25733 Finance for Entrepreneurs

Students are expected to research the questions via any and all online resources. Please ensure you provide links to online sources in your references/appendix to provide proper attribution. Please submit an electronic copy via turnitin (uts online) and bring a hard copy to class. There are no page limits.
Part 1 Artificial Intelligence
1. Explain how machine learning works in the area of artificial intelligence.
2. Describe how the startup Alation is using artificial intelligence in their company.Detail how much money they have raised over each round. Can you use these  funding rounds to show the valuation of the company over time?
3. Search Crunchbase and identify at 4 different startups that are using artificial intelligence. Provide their name, where they are based, what financing they may have received. Describe what the artificial intelligence aspect of the startup. Include one sentence description (value proposition) about the business.
Part 2 Financing when things go wrong
1. Is a startup pivot considered to be a failure? Why/why not?
2. What is a down round?
3. How does an anti-dilution clause affect ownership in a down round? How do weighted-average and full ratchet anti-dilution clauses work? Provide an example to  illustrate a down round with two different venture capital investments, one with a weighted average anti-dilution clause and one with a full ratchet anti-dilution clause.
Part 3 Founder and employee remuneration
1. What remuneration is typically paid to a founder when they are starting a company?
2. Describe different at least three different forms of equity that can be given to employees along with the pros and cons of each from the perspective of the startup and the employee.
3. What are the considerations from a startup and from an employee perspective when designing remuneration to choose between a mix of salary & equity?
4. Will equity remuneration be more or less effective once you have been in business for 5 years and have over 1,000 employees?
Part 4 Entrepreneur Ecosystem in Sydney
The Sydney entrepreneur ecosystem is continually evolving. Investigate accelerators that are currently operating in Sydney and explain who is eligible to participate and what is being offered by the accelerator. One example, is the Founder Institute which operates a 12 week course by application at a cost of US$1,200 and a percentage of the new company being formed. They offer mentorship and a training program that has intense pitching perfected each week with only a 33% completion rate.