Problem
The purpose of this problem is to analyze venture capital.
You are the manager of the CBPM VC Fund. This is an investment fund that specializes in consumer product companies that have the potential to dominate their markets. You are evaluating Away Luggage which manufactures distinctive, durable luggage.
Answer the questions assuming the company is seeking an additional $250 million for expansion. The reference to the case is shown below. You can use additional sources, as long as you clearly cite them.
a) What form of investment would you recommend - debt or equity? Why?
b) If you were the manager of an investment fund, would you invest in this company? Why or why not? If yes, what percent of the company would you require?
c) What are possible exit strategies for the investment?