. Annabella, Krishnuvara, and Bob needed to start by deciding on what they believed an appropriate valuation would be. The group decided they would need to raise $4 million at the current time. To start they allocated 5 million shares to themselves. Along with the 5 million shares they decided to put aside 1.5 million shares for any potential future employees. The group also decided that after 2 additional years they would need to raise another $2 million. Venture Vultures offered to invest $4 million at $1 a share. They did not fully believe this was the best valuation however. Because of this they wanted to create a model that would show an appropriate valuation. The group of MBA students believed SpiffyTerm, Inc. was capable of releasing an IPO after 4 years of approximately $80 million. They did take into consideration the potential risks of their venture. Because of this they came up with a discount rate of 45%.
To start, defining what a term sheet is and its role in this circumstance. A term sheet is a bullet-point document that outlines the material terms and conditions of a business agreement. A term sheet can be either binding or non-binding. Within the context of venture capital financing the term sheet usually includes conditions for financing a startup company. Crucial offering terms tend to include the amount raised, price per share, pre-money valuation, liquidation preference, voting rights, anti-dilution provisions, and registration rights. The term…...

Similar Documents

Reflections: "Cathedral"

...to judge by appearance. As the story went on, he began to realize that he himself was blind due to a lack of insight about blind people. A few clues or hints that was presented in the story that made way for the theme to become evident were for one, the narrator’s first impression of the blind man, Robert. “This blind man, feature this, he was wearing a full beard! A beard on a blind man! Too much, I say.” [ (Clugston, 2010) ]. This was the first of what was to open his eyes to the fact that the conventional description of the blind was not always conceivable. “He wore brown slacks, brown shoes, a light-brown shirt, a tie, a sport coat. Spiffy….. But he didn’t us a cane and he didn’t wear dark glasses. I’d always thought dark glasses were a must for the blind.” [ (Clugston, 2010) ]. Again here it is seen that the blind man dressed spiffy, matched, was independent and was not ashamed of his condition. The quote made by the blind man, “I am always learning something.” [ (Clugston, 2010) ] was the main hint to the discovery of the theme. Description of the characters here was a great indication of what the theme entailed as well. The narrator, from the point of view that was presented here told a lot of him. The comments he made, the descriptions of the actions that he displayed, the thoughts that ran through his mind as he told the story, described him as a very ignorant and shallow minded person at the time. He would describe himself in the situation as awkward and......

Words: 1151 - Pages: 5

The Us Financial Crisis and Bangladesh

...their poor credit ratings and low incomes. The risk of these loans have been passed on to investors around the world who are eager to buy securities carrying higher yields rather than those offered by safer investments such as US treasury bonds. According to an article by Knowledge @ Wharton “Mortgage-backed securities are created by assembling thousands of loans into bundles and creating a series of bonds that pass borrowers' principal and interest payments on to the bond owners. Typically, there is a series of bonds of increasing degrees of risk reflecting the borrowers' creditworthiness. The riskier bonds pay the highest yields but are the first to lose value if borrowers fall behind in payments.” The sub-prime risk has been packaged as “spiffy nouveau products” such as credit default-swap (CDS), collatorized default obligation or special investment vehicle etc. Warren Buffet has called the derivatives “weapons of mass destruction” for a reason. When you are winning; it seems a windfall gain but when you start to lose the effect is equally big due to huge leverage they carry. These subprime loans have adjustable interest rate. In between 2003 to 2007, the one year treasury rate rose to 5% from just over 1.25%. The trouble started when the borrowers began to default on their loan facing stiff monthly mortgage payment. In a nutshell banks and Wall Street firms made trillions of dollars in loan they shouldn’t have. Now they have to write off the losses and some of them no......

