Magic+Wand


 * media type="custom" key="10474932" ||  ||

=Chis Barnardo and Richard Blakesley= ||
 * =**Founders:**=
 * [[image:chrisandrichard.jpg width="355" height="498"]] ||

Essentially same chip as that used in the Wii
 * Technology**


 * Logic of the offer(s)**
 * 20% of the company for 200,000 pounds, and if they net 600,000 (on $1.2 M pounds sales) the investor sells back 10%**
 * This places a value of 1,000,000 pounds on the firm - Chris and Richard's stake in the company is now 800,000 pounds
 * One wand is priced at 50 pounds
 * 1.2 M pounds in sales represents 24,000 wands X 50 pounds/wand
 * After they net 600,000 pounds investor gives back 10%
 * Chris and Richard now own 90% of company, assuming they didn't do any additional rounds of equity investments


 * How do we figure out valuation after 600,000 pounds netted?**
 * Look at recent //comparables//:
 * //**TiVO's**// market capitalization is $1.3B and P/E is 20.39 (http://finance.yahoo.com)
 * 20 times earnings of 600,000 pounds equals **12 million pounds**
 * Investor earns 1.2 million pounds off of 200,000 investment by selling back 10% of the company and still owns 10%
 * **Chris and Richard's stake is now worth 10.8 million pounds**