Assignment 1: 25733 Finance for Entrepreneurs

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Students are expected to research the questions via any and all online resources. Please
ensure you provide links to online sources in your references/appendix to provide proper
attribution. Please submit an electronic copy via turnitin (uts online) and bring a hard copy
to class in week 4. There are no page limits.
Part 1 Whitepages (10%)
See attached story about Whitepages as an introduction. Answer the following questions.
1. Describe how Whitepages changed its business to become successful today. What is
its current business model?
2. Is Whitepages’ change in focus considered a pivot in keeping with the ‘Lean
Startup” model? Describe the Lean Startup model and include when/when pivots
occur in their approach.
3. The owner, Alex Algard, used Whitepages’ money to pay back investors. Is this a
Management Buyout (MBO) or Leveraged Buyout (LBO)? Describe the different
financing techniques and note any similarities/differences.
4. Identify all the risks in this financing approach.
Part 2 Instagram and financiers (10%)
Use techcrunch.com and crunchbase.com to answer the following questions.
1. What was Instagram’s pivot? Describe the business before and after their pivot.
What was the name of the company before Instagram?
2. Before the pivot, investors including Baseline Ventures and Andreessen Horowitz
participated in financing of a $500,000 seed round. How many investments and exits
has each group had? Can you identify any cultural differences between the two
groups?
3. How did the owners of Instagram exit the business? Describe the decision variables
including pointing out the risks in this exit.
Part 3 Case study development (10%)
Pick a startup that has received two rounds of financing (with the last round in 2016) and is
still operating. Do not pick the same company as any of your friends that are also taking this
class. Prepare a 800-1,000 word case study that describes the business idea and links the
funding to realistic financial metrics. Fill in a lean canvas (see leanstack.com) for the
company so you understand the company fully. Create a projected future financing plan
(estimates) tied to deliverables (metrics).
You can often find slides from startup pitches that have actual financial metrics (see
slideshare.net) but you can create your own for the actual startup if you can’t find actuals.
This part of the assignment tests your creativity and understanding of financial metrics and
their links to financing.

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