Lovepop Case Assignment

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University of California, Los Angeles *

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164

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Finance

Date

Apr 3, 2024

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docx

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1

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NAME: ______________________________________________________________ All of the following questions relate to the Lovepop case. The word counts is a rough guideline. 1) Give one clear example of how Wombi Rose and John Wise bootstrapped? (5 – 20 words) 2) Which of Lovepop’s investor offers is from an accelerator? Which of Lovepop’s investor offers is from an incubator? How is an accelerator different from an incubator? (25 – 50 words) 3) In early 2015, John Wise faced a “make or buy” decision. What did he ultimately decide? Explain one financial consideration in the decision. Explain one non-financial consideration in the decision. Use the term “vertical integration” in your answer. (35 – 55 words) 4) In addition to the mentoring and networking, Techstars provided $18,000 of cash to purchase what percent of the common shares? If you ignore the value of the non-financial support, Techstars is placing what post-money valuation on Lovepop? What is the pre-money valuation? (Answer should only include 3 numbers) 5) Should Lovepop choose A) Techstars, B) Founder.org or C) Neither? Explain your answer (minimum 40 words) 6) What do your cap tables say about the two financing options (1/2 – 1 page analysis)
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