Venture Capital Investment Term Sheet and Simulation

This report provides a comprehensive analysis of venture capital investment, focusing on the BrickX platform. It explores the concept of venture capital in the context of property investment, detailing how BrickX enables investors to purchase small stakes in residential and commercial properties. The report includes a simulation analysis examining the impact of unit price and capital appreciation rate changes on investment returns. It presents simulation tables illustrating various scenarios and their effects on the rate of return for investors. Furthermore, the report provides a sample term sheet for potential investors, outlining key terms and conditions. The conclusion emphasizes the importance of careful consideration of market variables before investing in property and recommends investing when stake prices are low to maximize returns.

Running head: VENTURE CAPITAL INVESTMENT TERM SHEET
Venture Capital Investment Term Sheet
Name of the Student:
Name of the University:
Authors Note:

1
VENTURE CAPITAL INVESTMENT TERM SHEET
Contents
Introduction:....................................................................................................................................2
Venture capital:................................................................................................................................2
Terms and conditions:......................................................................................................................3
Simulation:.......................................................................................................................................3
When everything remains constant except the unit price in the property market:......................3
When capital appreciation rate changes:...................................................................................13
Term sheet for potential investors:................................................................................................19
Conclusion and recommendation:.................................................................................................20
References:....................................................................................................................................21

2
VENTURE CAPITAL INVESTMENT TERM SHEET
Introduction:
Accessing property market is extremely difficult for individual investors on their own due to the
cost of investment as well as complexity of the property market. Thus, having a platform to
enable investors invest in the property market is extremely encouraging for the investors. BrickX
is a platform for real estate investors to help them easily access the real estate market. The
platform allows aspiring property buyer to invest in small stakes in residential and commercial
properties. The simple and low cost a brief discussion on the basis of simulation of investment
analysis in the property market is provided below by using the BrickX profile.
Venture capital:
There is substantial amount of risk in venture capital as it generally considered for new and
expanding business. The ease of access to the property market helps the aspiring buyers to buy
even smallest stakes for $50 in property market. This was almost impossible to imagine for the
aspiring investors in the property market before the platform was introduced by BrickX
("Fundamental and technical analyses for stock investment decision making", 2016).
Brick has more than 50, 000 registered signed up investors who have used the platform to make
investment in the property market. The aspiring investors can visit the website
(www.brickx.com) to register themselves by following a simple and easy process. Once
registered it can start investing in the property market by buying stakes in the property market.
This process allows the organization to collect smallest amount of money from investors to fund
costly projects in the property market. The concept of venture capital has been introduced by the
organization effectively by collecting funds from aspiring owners of property by dissecting large
properties into quantifiable small units (Madaan & Singh, 2019).

3
VENTURE CAPITAL INVESTMENT TERM SHEET
Terms and conditions:
The terms and conditions are to be mentioned first before proceeding to conduct the simulation
analysis on the basis of different variables. It is clear that the access to property market has been
made very easy by BrickX as it has created smallest units in properties to allow small investors
to buy stakes in properties. Accordingly, the simulation for the venture capital investors shall be
carried out by assuming number of different variables as the property market is extremely
vulnerable to the changes in micro and macro-economic factors (Ţurcan, 2016).
Simulation:
When everything remains constant except the unit price in the property market:
Unit price $50
Number of units purchased
Yea
r
Number of units
purchased
Total
investment
(A):
Return
s
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 25000 750 250 1000 4
2 500 25000 600 250 850 3.4
3 500 25000 500 250 750 3
4 500 25000 800 250 1050 4.2
5 500 25000 900 250 1150 4.6
6 500 25000 750 250 1000 4

4
VENTURE CAPITAL INVESTMENT TERM SHEET
7 500 25000 600 250 850 3.4
8 500 25000 500 250 750 3
9 500 25000 1000 250 1250 5
10 500 25000 400 250 650 2.6
Unit price $55
Number of units purchased
Year Number of units
purchased
Total
investment
(A):
Returns
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 27500 750 275 1025 3.7
3
2 500 27500 600 275 875 3.1
8
3 500 27500 500 275 775 2.8
2
4 500 27500 800 275 1075 3.9