Words: 1010 - Pages: 5

Steve Jobs

...us actually know of what went on behind the scenes; how did the home computer industry start and how much of it was due to the drive and vision of Steve Jobs. • Summary On a warm June day in 2005, Steve Jobs went to his first college graduation - as the commencement speaker. The billionaire founder and leader of Apple Computer wasn't just another stuffed-shirt businessman. Though only fifty years old, the college dropout was a technology star, a living legend to millions of people around the world. In his early twenties, Jobs almost single-handedly introduced the world to the first computer that could sit on your desk and actually do something all by itself. He revolutionized music and the ears of a generation with a spiffy little music player called the iPod and came with it was a wide selection of songs at the iTunes store. He funded and nurtured a company called Pixar that made the most amazing computer-animated movies such as Toy Story, Cars, and Finding Nemo - bringing to life imaginary characters like never before. Though he was neither an engineer nor a computer geek, he helped create one gotta-have-it product after another by always designing it with you and me, the actual users, in mind. Unknown to those listening to him that day, more insanely awesome technology was in the works, including the iPhone, which would put much of the power of a computer neatly into the palm of your hand. The father of four would be repeatedly compared with......

Words: 890 - Pages: 4

Science

...and it was a colored movie, the previous movie was like always a silent movie and black and white. After all that nifty fun, it was time to go home because it was owl and women’s are not allowed to hang out late night. So Drake was going to drop me in his Jalopy, I was sitting in his car and he played music my favorite jazz music. It was time to leave, but a date without a kiss would be baloney so I was staring his kisser and was wondering about “when is he going to kiss me” we reached my home and guess what we kissed. I was scared about my dad coming out so I said him to scream but I wanted to be with him for a bit longer, oh it was a swell day. And remember you had a crush on Cavin the big cheese guy with cheaters, our classmate; his spiffy cloths were bee knee’s. Anyway have to go. Hope to see you soon. Your loving friend, Jannath...

Words: 422 - Pages: 2

Spiffy Inc

...| SpiffyTerm. Inc | COMM 486X | | I hereby declare that I performed this assignment on my own, without the help of any other people | Question 1 1a. These Assumptions produce Round 1 Pre Money Valuation of 13.1 Mil and Post Money of 17.1; and round two Pre money Valuation of 36 Mil and Post Money Valuation of 38 Mil. 1b. For the different scenarios, and sensitivity analysis, please see below: | Investment | Pre Money | Post Money | First Round | $4,000,000 | $12.7 Mil | $16.7 Mil | Second Round | $3,000,000 | $35.0 Mil | $38.0 Mil | | | | | First Round | $6,000,000 | $12.1 Mil | $18.1 Mil | 1c. If Wolf had used the same assumption in the valuation as the founders, he must’ve used a IPO value of $50.6 Mil. 1d. If Wolf used the $1/Share, and $80 Mil valuation, he must’ve used an implicit discount rate of 63.32%. 1e. If we follow the $80 Mil valuation, and 63.32% assumption, but double the amount shares for owners, the investors then should not be paying at $1 per share, but rather $0.50 per share. Wuz should not be an MBA Student. 1f. No, what vulture ventures hope to buy is the Participating Preferred Shares, which act as a loan to the company, at a rate of 8% for interest, which would be paid back in the form of dividends. The remainder amount that was not paid back as dividend, will act as equity and will receive the shares’ equity. Question 2 2a. See the founder’s NPV value according to each founder | Expected NPV | Annabella |...

Words: 1255 - Pages: 6

Fast Food Nation

...the concept was enormously popular and others quickly adopted the business model with only variations in names, restaurant themes and individual recipes. Social Effects. Social shifts in America have been played out in the fast food industry just like the larger society, but with some surprising twists. Much like other low-wage, low-skilled interactive service jobs, fast food employment is still largely regarded as being “women's work”; however, this has not always been the case. According to Talwar, “The fast food industry in the 1950s and 1960s was dominated by men” (p. 90). In his autobiography, the founder of the McDonald’s franchise system, Ray Kroc, described employees of the very first McDonald's as being “all men, dressed in spiffy white shirts and trousers and white paper hats” (in Talwar, p. 90). According to John Love’s comprehensive study of the McDonald's Corporation in the 1980s, the key to the industry at that time (before 1960) was the “all male crew”; further, Kroc initially decided not to hire young women to work behind the McDonald's counter because, he claimed, “They attracted the wrong kind of boys” (in Talwar, p. 90). Since the 1970s, more and more women have been employed in the fast food industry with their numbers largely increasing to parallel the adoption of more advanced technology the subsequent emphasis on service and the social and monetary devaluation of fast food jobs. In fact, since the early 1970s, the buying power of minimum wage......

