Assignment Instructions

All assignments must be submitted ONLINE via my.wbs by 12pm (midday) UK time on the date displayed against this assessment.

Please ensure that you have inserted a completedassignment coversheet, which must be included as the first page of your script. This should include your Student ID number, but not your name.

Word Limit

2500

Word Count Policy

WBS has a school-wide policy on word counts.  This is strictly enforced to ensure consistency across modules and programme. You can find more information about this policy in your Student Handbook under Academic Practice -7i. Word count policy.

This is a strict limit not a guideline: any piece submitted with more words than the limit will result in the excess not being marked.

Academic Practice

Please ensure you read the full guidelines forAcademic Practicein the Undergraduate Handbook and ensure you understand it. If in doubt, please seek clarification in advance of your submission. This includes important information on:

.    Cheating, plagiarism and collusion

.    Correct referencing

.     Using internet sources in assessments

.    Academic writing

.     English Language support

.    Word count policy

When you submit this assignment online, you will be required to tick a declaration box indicating that the work involved is entirely your own. Each assignment will be put through plagiarism software to identify any collusion or inadequate referencing of materials used from different sources. Please do not submit images of your typed work unless you have been specifically requested to do so.

We would consider taking action if your work:

1. is too reliant on the words of particular authors (rather than presenting your ideas in your own words), if the essay uses the ideas or words of an author without referencing them or putting their words into quotations (plagiarism).

2. suggests that you have worked very closely with another student or students (unless explicitly asked to do so by your Module Leader/Tutor) (collusion).

3. includes unreferenced work that you have previously submitted for any accredited course of study (unless explicitly asked to do so by your Module Leader/Tutor) (self-plagiarism).

The Use of Artificial Intelligence (AI)

The University recognises an increasing number of technologies such as Artificial Intelligence and that they may be applicable in your completing this assessment. The assessment brief sets out specific requirements or restrictions, and theUndergraduate Student Handbookhas further guidance and advice.

You are reminded that the inappropriate use of such a technology may constitute a breach of University policy, such as theProofreading PolicyorRegulation 11 (Academic Integrity). If you breach these policies, it may have significant consequences for your studies. Please make sure you read and understand the assessment brief and how AI may or may not be used.

If a generative AI or similar is permitted and has been used you MUST make clear why you used such a tool or service, what you used it for and you will be obliged to confirm that you take sole ownership of any submitted work. As appendices, and as part of your submitted work, you must provide screenshots of the question and the AI-generated response, alongside an explanation of how the content has been utilised. You should note the relevant reference alongside each screenshot.

When you submit you must complete (physically or electronically) a declaration. This requires you to  explain the use of any AI. Failure to disclose at the point of submission may be prejudicial in any later investigations should they arise.

For this assessment the use of AI is Prohibited.

You MUST NOT use any generative Artificial Intelligence in this assessment unless specifically authorised for reasonable adjustments. You MAY use non-generative tools such as a spell-check, basic grammar check (non-generative), calculator or similar. If you have any doubts about a tool or service you plan to use please contact the module leader.

Extensions and Self-certification

Late submissions will incur a penalty of 5% for every 24 hour period after the due date and time, i.e. this begins one minute after the submission deadline (beginning at 12.01pm).

Requests for specific extensions (of up to 15 days) which are typically for longer and more serious concerns must be submitted via my.wbs ideally 72 hours BEFORE the deadline. Extensions can only be approved if you clearly detail your circumstances and provide supporting documentation (or a reason as to why you cannot provide the supporting documentation at the time) as set out in the Mitigating Circumstances Policy.

Self-certification is a university-wide policy whereby you are permitted an automatic extension of 5 working days on eligible written assessed work without the need for evidence. WBS permits self- certification for all types of written, assessed works such as essays and dissertations. It is not permitted for exams, course tests, or presentations.

You can self-certify twice within each year of study, starting from the anniversary of your course start date. This will cover all eligible written assessments that fall within the self-certification period, as long as they have not previously had an extension applied. To find out further details about the self-certification policy please see:https://my.wbs.ac.uk/-/academic/20778/item/id/1244460/.

If you wish to self-certify for an extension of 5 working days, please select 'Self-certification' in the Extension Type field. If you wish to request a longer extension than 5 working days, please leave the Extension Type as 'Standard'.

You are an advisor to the founders of Tecware, a start-up technology company which has never raised finance before. The founders are student engineers at the University of Warwick and their technology is potentially ground-breaking. Despite having little business experience, they have impressed several investors during a recent technology showcase event at the Oculus.

Hippogriff Ventures, a venture capital fund that attended the event, has now sent the founders a term sheet with an offer to invest in Tecware. Hippogriff is a well-known VC fund with a strong reputation and track record in the industry and it is surprising that they have sent a term sheet so quickly.

The founders of Tecware have never dealt with VCs before and have asked you to provide guidance and help them secure the best deal using the knowledge you have gained on your IB2680 module.

Write a report to the founders of Tecware analysing the key negotiating points in the term sheet and advising them how to proceed.

To successfully pass this assessment, students need to include a discussion of the following:

.    Pre-money and post-money valuation. Include a calculation of the percentage of the equity owned by the founders immediately after all three tranches are invested.

.    The phases (tranches) of the proposed investment and the risks to the founders due to the tranches. Make suggested changes to the milestones that would enable the founders to manage these risks.

.    The class of shares specified by Hippogriff in the term sheet. Explain how these shares may affect the founders at an exit. What are the alternatives?

.    The role of the board. What do you think about the structure of the board proposed by Hippogriff’s term sheet?

.    Discuss what information the founders should find out about Hippogriff before signing the term sheet. Suggest how they could go about gathering this information.

.    If the founders asked you to take the lead on negotiating with Hippogriff, what approach would you take to get the best deal?

The marking criteria of Comprehension, Critical Evaluation, Analysis and Academic Writing run throughout this report in a holistic manner and it will be marked accordingly.