BUS 314 Lecture Notes - Lecture 5: Capital Structure, Product Market, W. M. Keck Observatory

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 314
• Professor: Andrew Harries

Document Summary

Numerous assumptions and the outputs are only as good as the assumptions put in. Can also be overly optimistic about the potential of your business = tunnel vision. Total addressable market by going online (stats canada: tam (total available market, after knowing who your target market is (customer persona, e. g. Types of security: what are investors going to get from you, common share (basic building block) Increasingly offered instead of options: represent the granting of a block of common shares rather than options, but typical vesting profile, they"re great because , less dilutive than options ona fully diluted basis. You have no: customers, revenue, cash intellectual property. But you should have: problem worth solving, validated solution, measurable market, founder-market fit. Team cred, founder market fit important in phases 1 &2. Customer traction dominates in phases 2 & 3. Venture funds think in terms of 10x return*