Words: 2578 - Pages: 11

Paul Milenski - Tickits

... When he it out giving fines he does not think about how hard his life is. When the rain starts to pour, he knows that he has to go home – home to his mother. Toby’s home is described very pessimistic. “Inside there were smells of cabbage, cigarette smoke, spilt alcohol. The entry was dark, lit intermittently with a pale of light from the television (p. 2. l. 18-19)” Toby feels ad a stranger in his own home. The mother does not care about him. Milenski has chosen to include two very different characters in this short story – the mother of Toby and patrolman McVee. The differences between the two characters are proven in several text examples. Mcvee treats Toby with respect. He treats him like an equal human being. “Very nice, Toby. Spiffy, Mcvee said” (p. 2. l. 1) When Toby is with Mcvee he forgets how wrong everything in his life is. When he is with him on the streets giving fines he finds a meaning with life. “Tobu raised his chin again, moved along (p. 2. l. 2)” Mcvee does not think of Toby as a handicapped. He treats him well, and it gives Toby self-confidence. Toby is indeed in lack of self-confidence. We get an idea why at the end of the story. One quote represents, which thoughts are inside Toby’s mother head. “Toby you goddamn nut! (p. 2 l. 31)” How can we use “TICKITS” in our lives? It gives an insight in a life, which I am not familiar with. It gives me some sort of understanding. If I had met Toby on the street I think I would have laughed, thinking he was...

Words: 1297 - Pages: 6

Cathedral

...and their guest, the blind man. The only information we get about the husband comes from his actions and thoughts. They let us know how he thinks a blind man should act “My idea of blindness came from the movies. In the movies, the blind man moved slowly and never laughed. Sometimes they were led by seeing-eye dogs.” From these thoughts we learn about the narrator’s prejudice and preconceptions. The husband has a lack of sympathy for their guest who is blind and has lost his wife. Through most of the story, the narrator refers to Robert as “the blind man”. This indicates that the narrator don’t see him as a normal human being, but only as a disabled man. Robert, the blind man, is in his late 40s. He is muscular, bald, has a beard and is spiffy. To much regret for the husband, Robert doesn’t wear sunglasses “But he didn’t use a cane and he didn’t wear dark glasses. I’d always thought dark glasses were a must for the blind. Fact was, I wished he had a pair.” It both surprises and irritates the narrator that Robert doesn’t match the preconceptions he has. The wife is happy about Robert visiting them. She used to work for him and sees him as a human being instead of a disabled man. She keeps her mind open and is very enthusiastic. At the end of the short story the narrator and Robert watch and hear something about medieval cathedrals. The narrator describes what cathedrals look like, but Robert can’t imagine it. He asks the narrator to draw the cathedral instead so he can feel......

Words: 691 - Pages: 3

Autobiography

...by my junior year of high school I couldn’t take it anymore. It was my third school in three years with a new set of dull classes, new overly eager teachers, and a completely new city in which I had heard been described as “a bubble” where everyone absolutely “loves to live” and no one ever leaves. Yet here I was three weeks in this city and I just wanted to get out. It was all very cliquey with the students, but also the teachers. Good grades on my assignments were few and far between but I just couldn’t find the drive to start all over again and put my head into the work; I stopped caring. Labor Day weekend had come faster than I anticipated and I decided it was time to explore more of The Lone Star State and went on a drive in my spiffy white Honda. I was driving, just me, myself, and I with the windows down hearing the choppy wind distribute through the car while little wispy pieces of hair attacked my face. Driving alone like that is just a certain kind of serenity that needn’t an explanation. As I was driving I was thinking of what could possibly make this mini road trip better, and of course the answer was, a crisp, fresh box of Mike N Ikes. I was making my way down the feeder to find the nearest convenience store. Then I saw him. I passed him in the street. He was carrying what seemed to be his whole world in a cluster of carrier bags, two or three to each hand. He looked so very sad, and tired, and walked slowly with a medium sized dog that appeared......

