West Virginia University Business Discussion
Description
1. How attractive is the company to prospective investors?
2. Does the term sheet for the Series A round generally favor the entrepreneur (Mannix) or the VC
investor (WVP)? Be sure to cite specific terms and features of the contract to support your
opinion.
3. Before the Series A round, what is OptiGuard’s postmoney value? After the Series A round, what
is the pre- and postmoney value if the offer is accepted as proposed?
4. What are the implications for WVP if another investor offers to provide OptiGuard an additional
$7.8 million in equity after the Series A round at a price of $8 a share? At $3 a share?
5. What are the implications to WVP if it has a participating versus conventional liquidation
preference and OptiGuard is sold for $15 million in three years?
6. If you were Mannix, would you accept WVP’s offer as proposed, or attempt to negotiate certain
terms of the offer? If you choose to negotiate, what adjustments would you seek to make?
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