CSU San Bernardino Entrepreneurial Finance Seed Stage Financing Case Study

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Business Finance

California state university san bernardino

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Case #3 How Much and From Whom? 1. How much capital should be raised over the next 5-year period? 2. What are the funding sources to be targeted and amounts to be requested from each during the 5-year period. 3. What is the selling proposition (i.e. the investment thesis) for each round. M м. MICHIGAN ROSS SCHOOL OF BUSINESS WDI PUBLISHING case W91065 March 22, 2011 Revised January 15, 2020 How Much and From Whom? An Exercise in Seed-Stage Financing Eureka! thought Dr. Josh Dillingham, a professor of biochemistry at Michigan State University (MSU). After working for several years to identify low-cost ways of utilizing abundantly available carbohydrates from local agricultural crops, Dr. Dillingham and his graduate students had just completed an analysis of the latest tests run on a new combination of raw materials. The yield was excellent. If Dr. Dillingham and his team could achieve similar results with larger volumes, they may have a way to make a product that would be in very high demand by the pharmaceutical industry. Company Formation Based on the promising results of his tests, and with the assistance of the Michigan Biotechnology Institute, (MBI), a research institute affiliated with MSU that commercializes agricultural biotechnology product research, Dillingham decided to form a company to pursue the commercialization of his newly proven chemistry. Chiral Intermediates, Inc., (CII) was established to commercialize technologies developed at MSU for the production of chiral intermediates for the pharmaceutical, agrochemical, and food industries. A chiral intermediate is a material required for formulating synthetic pharmaceuticals to reduce or eliminate the molecules that can cause harmful side effects. COOH COOH ΝΗ. NH Source: "Chirality with Hands." NASA Astrobiology Institute. Web. 22 Mar 2011.
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Outline
Topic: Seed-Stage Financing Case Study
Thesis statement: business owners should be realistic in assessment of capital requirements and
aim to raise enough capital from investors and well wishers for starting and running a start-up
business.
1. How much capital should be raised over in the next 5-year period?
2. What are the funding sources to be targeted and amounts to be requested from each
during the 5-year period?
3. What is the selling proportion (i.e. the investment thesis) for each round?
4. References


Running head: SEED-STAGE FINANCING CASE STUDY

Seed-Stage Financing Case Study
Student’s Name
Institutional Affiliation
Date

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SEED-STAGE FINANCING CASE STUDY

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Seed-Stage Financing Case Study
How much capital should be raised over in the next 5-year period?
Being one of the promising pharmaceutical intermediate technology companies, Chiral
Intermediate Inc should raise sufficient capital to sustain its operations. However, since it is a
new start-up organization, it may experience investment challenges. Essentially, issues in
investment decisions may arise from the fact that as a new company, it has not developed to the
capacity of outlining its earning portfolio that indicates its future potential to grow and expand
(WDI Publishing, 2020). Ideally, investors look at factors such as the current financial position
of a company and its past earnings before making investment decisions in a particular company.
Ideally, investors do this analysis to evaluate the risks or benefits of a particular investment.
Before deciding on how much that Chiral Intermediate Inc should raise in ...


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