Words: 1002 - Pages: 5

Tickits by Paul

...with his mouth, it tells us that Toby is probably handicap. The indirect information we get from the narrator’s description of setting, Toby’s notes and from dialogue: “On the yellow paper Toby had printed in red ink “PRAKING MISTEAK” and signed his name “TOBY” in a childish-looking hand.” “How’s it going, Toby?” McVee said. Toby pulled out his pad, showed it to McVee. “Lots of business, eh, Toby?” Toby put his pad back, nodded. His eyes rolled, looked tortured. “Yes, Toby, it’s a bitch,” McVee said. Toby looked at McVee’s shoes. Except for a single smudge, they were shiny, black. Toby bent down, rubbed off the smudge with his hand. “Thanks, Toby,” McVee said. Toby caught McVee’s eye, looked down at his own sneakers. “Very nice, Toby. Spiffy,” McVee said. Toby raised his chin again, moved along.” These sentences show us that Toby is handicap and by using his yellow paper, which is the only way for him to communicate with people, like McVee who he meets....

Words: 373 - Pages: 2

Why We Hate Hr?

...employees because it has proven its business mettle Betty Lou Smith, the company's vice president of corporate HR, began investigating the connection between employee turnover and product quality. Divisions with the highest turnover rates, she found, were also those with damaged within six months of being hired. Smith's staffers learned that new employees were leaving for a variety of reasons: They didn't feel respected, they didn't have input in decisions, but mostly, they felt a lack of connection when they were first hired. "We gave them a 10 by creating a mentoring program that matched new hires with experienced workers. The latter were suspicious at first, but eventually, the mentor positions (with spiffy shirts and caps) came to be seen as prestigious. The six damaged "We don't wait to hear from top management," Smith says. "You can't just sit in the corner and look at benefits. We have to know what the issues in our business are. HR has to step up and assume responsibility, not wait for management to knock on our door." But most HR people do. Hunter Douglas gives us a glimmer of hope within ineffective human caring people with their ears to the ground, who are sensitive to cultural nuance yet also understand the business and how people fit in. Professionals who move voluntarily into HR from line positions can prove especially adroit, bringing a profit At Yahoo, Libby Sartain, chief people......

Words: 3530 - Pages: 15

Industrial Relation

...organization man. Not only does the administrator have conflicting obligations, but s/he is just as cussedly perverse, opinionated, and emotional as the rest of us! Cooper presents the concept of the public interest, above, as something that is hotly contested and unclear, even something that sissy “public administrationists” i.e. folks like me “have shown little sustained interest in” (p. 91; see also Kernaghan 1972, p. 594, and Jos 1990, pp. 228-9). Subjective responsibility, though, is something he seems far more comfortable with. Not me, so Page 5 of 8 PAD 6436 lecture nine we‟ll develop this further as we go. In my opinion, Waldo‟s competing ethical obligations is as good a presentation of it as we need for now, despite Cooper‟s spiffy graphic on page 95. Values. Values (Kernaghan, pp. 587-8, see also pp. 590-1) clearly complicate subjective responsibility, as one person‟s idea of subjective responsibility may not be consistent with another‟s. Refer back to Table 1, in Lecture 2. As shown, the US tends to have a much more individualistic culture than most other countries. So public policies that raise revenue from those with more income, to promote the general welfare by doing unto the least among us, are more likely to be accepted in a less individualistic country, like France, Sweden, or especially Japan. In the United States, though, this would be seen as un-American by many. Organizational socialization. Overcoming these problems requires strong......

