Aspen Aerogels faces two primary questions towards the end of 2001: whom to approach in their fundraising efforts and how much of an investment they should seek. It would make the most sense for Aspen Aerogels to seek additional funds from Rockport Capital. As Rockport Capital has already provided Aspen Aerogels with $4MM in May 2001, most likely they would be willing to invest additional funds due to a desire to continue growing the company. If Aspen Aerogels were unable to secure additional funding and were to fail, Rockport Capital would lose everything they’ve already invested in the company. Also, Rockport may want to increase their investment to establish additional control such as securing board seats, rights of first refusal, liquidation preference, etc., and to prevent becoming diluted, assuming their initial Shareholders' Rights Agreement didn't already contain these protective provisions.
To consider from an alternate perspective, Rockport Capital may not want to invest additional funds for various reasons. If Rockport Capital views Aspen Aerogels as a likely failure, they will not want to continue throwing their cash into what may ultimately be a completely unprofitable venture. Furthermore, Rockport Capital already has a relatively substantial amount of control over the company. From Exhibit 3, it is likely that Rockport received preferred stock in exchange for its initial $4MM investment, and therefore controls at least 13.75% of Aspen Aerogels and possibly more, assuming there are no additional VC investors. If Rockport’s Shareholders’ Rights Agreement contains an antidilution provision, it would be able to maintain its ownership percentage without investing additional capital, and therefore wouldn't necessarily be...
... middle of paper ...
...ce market, housing market, fire protection, technical insulation, etc., making it so that there are a large number of potential buyers out there waiting for the products. As long as Aspen can establish a clear marketing and sales strategy and build up good business alliances with large organizations in their potential markets, sales growth will definitely increase. Additionally, the barrier to enter the aerogels field is high. Aspen has already filed the patent protection for its production process and still continue R&D to reduce the manufacturing costs. The filed patent will ensure Aspen has a temporary advantage in this field. The strong background of the management team helps reduce the risk of Aspen Aerogels, as Lee, the CTO of Aspen, has been one of very few leaders with expertise in this area and has been putting efforts in aerogels research for a long time.
The purchase of the parent company would be financed with all equity. An individual or team of investors would pay the purchase price and they would receive equity in the Runway Fashion Exchange parent company. The value of the equity would increase as the compan...
There are articles online that discuss the benefits of buying Exelixis Inc. right now, considering how low of a price poi...
In today’s world Global Corporate Social Responsibility is a pressing Topic. In most cases a collaboration between a buyer and a seller or supplier must collaborate and participate in the makeup of Corporate Social Responsibilities. According to the Business Dictionary Ethics are the proper Business Policies and practices regarding potentially controversial issues such as corporate governance insider trading, bribery, discrimination, corporate and social responsibility.
... Capital, Corporation Finance and the Theory of Investment", The American Economic Review, vol. 48, no. 3, pp. 261-297.
Understanding that physical assets are quite different from money (Worth, 2014, p.341), the company has secured a majority of the financial resources needed to move forward in laying the foundation for a golf store in my hometown. At the moment, the company has three thirds of the start up capital and will require a sm...
Investment opportunities all over the world are unending. There are millions of products and services that are potential game changers for the Embry Investment Group. My job as your consultant is to analyze the market and recommend the best possible investment for today and the future of the Embry Investme...
If Lars decides to invest around $6 million more in research and development, it is highly risky as the company’s survival depends largely on the success of the launch of Ray’s new product into the market.
In “Venture Capital” alternative, a sum of $3.5 million will be traded in exchange for 750,000 shares and 50% of the board seats, which will result in a weighted average outstanding shares of 1,375,000. Net income will come to $514,500 and EPS will be 0.29.
Today, Apple keeps coming out on top with their exceptional and award winning items and administrations. Apple is additionally credited with driving the advanced media upheaval with their iPod compact music and feature players and iTunes online media store, making the first supportable music-downloading plan of action ever. (Jakab,
In the following paper I discuss the situation followed by an analysis of each of the three options “venture-capital round option”, “wait six months option”, and “angel round option.” Finally, I make my recommendation that is the “angel round option.” I decided to choose the angel round option for a couple reasons. I believe it’s the safest option among the three and gives Purinex the best opportunity to partner with a large firm before losing valuation within the company. Furthermore, there are not as many restrictions and the $2 million dollars from angel investors give the company a little more leeway. In addition, there’s a lot less risk involved by taking this approach.
Apple Inc. is one of the largest companies in technology and software that the medical industry has the ability to benefit from. Apple has marketed the world in all types of technology and devices. Apple would be the best company to merge with the medical industry. Their products could be designed specifically for an individual that has medical challenges. They could provide an opportunity to children that are not able to attend school therefore they could design a device and program that would allow a child the chance to feel as though they are in a classroom setting by way of virtual technology. Apple has no boundaries, when it comes to technology and with that on their side, they could create numerous opportunities
Apple Inc is the leading corporation in America that manufactures computer software and consumer electronics. This particular company is credited not only for designing products such as Macintosh, but it ranges from computers to iPad, iPhone and the iPod. With offering over 350 stores in many countries around the world alongside an online store Apple Inc was ranked the largest company in the globe. Throughout we will learn important factors of not only who found the company, what makes the company but how much it takes.
Using equity as a source of finance would mean that Barra Airways would be increasing the level of shareholder accountability it currently has. In the future, Barra Airways may find that in the future its freedom to make conduct business freely is hindered, if it issues more equity. The legal action taken by shareholders against companies has risen substantially since 1996 [7]. If this trend continues into the future then the likelihood of Barra Airways experiencing shareholder activism is significant.
Apple has always been active in responding to the changes that are brought by the rivalry
What is the possible meaning of the change in stock prices for Berkshire Hathaway and Scottish Power plc on the day of acquisition announcement? Specifically, what does the $2.55 billion gain in Berkshire’s market value of equity imply about the intrinsic value of PacifiCorp?