Beyond products
Manigart, Sophie
Manigart, Sophie
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Publication Year
2008
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Book
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Abstract
Peter Van Riet, a young entrepreneur and enthusiastic snowboarder, has developed a revolutionary snowboard binding for which he holds patent rights in Europe and the USA. A first prototype has already been successfully tested. His business and marketing plan show that there is room for a new binding, introduced on the fragmented snowboard binding market by a small and young company. He targets the European and North-American markets in the first place, expanding to a global brand as the company takes off. He will mainly sell through smaller national distributors. His goal is to develop the company over time into a full-fledged snowboard branch, not only offering bindings but also clothing and accessories. Having invested all his time and savings of approximately £350,000 in product development, patent rights and initial marketing expenses, he is currently looking for a £300,000 cash investment by a syndicate of four business angels who he has found through a local business angel network. This money is needed for further product development, prototyping and testing, and for marketing and sales. The key issues that he cannot resolve is what equity percentage would be fair to the business angels, without diluting the founders' position too much and also compensating them honestly for their efforts until now? In order to answer this question, he has developed a full financial plan with profit and loss, and cash flow statements. Moreover he has gathered information on the relative valuation of quoted companies in the sports apparel business.