5
VENTURE CAPITAL INVESTMENT TERM SHEET
1
5 500 27500 900 275 1175 4.2
7
6 500 27500 750 275 1025 3.7
3
7 500 27500 600 275 875 3.1
8
8 500 27500 500 275 775 2.8
2
9 500 27500 1000 275 1275 4.6
4
10 500 27500 400 275 675 2.4
5
Unit price $60
Number of units purchased
Year Number of units
purchased
Total
investment
(A):
Returns
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 30000 750 300 1050 3.5

6
VENTURE CAPITAL INVESTMENT TERM SHEET
0
2 500 30000 600 300 900 3.0
0
3 500 30000 500 300 800 2.6
7
4 500 30000 800 300 1100 3.6
7
5 500 30000 900 300 1200 4.0
0
6 500 30000 750 300 1050 3.5
0
7 500 30000 600 300 900 3.0
0
8 500 30000 500 300 800 2.6
7
9 500 30000 1000 300 1300 4.3
3
10 500 30000 400 300 700 2.3
3

7
VENTURE CAPITAL INVESTMENT TERM SHEET
Unit price $65
Number of units purchased
Year Number of units
purchased
Total
investment
(A):
Returns
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 32500 750 325 1075 3.3
1
2 500 32500 600 325 925 2.8
5
3 500 32500 500 325 825 2.5
4
4 500 32500 800 325 1125 3.4
6
5 500 32500 900 325 1225 3.7
7
6 500 32500 750 325 1075 3.3
1
7 500 32500 600 325 925 2.8
5
8 500 32500 500 325 825 2.5

8
VENTURE CAPITAL INVESTMENT TERM SHEET
4
9 500 32500 1000 325 1325 4.0
8
10 500 32500 400 325 725 2.2
3
Unit price $70
Number of units purchased
Year Number of units
purchased
Total
investment
(A):
Returns
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 35000 750 350 1100 3.1
4
2 500 35000 600 350 950 2.7
1
3 500 35000 500 350 850 2.4
3
4 500 35000 800 350 1150 3.2
9
5 500 35000 900 350 1250 3.5

9
VENTURE CAPITAL INVESTMENT TERM SHEET
7
6 500 35000 750 350 1100 3.1
4
7 500 35000 600 350 950 2.7
1
8 500 35000 500 350 850 2.4
3
9 500 35000 1000 350 1350 3.8
6
10 500 35000 400 350 750 2.1
4
Unit price $45
Number of units purchased
Year Number of units
purchased
Total
investment
(A):
Returns
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 22500 750 225 975 4.3
3
2 500 22500 600 225 825 3.6

10
VENTURE CAPITAL INVESTMENT TERM SHEET
7
3 500 22500 500 225 725 3.2
2
4 500 22500 800 225 1025 4.5
6
5 500 22500 900 225 1125 5.0
0
6 500 22500 750 225 975 4.3
3
7 500 22500 600 225 825 3.6
7
8 500 22500 500 225 725 3.2
2
9 500 22500 1000 225 1225 5.4
4
10 500 22500 400 225 625 2.7
8
Unit price $40

11
VENTURE CAPITAL INVESTMENT TERM SHEET
Number of units purchased
Year Number of units
purchased
Total
investment
(A):
Returns
(B): Capital
appreciation
Total return
(A+B)
Return
rate (%)
1 500 20000 750 200 950 4.7
5
2 500 20000 600 200 800 4.0
0
3 500 20000 500 200 700 3.5
0
4 500 20000 800 200 1000 5.0
0
5 500 20000 900 200 1100 5.5
0
6 500 20000 750 200 950 4.7
5
7 500 20000 600 200 800 4.0
0
8 500 20000 500 200 700 3.5
0
9 500 20000 1000 200 1200 6.0