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    University Technology Ventures proposes to create value for investors by investing in university startups and licensing intellectual property. While venture capitalists were initially interested in UTV providing an additional source of funding, UTV has found fundraising more difficult than expected. There are questions around whether the concept or marketing strategy is the issue, and if they should shift their fundraising approach. To analyze if UTV's fees are justified, assumptions are provided about the amount raised, draw down schedule, fee payment structure, return timeline, and discount rate to use when evaluating performance.

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    Questoes University Technology Ventures

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    University Technology Ventures proposes to create value for investors by investing in university startups and licensing intellectual property. While venture capitalists were initially interested in UTV providing an additional source of funding, UTV has found fundraising more difficult than expected. There are questions around whether the concept or marketing strategy is the issue, and if they should shift their fundraising approach. To analyze if UTV's fees are justified, assumptions are provided about the amount raised, draw down schedule, fee payment structure, return timeline, and discount rate to use when evaluating performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
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    6 views1 page

    Suggested Assignment Questions

    Uploaded by

    veda20
    University Technology Ventures proposes to create value for investors by investing in university startups and licensing intellectual property. While venture capitalists were initially interested in UTV providing an additional source of funding, UTV has found fundraising more difficult than expected. There are questions around whether the concept or marketing strategy is the issue, and if they should shift their fundraising approach. To analyze if UTV's fees are justified, assumptions are provided about the amount raised, draw down schedule, fee payment structure, return timeline, and discount rate to use when evaluating performance.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as DOC, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Suggested Assignment Questions

    1. How does University Technology Ventures propose to create value for its investors? Are its arguments plausible? 2. Why have venture capitalists been interested in having UTV as a potential investor? 3. Would you invest in the UTV fund? Why has the fundraising proven to be more difficult than anticipated? Is the problem in the concept of the fund, or the way that way that they have marketed the concept? Should they shift their fundraising strategy? 4. How much does UTV charge for their services? What increment to performance would be required to justify their fees? In analyzing this question, you may wish to assume that: The fund raises $ 85 million. The money is drawn down at the beginning of the first six years in the following pattern: $10 million, $25 million, $15 million, $10 million, and $5 million. The fess are paid out if the drawn-down capital for the first six years; for the next six years, they are paid out of distributed capital. Proceeds are returned to UTV six years after the date of the original investment. An appropriate discount rate for all cash flow is 15%.

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