The lesson begins by guiding students through their financial model to determine the uses of and sources of capital in a start-up application.
- Students will learn about funds, debt, equity, and financing, and will create a capital structure document for their company
- Students will estimate the value of their companies
- Students will identify the components of an investor proposition statement for their companies and create an investor proposition statement, including investor highlights
Alternatives to Investments Activity
Half of the class will examine the growing trend of crowdfunding a business enterprise by completing each of the steps below:
- Search for a business on kickstarter.com
- What do they do?
- How much did they seek to raise?
- How much did they actually raise?
The other half of the class will examine businesses that have “bootstrapped” their business to profitability and over a million dollars in revenue by completing each of the steps below in a short slide presentation.
- Choose a case study from: Bootstrapped, Profitable, & Proud
- What does the business do?
- What is their “bootstrap” story
- What lessons can be learned from this example?