Project 2 Notice

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For your second project, you would be steeping into the shoes of an investor and assessing business ideas

from
the view of investing in them.
There are three proposals that have come your way, each in a different stage of the Private Equity cycle.

 Education Technology Company


o Founders: Team with a solid background in IT products

o Product: Augmented reality app for biology students (Grade 7 – 10)

o Product Description: Considering human anatomy to be one of the most difficult subjects for
students to understand, this technology recreates the human body while teaching and shows live
process movements inside the human body; which children can see through their mobile devices.
The live process movements are linked with teaching that is going on. To quote an example,
when a class is going on about the circulatory system; the students can use their mobile devices
and look at the system in real time. This enhances student experience & enables them to
understand concepts in a better manner
o Idea Testing: In a pilot testing that was conducted by the company, this technology improved
marks and understanding in biology up to 40%.
o Product-Market Fit: Not yet determined

o Traction: None yet

Challenge: Value communication

 Sustainable Fashion Company


o Founders: A fashion design graduate

o Product: Sustainable women wear

o Product Description: With the clothing industry becoming the third most polluting industry in
the world, sustainable fashion has become an upcoming trend for conscious consumers. These
apparels are designed with a longer average life (normal average life of a product = 2.2 years)
using eco-friendly recyclable materials like organic cotton, hemp, Tencel, linen etc. The
company also uses dead stock and leftover materials from various fashion boutiques to avoid
wastage of materials. Due to their longer sustainability, they are a little more expensive than
normal fast fashion products.
o Product-Market Fit: Not yet determined
o Traction: Tremendous positive response to limited launch sales in niche-high end markets.

Challenge: Brand building

 Social Media Application


o Founders: A computer science graduate

o Product: Caption recommending application

o Product Description: A free social media application that looks at pictures and gives caption
recommendations to users to post on Instagram. The AI based application scans the picture, and
gives personalised caption recommendations based on the emotions and moods of the people in
it. It is also updated in real time, and in sync with the news. Therefore, in case a user uploads a
picture during a significant news event, the application will scan for moods and emotions of
people in the picture and has the capability to also give multiple caption recommendations that
would be based on the news event and the emotions of the people.
o Product-Market Fit: Not yet determined

o Traction: The application has been downloaded 5,00,000 times since its launch

Challenge: Monetization

Among the three proposals, pick a proposal that interests you and answer the following questions.
 Among the 5 stages of the company life cycle mentioned in the module, identify the stage of the selected
proposal and provide evidence for the same. Assess the proposal by creating a SWOT (strengths,
weaknesses, opportunities and threats) matrix. (200 to 300)
 Extensively explain the challenges faced by the proposal and the potential ways in which you feel the
company can solve its challenges. You can draw parallels with another successful company in similar
domains as supporting evidence. (400 to 500 words)
 Assuming that Rs. 50 lakhs are the value of investment that you are looking to make in the selected
portfolio and you are using convertible notes, describe the milestones that you would put for the selected
business and corresponding rates of conversion. (300 to 400 words)
 Please share a customer lifetime value and customer acquisition cost analysis of the business you have
chosen with emphasis on how many years does the business need to keep the customer loyal so that the
customer lifetime value exceeds the customer acquisition cost. (200 – 300 words)
Please note that you may exceed the word count by a maximum of up to 50%.
You can refer to the attached file to view the sample project report for the abovementioned project note.

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