The Investment Fit of DrAIve and UnBlockAfrica Coursework

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The investment fit of DrAIve and UnBlockAfrica from the perspective of an angel investor

DrAIve can be an attractive venture for an angel investor because of several factors. An individual or a group possessing certain capital wants to be sure that their investment will contribute to the generation of costs. However, they should expect for the long-term project presupposing that first sales will occur in 18 months and will continue to grow. In such a way, the angel investor will demand the guarantees of success and the venture’s opportunity to avoid collapse and become a profitable company. The current numbers show that net income will grow and constitute about $25 million in year 5, and will continue to rise. Usually, angel investors expect a minimum return of 25%, which means that DrAIve can be a promising project for them as the planned income is high, and all investors can benefit from the stably growing revenues and the beneficial market, creating the basis for the further rise. Under these conditions, angel investors might consider DrAIve an appropriate opportunity for using free costs to support the evolution of the venture in exchange for an equity position or other advantages.

UnBLockAfrica is another project that can be attractive for angel investors. First, it offers equity options for potential partners, meaning that they can benefit from the given opportunity and except for stable growth. Second, in accordance with the projects’ financial statements, it is possible to count or an increase in income starting the second year, meaning that the venture becomes highly attractive for investors. Moreover, the organization has some partners among national organizations, which introduces additional guarantees of stability and the opportunity to survive and create the basis for future evolution. By the 5th year, it is expected that revenues will constitute up to $54 million. The given forecast shows that angel investors can be attracted by the opportunity provided by the project and decide to provide their costs to wait for serious returns. Under these conditions, wealthy individuals or groups can view UnBlockAfrica as a promising venture because of the existence of the attractive market, possible income, and the absence of critical risks of losing their money. The financial plans outline the short and long-term perspectives and can be used as the basis for decision-making regarding investing in this new project.

The investment fit of DrAIve and UnBlockAfrica from the perspective of an equity-based crowdfunding investor

Crowdfund investing presupposes the participation of numerous individuals contributing small amounts of funds hoping for equity positions and some rewards. Speaking about DrAIve, the given venture becomes highly attractive for this cohort of investors. First, as a new and promising project, DrAIve welcomes any possible partners and is open to cooperation at the moment. However, with the first evolution of the company, its shares might acquire additional value, meaning that initial investors might benefit from the increased profitability of the business and the high price of their shares. However, DrAIve looks for partners with specific features, such as international networks, experienced, and having some value and capital. It can become a possible barrier for equity-based crowdfunding investors as the company cannot be interested in providing them with shares. At the same time, crowdfunding is a stable source of the money needed to support the evolution of a new venture. Under these conditions, an equity-based crowdfunding investor can benefit from participating in the given project as in accordance with its financial statement, the price for shares will increase, and the partners will benefit from the growth in value and additional income.

Speaking about UnBlockAfrica’s investor fit from the perspective of an equity-based crowdfunding investor, some essential aspects should be considered. First of all, as any new project, it demands significant finances and costs to create the basis for its further evolution and growth. Being a business that is also focused on the improvement of the state of local communities, UnBlockAfrica can expect solid support from various groups and individuals. For this reason, crowdfunding might be viewed as a potent source of money critical for establishing the basis for the venture and its future evolution. Moreover, the company is supported by social organizations and funds, which is an advantageous factor for this type of investor. Finally, UnBlockAfrica presupposes equity, meaning that partners can become shareholders and expect additional income with the further evolution of the venture. In such a way, the proposed project can use crowdfunding to attract investors, and, at the same time, they can acquire multiple advantages from working with the company and hoping for its becoming a leader in its sphere due to the peculiarities of the market.

The investment fit of DrAIve and UnBlockAfrica from the perspective of a corporate venture capital investor

For corporate venture investors, DrAIve can be an attractive and potentially beneficial startup that should be considered. Providing funds directly to other companies and new ventures, such corporations increase the scope of their activities and are capable of monitoring the market, looking for the best possible options for further expansion. DrAIve has features that are traditionally attractive for big corporations, such as innovativeness, outstanding opportunities for further development, and the demand for high investment and starting capital to ensure that the project will succeed and generate revenues. Moreover, DrAIve outlines the need for corporate venture capital, meaning that this type of investor will be welcomed and might have good opportunities for cooperation and becoming a partner. Moreover, it needs $33 million of funding to become cash flow positive, and the corporate venture capital investor might have the demanded sum and use it to stimulate the further rise of the venture. Under these conditions, it is possible to state that corporate venture capital investors can be interested in such projects because of the appropriate investment fit and the opportunity to generate a competitive advantage.

UnBlockAfrica also has a combination of characteristics that might be attractive for this cohort of investors. First, it is an innovative firm focused on promoting technology and increasing its availability and affordability in regions with traditionally low levels of digitalization. Under these conditions, investing in this project, corporations might gain a competitive advantage as in case of its success, they will acquire a new partner and sub-company with the opportunity for further development and rise. The given investment will also contribute to the emergence of a hybrid culture combining the elements of corporate power and startup culture. In such a way, UnBlockAfrica, with its demands for significant startup capital, becomes an attractive opportunity for huge investors. Moreover, a promising target market, the absence of rivals, and the interest among clients are vital success factors, which means that high revenues and dominance in the region will help such corporations to evolve. In such a way, it can be recommended for such corporations to become partners and cooperate. It can also be viewed as a strategic solution aimed at operating in new markets and empowering a corporation.

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IvyPanda. (2022, September 29). The Investment Fit of DrAIve and UnBlockAfrica. https://ivypanda.com/essays/the-investment-fit-of-draive-and-unblockafrica/

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"The Investment Fit of DrAIve and UnBlockAfrica." IvyPanda, 29 Sept. 2022, ivypanda.com/essays/the-investment-fit-of-draive-and-unblockafrica/.

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IvyPanda. 2022. "The Investment Fit of DrAIve and UnBlockAfrica." September 29, 2022. https://ivypanda.com/essays/the-investment-fit-of-draive-and-unblockafrica/.

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IvyPanda. "The Investment Fit of DrAIve and UnBlockAfrica." September 29, 2022. https://ivypanda.com/essays/the-investment-fit-of-draive-and-unblockafrica/.

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