attention of at least four potential investors willing to offer a seed investment. Having just received a term sheet from Waltham Partners, a well-known East Coast venture capital firm, Aravind and Kartik were now forced to weigh their options and determine which of the four potential investors currently interested in their venture would be most appropriate for NatuRi’s future growth. Their funding decision for this stage would also impact options for later rounds of funding. The duo had to decide
Words: 8733 - Pages: 35
Walnut Venture Associates: Case Questions (HAND-IN) (1)Angel investors are affluent individuals who provide capital(money) for a business start-up. Angel investors usually receive convertible debt or ownership equity in return for their investment. Angel investors are different from venture capitalists since angels typically invest their own funds meanwhile venture capitalists manage pooled money of others in a professionally-managed fund. There are 2 forces exacerbating the trend towards the
Words: 482 - Pages: 2
Walnut Venture Associates are a group of angel investors. In 1997 the club had around a dozen individual investors, forming an “angel group”. Their primary targets are investments ranging from $250,000 to $1,000,000. This is due to the gap of capital funds initiated by the VC’s from not considering investments bellow $1 million. Also, angel investors can acquire significant equity at low cost, and help the growth of the company with their knowledge and expertise. By selecting only the most exceptional
Words: 650 - Pages: 3
equity capital. Angels will provide capital up to a couple of million dollars making it an attractive option for a second round financing run where friends and family would probably fall short and the company is not yet attractive for VC’s. For a Walnut investor there are a several issues that raise questions that must be answered. Some of these questions are about RBS’s market penetration and growth projections. Why will the customer choose to switch to RBS, and how easy is it? The answer to this
Words: 305 - Pages: 2
and industry experience is of tremendous value to startups. Some angels are more socially minded rather than financially motivated which becomes another reason for entrepreneurs to seek financing from them. Walnut was impressed with the CEO Bob O’Connor and his business focus. Also, Walnut was happy with the fact that the company had a product, sales, and earnings. From an industry perspective, RBS was in a thriving software industry and the business model was easy to get and understand.
Words: 1534 - Pages: 7
Stephen Choi MF602 March 12, 2013 Walnut Venture Associates (A): RBS Group Investment Memorandum The RBS Group’s business seems promising and I suggest investing $1 million in the business, exiting in three years, that is, at the end of fiscal year 2000-2001. Milestones While the business seems quite promising, there are certain milestones RBS will need to achieve in the following three years. First, within the next month RBS will have to hire a vice president who will focus on sales
Words: 847 - Pages: 4
Harvard Business School 9-899-097 Rev. November 19, 1998 Walnut Venture Associates (D): RBS Deal Terms It was Friday, June 5, 1998, and Bob O’Connor was headed home for the weekend. He knew it would be a busy one, for he had many decisions to make. He had been trying to raise capital for his Company – the RBS Group, a software firm – for almost a year. He felt like he was finally nearing the end of this process, but now more issues had arisen. First, his prospective investors wanted to increase
Words: 5092 - Pages: 21
Diamond Foods Accounting Scandal BACKGROUND: Founded in 1912 as a walnut grower cooperative, Diamond Food’s primary business involved buying walnuts from local California growers, processing the product, and reselling it. The San Francisco-based company converted from a cooperative to a public corporation in July of 2005, issuing its initial shares for $17. By 2010, Diamond Foods (DMND) had expanded and acquired a number of snack food companies including Kettle Brand® Chips and Pop Secret® popcorn
Words: 3150 - Pages: 13
Diamond Walnuts Kahlfanie Carabon Keller School of Management April 19, 2015 Executive Summary Today’s walnut market is growing increasingly. It is projected to increase by over 25 percent in the next 3 years, (USDA, 2014). There is a grand opportunity provided by the rise in walnut demand that come s in the form of a brand extension for Blue Diamond to extend its reach into the walnut market. This extension would be two fold. The first would be opening up production to support our walnut products
Words: 3422 - Pages: 14
1.) Cost per pound of nuts: Almonds $7500/6000 = $1.25 Brazil $7125/7500 = $.95 Filberts $6750/7500 = $.90 Pecans $7200/6000 = $1.20 Walnuts $7875/7500 = $1.05 Cost of nuts per mix: Regular mix: .15($1.25) + .25($.95) + .25($.90) + .10($1.20) + .25($1.05) = $1.0325 Deluxe mix: .20($1.25) + .20($.95) + .25($.90) + .20($1.20) + .20($1.05) = $1.07 Holiday mix: .25($1.25) + .15($.95) + .15($.90) + .25($1.20) + .20($1.05) = $1.10 2.) Let R = number of regular mix produced D = number
Words: 452 - Pages: 2
