Proof Eyewear wants to be a leader in the eyewear industry. They are pitching to the Sharks for enough money to produce enough inventory to satisfy a $900,000 order from a major sunglasses chain retailer in the US. They are seeking $150,000 in exchange for 10% equity ownership in their company.
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<CA instructions: write about what the purpose of this activity is, what Proof Eyewear is, and a set of learning objectives/> Students should be able to create a low-resolution version of Proof's income statement from their presentation and answers to the Sharks' questions. />
If you are taking this assignment for extra credit you will receive five points toward your final grade for satisfactory completion.
Thinking like a Shark Tank Shark - Starting with an income statement
Thinking like a Shark Tank Shark - Part II - Manufacturing Capacity and ability to fulfill orders
This is a brief in-class assignment to help you estimate Proof's pre-money value and to use as an input for the discussion questions below. You should view the slides on metrics and early-stage valuation methods before viewing the video.
Use this PDF to apply step-up and risk mitigation methods to determine pre-money valuations of Proof Eyewear
Watch the Proof Eyewear pitch on Shark Tank posted above. Then answer the valuation questions. Here are the documents you need to complete the Proof Eyewear Early-Stage Valuation methods (google doc)(PDF). Note that you do not need to complete the Activity listed above or the "discussion questions" below for this Activity. Just answer the question I ask for this specific activity. Download and edit the google doc is you can't be in class and use the PDF hard copy I pass out during class for your in-class team work.
The purpose of this document is to respond to questions about the Proof Eyewear pitch on Shark Tank. You'll need to watch the entire video above before attempting these questions. After you have watched the entire video, complete the instructions and answer all the questions on this google doc (displayed also below).
Read this ONLY AFTER your have answered the Proof Eyewear Discussion Questions above. (Like I can enforce time sequences...)