In this scenario, you are the Vice President for Johnson Angel Investments, LLC and
assistant to an angel investor, Joe Johnson, CEO Johnson Angel Investments, LLC.
Joe Johnson made his fortune in the Internet space. He was an executive for a
company that went public and he cashed in his options and is now worth over $100
You are the Vice President for Johnson Angel Investments, LLC. You have been hired
by Mr. Johnson to help select investments and determine viability of business ideas.
Ms. Samantha Smith
CFO Johnson Angel Investments, LLC.
I am the Chief Financial Officer and responsible for the finance for Mr. Johnson’s
organization. In addition to the mission, the investments must show great promise for
return. If the investment does not have the upside of 10% or higher, we are simply not
interested. Mr. Johnson also has a maximum he is willing to invest. Anything over
$250,000, he will need additional angels before he will invest in the entrepreneur’s idea.
And one more thing, Johnson Angels will not invest in the early stages of a business. If
the concept is not proven, and if they don’t have more than $100,000 a year in sales,
we will not invest.
Mr. Joe Johnson
CEO Johnson Angel Investments, LLC.
Thanks, Samantha. She has been with my company for several years; however, I hired
you to help me create criteria for investing. Our mission at Johnson Angel Investments
is to create a portfolio of new-age companies that represent the technologies of
tomorrow. We want these to be well managed and the concepts to be proven. I believe
that ROI is important; I don’t want to risk my money for a small return. I also want the
company to be local and I want to be able to visit my investment operations from time to
time. If it is a good idea and has minimal risk and great upside, but the capital
requirements are very high, I will be more than happy to invest with other investors. Be
sure the website does not scare away larger capital intensive business ideas. As you
know, all of these issues we have chatted about today are critical, but I am sure you are
aware of other ideas and criteria that we should think about to ensure our portfolio is
strong. Please develop your proposal and submit it to me as soon as possible. I look
forward to your ideas and creativity.
Given the scenario, your role and the information provided by the key players involved,
it is time for you to make a decision. If you are finished reviewing this scenario, close
this window and return to this Week's You Decide tab, in eCollege, to complete the
activity for this scenario. You can return and review this scenario again at any time.
Create investment criteria for Mr. Johnson that will outline what his company will be
willing to evaluate for investing. The criteria will be created by you, which will be posted
on the website to be seen by entrepreneurs.
Here are some examples of criteria, but not limited to the following.
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