MBA603 New Venture Capital Raising Plan Presentation Summary

This presentation summary details a new venture capital raising plan for a beverage startup named Delight, focusing on the Australian market, particularly Brisbane. The plan emphasizes bootstrapping initially, followed by seed funding through loans to maintain ownership control. For production and expansion, Delight aims to raise capital through the sale of shares and bonds, carefully managing equity distribution and debt levels. The company intends to use initial funds for branding, market surveys, and pre-launch publicity. The strategy prioritizes maintaining majority ownership to ensure decision-making control while leveraging capital markets for growth. References to industry-specific studies support the viability and strategic choices within the plan.

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NEW VENTURE CAPITAL RAISING
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Summary of presentation
A research conducted by Friedman School of Nutrition Science in 2017 ranks New
Zealand and Australia as the world’s biggest consumers of fruit juice in the world (Theisinger, &
Smidt, 2017). Australia is also ranked fifth in the consumption of Alcohol only behind Germany,
Norway, Finland and the Netherlands. The demand for beverage products such as juice as well as
alcohol thus provides a ready market for any startup seeking to set up shop in the country
(Kemp, 2013). The revenue from the food is also projected to rise rapidly in the coming years as
a result of consumer demand. The beverage industry is thus a very viable investment venture for
willing entrepreneurs.
Brisbane was chosen as the primary location because of labor availability. Additionally,
the area has a sizeable population which would provide a direct market for the commodities
produced at Delight. The region also has the proper infrastructure in terms of roads which is vital
for the company's daily operations (Yigitcanlar,& Velibeyoglu ,2008). Brisbane is also a major
hub for companies dealing in the technology sector thus the delight would benefit from such
services in matters to do with the acquisition of equipment.
Delight aims at starting with the readily available finances since borrowing at the early
stage would reduce the company’s liquidity as well as interfere with the company’s management.
Additionally, it would be difficult to acquire funding given the limited performance records
available. The bootstrapping funds would be used in laying down the basics such as the company
logo which would act as the symbol through which the public would recognize the company. The
money would also be used in market surveying so as to identify the wants and needs in the
consumer market. The money would also go a long way in publicizing the company before the

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commencement of its operations. A reminder of the money would be channeled into other
projects in which the firm seeks to engage.
Seeding is a viable way of raising capital for funds. If not done carefully, however,
founder(s) of the firm may end up giving too much ownership of the company thus losing their
control of the firm. Delight, therefore, aims to use Seed funding through loans since there will be
no giving up of the equity stake. The founders will therefore still be able to make decisions about
the operations of the firm.
During the production and expansion stage, Delight will need huge amounts of funding in
order to operate. This will be done through trading of shares and bonds in the capital market. The
company will, however, be careful to maintain a majority ownership stake to help them control
the decisions of the firm.45% of the money needed will be raised through the sale of ordinary
shares which offer dividends to the shareholders relative to the company’s earnings. Delight will,
however, ensure that only a proportionate amount is given as dividends since offering dividends
at very high-interest rates would reduce the percentage of earning ploughed back into the
company. Delight will also issue bonds at reasonable coupon rates to reduce the amount of
money spent on settlement of debt. The profits realized will also be vital in delight’s expansion
plans.

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References
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organizations. Open Innovation in the Food and Beverage Industry, 343-355.
doi:10.1533/9780857097248.4.343
Guthrie, J., Cuganesan, S., & Ward, L. (2008). Industry specific social and environmental
reporting: The Australian Food and Beverage Industry. Accounting Forum, 32(1), 1-15.
doi:10.1016/j.accfor.2007.10.001
Kemp, S. (2013). Consumers as part of food and beverage industry innovation. Open Innovation
in the Food and Beverage Industry, 109-138. doi:10.1533/9780857097248.2.109
Raymond R. (2013) Brisbane. Delivering the Vision, 63-85.
doi:10.4324/9780203470664_chapter_4
Theisinger, S. M., & Smidt, O. D. (2017). Bioaerosols in the Food and Beverage Industry. Ideas
and Applications Toward Sample Preparation for Food and Beverage Analysis.
doi:10.5772/intechopen.69978
Yigitcanlar,& Velibeyoglu (2008). Knowledge-Based Urban Development: The Local
Economic Development Path of Brisbane, Australia. Local Economy, 23(3), 195-207.
doi:10.1080/02690940802197358