Homework #4：Draft an Angel Investor Term Sheet

New Venture Description

Q1：Fast Delivery Company is looking on the opportunity that many people have joined the online platform in marketing and e-commerce and there is a gap on delivery of goods. The opportunity that the company is targeting is to bring the goods sold and marketed online to be close to the people.

Q2：Covid-19 pandemic has affected business operations and the economy in general and most companies have collapsed due to their failure to adapt to the new normal. Fast Delivery Company is focused on offering delivery services to the customers by working with the manufacturers and retailers where customers orders their goods online and delivered for them to their doorstep. The company is trying to solve the problem of delays on delivering of goods to the customers.

Q3：Fast Delivery Company target customers are individuals that are working from home due to the cases of lockdown and those business organizations that have opted to venture into e-commerce operations to partner with them for the delivery services. The population that is currently working from home and people considering limited movements order items from stores, retailers and manufacturers and might lack means of transportation. The customers might recommend my delivery company when ordering goods from the retailers or the manufacturers. The business also targets the stores, retailers and manufacturers that are engaging in e-commerce operations to partner with us in delivering goods efficiently to their customers. Social media and website is best in reaching to target customers.

Q4 ：The current market is big now and the opportunity is worth to venture since there are limited firms that are in business and the demand is high because of the influence of the Covid-19 pandemic. The current market is good and is growing at a high rate due to the Covid-19 pandemic and there is a high expectation that online businesses and e-commerce would be common business operations even after the pandemic. In the next five years the market would have grown more than double since people are learning about the benefits of working from home and shopping their goods online where they are delivered in the doorstep.

Q5 ：The biggest competitors in the market currently include the Onboard Courier and Same Day Delivery firms that are offering similar delivery services but they are not enough in the increasing demand in the market. Our commitment is to assure the customers about their safety of goods and efficient delivery based on their provided time limit.

Q6：Fast Delivery Company venture status is only a business idea that I have much researched about it and the results of the research has demonstrated positive outcome showing that there is an opportunity and venturing in to it can be a success. The idea is viable and is worth investing in the business because there is much possibility that the market would grow in the next five years after the high growing rate during this pandemic period. Taking advantage of the current opportunity would ensure that the business brand awareness and reputation has grown and in the next five years the customers are already loyal to the business.

Q7 ：The capital needed to venture into the business is approximately $200,000. The capital is enough in acquiring the 2 trucks and 4 pick-ups that would be used for the delivery services and other crucial requirements

Sources of Funds		Uses of Funds
Source	Amount		Use	Amount
Personal Savings	$40,000		Purchase of 2 trucks	$65,000
Family support	$60,000		Purchase of 4 pickups	$70,000
Bank loan	$70,000		License and Registration	$800
Government grant	$30,000		Marketing	$20,000
Total	$200,000		Miscellaneous	$5,000
		Cash reserve	$39,200
		Total	$200,000