Listening Vocabulary. You’ll hear Ed Coombes, of Campbridge Capital Partners, talking about his work in raising funds for new companies

You’ll hear Ed Coombes, of Campbridge Capital Partners, talking about his work in raising funds for new companies. This exercise defines some important words and expressions used in the interview. Which word or expression is defined in each case?

1. The possibility of providing a new product or service to satisfy particular needs.

A market capitalization B market opportunity C market penetration

2. People with a lot of money at the disposal.

A capitalists B entrepreneurs C high net worth individuals

3. Adjective describing inventors who do not want to take his risks with their money.

A risk averse B risky C speculative

4. Adjective describing companies whose shares are traded on the stock exchange.

A cites B listed C short-listed

5. Money paid to professional people for a job of work done.

A fee B wage C bonus

6.Another word for stocks or shares: a company’s own capital.

A bonds B equity C liabilities

7.The day-to-day expenses of operating a business.

A opportunity costs B running costs C variable costs

8.The attempt to increase or maximize sales, and get a large number of customers.

A market concentration B market penetration C market segmentation

9.Directors who do not work full time for a company, but advise it about strategic issues.

A executive directors B non-executive directors C vice-presidents

Listening a

Listen to the first part of the interview, in which Ed Coombes explains What Cambridge Capital Partners do, and answer the questions.

1. What is the market opportunity that has opened up for investors?

2.Why are pension funds now investing in such companies?

3.How do corporate finance teams get paid?

Listening b

Listen to the second part of the interview, in which Ed Coombes talks about business plans, and completes the contents page of a typical business plan.

BUSINESS PLAN Contents Executive summary Chapter 1: What the company is going to do Chapter 2: …………………………………. Chapter 3: Strategy: how we will deploy the investment Chapter 4: ………………………………….. Chapter 5: ………………………………….. Chapter 6: ………………………………….. Chapter 7: ………………………………….. Chapter 8: …………………………………..

Listening c

Listen to the third part of the interview, and answer the questions.

1. Which parts of the business plan are investors most interested in?

2. What do investors need to know about competitors?

3. What do investors need to know about revenue?

4. What kind of managers do investor prefer to see in start-up companies?

5. Why are non-executive directors important to a company?

6. What criticism does Ed Coombes say can often be made of entrepreneurs?

Speaking

A. Comment on:

ü An economy that does not have a strong venture capital sector is one that displays symptoms of deeper economic problems.

ü “Finance is critical. If sufficient investment is made in infrastructure and venture capital is made available, there will be a big improvement in the situation” S. Kuman

ü “When you are making your money by pushing power around, when you should be making money by investing venture capital in various job-creating things, that makes it much harder to recover”. Howard Dean

ü Venture Capital is the engine fueling innovation in the US economy.

ü The venture capital business is a batting game. If you hit one out of four, you're a solid player. But in the equity buyout business, since we're putting larger chunks of money into each deal, we can't afford to swing and miss. David Roux

ü Being a VC in a room full of entrepreneurs is like being the hot girl at a nerd party.

ü Nothing Ventured, Nothing Learned.

B. Role play I “Pat your your head and rub your tummy”

1. You are a businessman/entrepreneur. And you seek to apply for a venture capital. Prepare all necessary documents to introduce your company to venture capitalists or business angels in class.

2. In class make a discussion between a business angel / venture capitalist and businessman/entrepreneurs who would like to apply for a venture capital.Students will share the roles either entrepreneurs or venture capitalists.

3. When negotiating venture capitalists and businessman/entrepreneur have to take into account information given in the cards.

Businessman/entrepreneur/investor’s card Prepare your speech in accordance with the plan: ü presentation; ü financial plan; ü personal references; ü customer references; ü market references; ü trade route; ü market research; ü product documentation; ü competitive analysis.

Company’s representative pitch card Introduce your company pointing out the following: ü what you do; ü who you are; ü how you plan to make money; ü what you are asking for (how much money); ü demo; ü secret source / technology; ü market analysis; ü competitive assessment; ü go to market; ü business model/financials/targeted milestones.

Venture capitalist card analysis While negotiating try to concentrate on: 1. Team ü domain expertise with core technical strength and knowledge of given market opportunities; ü history of collaboration and success; ü a willingness to allow VC’s to help build the team. 2. Market ü emerging and fast growing market; ü bad markets make bad companies. 3. Business model ü how will you make money? How will you sell? 4. Technology ü defensible technology / IP that can be protected to form competitive barriers over time.

Role play II "Venture Capital and Entrepreneurial Management."

Imagine you are a venture capitalist, and an entrepreneur approaches you with a pitch for a new business. He wants to create an online marketplace for chemicals used by researchers in labs at universities, businesses and government agencies. The website would operate like Amazon. But instead of linking buyers and sellers of books, compact discs and other consumer goods, it would link scientists with sellers of substances such as proteins and antibodies. In order to do it you need to evaluate the online chemical marketplace first.

Would you invest?

C. Discuss the following issues:

- the essence of venture capital;

- advantages and disadvantages of obtaining venture capital;

- venture capital vs seed/risk capital;

- venture capitalists – basic characteristics;

- business angels – basic characteristics.

TRANSLATION

A. Translate into Russian

Дата добавления: 2015-10-30