Present an investment recommendation for a fintech company

Summary: present an investment recommendation for a fintech company – assume that you are a researcher for an angel investment firm, venture capital, private equity, bank— identify based on an assessment of their market opportunity, product offering, and financial situation.

Present an investment recommendation for a fintech company

Summary: present an investment recommendation for a fintech company. Firstly, assume that you are a researcher for an angel investment firm, venture capital, private equity, bank. Secondly, identify based on an assessment of their market opportunity, product offering, and financial situation.

Length: 8-10 pages presented in the style of an investment memorandum (Word) with accompanying charts, graphs, and diagrams; identify bibliography sources

Organization of memorandum:

1.       Firstly, Background on history and purpose of company

1.1.    Secondly, Funding sources – include history of funding and investors

1.2.    Thirdly, Structure – start up, large entity, consortium

1.3.    Fourthly, Experience – number  of years operating and any changes in their operating approach or target market since inception

2.       Business case for core product/solution offering

2.1.    Firstly, Identification of problem solved. Secondly, describe and graphically illustrate position in the value chain from customer perspective.

2.2.    Secondly, Target market – consumer, institutional, demographics – specify  size or estimation of size

2.3.    Thirdly, Market sizing – identify total size of existing market and to what extent digital alternatives  have started to penetrate the market or define a new market

2.4.    Fourthly, Market share – estimate company’s relative share of new market against key competitors

2.5.    Further, Revenue source – fees, subscription……and delineate how much volume the reported revenue likely represents

2.6.    Also, Differentiation from competitors — both at a macro basis and a side by side comparison (suggest tables or charts). Additionally, if company is defining an entirely new market a diagram under 2.1 is essential

3.       Financial situation

3.1.   Firstly, Funding uses – describe major use of funds for technology, market development, staffing ????
3.2.   Secondly, Burn rate —  estimate cost of operating for next 3 – 6 months
3.3.    Thirdly, Estimate timing of profitability  —  provide a  high level pro forma of income or cash flow

4.       Recommendation

4.1.    Lastly, Based on evidence provided in 1-3 provide a recommendation to invest, go public or seek a merging partner or buyout

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