MBA603 Assessment 4: Capital Raising Plan for Online Student Library

This report presents a capital raising plan for an online student library, addressing the shift from traditional to internet-based education. The plan outlines the financial needs at different stages, including bootstrapping, seed funding, production, and expansion. The startup aims to provide resources like books, magazines, and lecture videos through a membership model. The total capital requirement is estimated at $1 million, with funds coming from the owner, friends, family, and crowdfunding. The report details the allocation of funds, percentage ownership offered, and the role of investors like Sydney Seed Funds and Blackbird Ventures. The digital collections will be categorized into books, magazines, and special collections for different age groups. The overall goal is to create a global information provider that offers learning opportunities and improves library facilities through resource collections, assistance, and data instruction. The report also includes references to relevant research and articles supporting the business plan.

The Online Student Library
Summary
In today’s world, the education system is being transformed. Earlier, heavy bags with lots of
books is carrying by the students which is a burden to them consider as the main problem
among the student to get extra knowledge. And also few books are hard to find in the market
and few are expensive. They cannot able to get all the resources.
but now the internet based education system has been changing this scenario. The education
is not limited to paperback books.
A student can learn a lot of things from the internet. Many organizations are already working
in this field and they got financially benefited from the service they provide; they charged for
online reading material i.e. books and online courses such as edx by MIT, USA, Couresa,
MOOK etc. By considering this fact an online student library also act as the profitable
business because it provides the resources like books, educational magazines, podcasts of the
specific topics, lecture videos and notes. The students can only get access to the books and
other materials if they pay the membership fee to the library and there may be the case when
student will have to pay for the books. The personal assistance will be providing to the
student who are frequently using the internet.
The idea behind this start-up is to provide facility and service to the students of schools and
colleges. The online student library will also give service to the student by providing a
learning community through which the student will get more help to understand the subject.
The main aim of the library is to provide and get economic benefit from the online resources,
study materials, professional support and supervision to all the student who have keen interest
toward studies (Hew, 2016). The membership will have limited to students only, the proposed
plan for start-up also gives the facility of issuing books and home delivery services to the
student with the precise documentation of the issuers. The student will free to ask the queries,
and librarian will help the student. The information on subject related activities could also be
organized to keep the interest of the student to make them as member of the library for a long
time. The student library can be fused with the libraries around the world through the internet
(Reed, 2016).
The total capital to the start is approximately $1 million will pay by the owner along with
$20,000 which has been raised from the friends and family and also include the
crowdfunding which is about approximately $30,000 (Shiell, 2018). For the seeding stage,
the grant is about $50,000. For incubation and acceleration purpose Startmate is helping the

idea to be make perfectly organized. Sydney seed funds act as an angel investor and
Blackbird venture as the venture capitalist (Doyle, 2017).
Stage of
Development
Amount of
Money
Needed at
this Stage
(Approx.)
Potential
Source
What is the
Money For
Percent
ownership
willing to
give up in
round
(Approx.)
Founder’s
percent
ownership
(Approx.)
Bootstrapping $ 40,000 Owner fund Commercializing
the start-up
49% 30%
Seed $ 10,000 Sydney
seed funds
Managerial
Aspect
20% 25%
Production (possibly
Series A)
$ 25,000 Owner
fund
Execution 20% 20%
Expansion (possibly
Series B)
$ 20,000 Blackbird
venture
Growth in the
business
10% 10%
The digital collections of the books and other reading material on the website will separate
into 5 broad categories which include resources such as books, magazines, newspapers &
special gatherings formed and distinct collections for every age groups of the students. The
scope is to make the online student library as global information provider community that can
provides the services such as learning opportunities to students by the help of library
resources and information to all streams of student’s provisions and improves library
facilities through the facility of imposing collections of resources, assistance, and data
instruction to the student and to get economic benefit from it. The proposed business idea will
improve the shape and allow direct developing the part of libraries in a progressively digital
world and to develop a simulated education online hub for the student to get the information
(Dasilva, 2018).
References:
DaSilva, C.M., 2017. The Role of Angel Investor Identity in Entrepreneurship. In Academy of
Management Proceedings(Vol. 2017, No. 1, p. 12214). Briarcliff Manor, NY 10510:
Academy of Management.
Doyle, N.J., 2017. What is to be done? A Dialogue on Communism, Capitalism and the
Future of Democracy.

Hew, K.F., 2016. Promoting engagement in online courses: What strategies can we learn
from three highly rated MOOCS. British Journal of Educational Technology, 47(2),
pp.320-341.
Reed, K., McFarland, D. and Croft, R., 2016. Laying the groundwork for a new library
service: scholar-practitioner & graduate student attitudes toward altmetrics and the
curation of online profiles. Evidence Based Library and Information Practice, 11(2),
pp.87-96.
Shiell, A. and Jackson, H., 2018. How much does Australia Spend on Prevention and How
Would we know Whether it is Enough?. Health Promotion Journal of Australia.