NEW VENTURE CREATION
Investing in start-up business requires taking a high level of risk with a prospect of high returns. However, given short (or no) historical performance for the company, apprising a start-up company requires various financial projections based on such factors as market research, the performance of the companies in the industry, and the structure and business model of this start-up company. The ensuing analysis delves into critically evaluating the nature, form and prospect of GEM limited as an investment opportunity for the TWF Limited. The analysis commences by looking at the whole idea of investing in GEM limited. Given the central role played by the management of the company, the reports evaluate the executive team of the company, before looking at the financial analysis. The report concludes by re-reviewing GEM limited as a potential investment opportunity and give recommendation concerning the same.
GEM limited Appraisal
Evaluation of Idea of investing in GEM limited
Investing in GEM limited will require TWF Limited to give out £1, 500, 000 for 2000 shares, which will guarantee 20% ownership of the shares. This looks appealing especially if the company can tap into the market and register a considerable level of growth. TWF Limited Company is in a position to raise this fund, given a continued three-year success. The success of the TWF Limited is driven by the company’s business orientation that is keen in investing in a local technological start-up company. The technological industry is growing at a high rate which makes an investment in this industry a promising venture. However, the advancement in technology is making various technological products obsolete at a very high rate, requiring a company operating in the industry to be very innovative. As…………………….