Words: 3289 - Pages: 14

Junk

...earrings. As for their hair, women often got permed curls which had lots of volume, almost looking frizzy, and did their makeup in bold-neon eyeshadow all over their lid, just under their eyebrows. Men accessorised with sunglasses, head and wristbands, and sometimes carried around boomboxes. The popular male hairstyle was the mullet. The mullet was shorter in the front and longer at the back “Business in the front, party in the back.” - Billy Ray Cyrus Slang The slang in the 80s were iconic and you can still hear these slangs in today’s society. Some well known slang from the 80s include: 1st, 2nd, 3rd Base, 411, BFF, Bite Me, Bomb, Bounce, Cheeuh, Chill, Couch Potato, Dank, Fricking, Fugly, Get Bent, Juiced, Legit, Narc, Noob, Spazzing, Spiffy, Stud, Thongs, Tits, Trippin’, Wannabe, Whatchu Talkin Bout?, What’s Crackalackin’?, and Yikes. 3 Society, Culture, Women, & Minority Groups - Matthew Jen Terry Fox April 12, 1980, Terry Fox Starts the Marathon of hope in order to raise money on cancer research and raise awareness for cancer. Terry had to stop running on September 1st, 1980 because the cancer spread to his lungs. Refugee Crisis In 1978, Canada made a commitment to accept more refugees known as the Immigration Act. However, many people would make false claims about being a refugee to get quick access into Canada. It is estimated that in 1986, 10,000 people falsely claimed refugee status the get into Canada. Immigration In the 1980s,......

Words: 1621 - Pages: 7

Canda Through the Decade 80s

...women often got permed curls which had lots of volume,  almost looking frizzy, and did their makeup in bold­neon  eyeshadow all over their lid, just under their eyebrows. Men  accessorised with sunglasses, head and wristbands, and  sometimes carried around boomboxes. The popular male  hairstyle was the mullet. The mullet was shorter in the front  and longer at the back “Business in the front, party in the  back.” ­ Billy Ray Cyrus     Slang  The slang in the 80s were iconic and you can still hear these  slangs in today’s society. Some well known slang from the 80s  include: 1st, 2nd, 3rd Base, 411, BFF, Bite Me, Bomb,  Bounce, Cheeuh, Chill, Couch Potato, Dank, Fricking, Fugly,  Get Bent, Juiced, Legit, Narc, Noob, Spazzing, Spiffy, Stud,  Thongs, Tits, Trippin’, Wannabe, Whatchu Talkin Bout?,  What’s Crackalackin’?, and Yikes.   3  Refugee Crisis  In  1978,   Canada  made   a  commitment  to  accept  more  refugees   known  as the Immigration  Act. However, many people would make  false  claims about  being  a  refugee  to get quick access into Canada.  It  is   estimated  that   in  1986,  10,000 people falsely  claimed refugee  status the get into Canada.    Immigration  In the 1980s, there was a huge  boom in  immigrants  from Asia,  Africa  and  Latin  America.  Even  in   the  1980s,  these  people  were  racially   discriminated against. A poll stated that  the most......

Words: 1623 - Pages: 7

Essay

...much as one year in advance. One of the film's best moments of deliciousness comes with the revelation that Yoshikazu, rather than his father, made the sushi that won the Michelin inspectors over; so much for working humbly in the old man's shadow. And one of its surprises comes when Jiro speaks with admiration bordering on reverence for the French chef Joel Robuchon: "If I had his tongue and nose…" he says wistfully. If he did, then what? Would his sushi taste like sushi at all? DVD Focus 'Pleasantville' (1998) In Gary Ross's debut feature, teenage fraternal twins played by Tobey Maguire and Reese Witherspoon are magically transported from present-day suburbia to a picture-perfect town in the black-and-white world of 1950s television. Spiffy Studebakers and Packards stand on driveways next to spotless split-levels. Fathers always know best, and every player sinks every shot during high-school basketball practice. For a while I thought Mr. Ross would sink every shot too; instead, he sinks his premise by turning it into a leaden political parable. Until then, though, "Pleasantville" sparkles with poetic notions as color spreads throughout the town. 'The Truman Show' (1998) Like the battling kids in "The Hunger Games," Jim Carrey's Truman Burbank is trapped in an artificial environment, but he doesn't know it, even though his whole existence is being played out on a vast television set, which he mistakes for the real world. "The Truman Show," directed by Peter Weir from a......

Words: 1705 - Pages: 7

IMDb: 6 HD Kung Fu Masters 3 | The Nun (2018) CAM IMDb 6.6 Genre: Horror; Mystery; Thriller; A priest with a haunted past and a novice on the threshold of her final vows are sent by the Vatican to investigate the death of a young nun in Romania and confront a malevolent force in the form of a demonic nun. | Ramji Gulati