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Venture Capital & Private Equity – A2 Assignment – Final Individual Assignment
Assignment Instructions:

Word count (if applicable) 2,000 +/- 10%. (Tables included in word count,
excluding spreadsheets supporting financials.)
Weighting 50%
File Format MS Office or PDF
Submission Details Blackboard – instructions provided on Blackboard
Assignment Question:
CASE STUDY: Mobike: A Worthy Bike-Sharing Unicorn? [Case Ref. SMU-19-
0014]
You are to assume that you are Felicia Wong, and have to make a decision as to
whether to invest in Mobike. In order to evaluate this opportunity, you will prepare a
paper for the VC’s investment committee. (It is clear that the sector will continue to
“burn cash” until the market is served by a small number of profit focused companies,
so a cash flow estimate will add value.)
Assume that you are looking to take a 20% stake in the business. You are required to
provide a valuation at which you will invest, and hence calculate the sum required to
gain a 20% stake. You are also required to estimate the exit value using a 3 year time
horizon from investing.
Follow the steps below in preparing your paper:
This paper must comprise the following elements:
 Investment Hypothesis, with appropriate risk analysis/mitigation.
(25%)
 Market review of the sector, and investment within it. (15%)
 Enterprise Value: (25%)
Provide a current Enterprise Value (EV) analysis, with reasons for the
means of valuation chosen. (This is a key issue for the investors).
There must be more than one means of valuation.
 Exit and Return: (20%)
Estimate the EV at the point of exit, and hence the equity value of your
investment at exit. Then calculate the money multiple return and IRR on
the investment.
 Exit Options: (15%)
Provide the investment committee with a review of possible exit
options, and consider which might be most advantageous for the
Investment House.
July 2022 SEMESTER – ASSIGNMENT QUESTIONS
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Notes:
It is important to provide external validation where appropriate.
For example, the valuation multiples chosen will need to conform with industry norms,
both at investment and exit.
Any market data needs to be referenced to independent analysis via a recognized
trade body, or information provider.
For exit options, you might wish to consider who would wish to buy the business, and
why.
When submitting your assignment on Blackboard please ensure you attach all the files
you wish to on the submission link – only click on “Submit” when you have attached
all the files necessary for your submission.