III. Discuss these questions.

What are the similarities and differences in the three speculations?

What do you think people will speculate in during the next 20 years?

IV. Work in groups. Find words or phrases in the texts which are similar in meaning to the definitions below. The first group to finish is the winner.

South Sea Bubble	Tulipomania	Wall Street Crash
a very large amount of money set up sudden increase in buying and selling to accept responsibility for go up very fast in the end remained stable	great increase in buying and selling, usually of shares land and buildings flowed quickly copied ended suddenly offered to a lender when you borrow money unable to pay their debts	a powerful business person controlling large companies went up very fast a charge for a short period became very active highest point sold at too high a price selling all of their shares

Part III

Angel investment

Background

Angel Investments plc (AI) is based in Warsaw, Poland. It provides finance for start-up or young companies which need capital to develop their businesses. AI is run by a group of extremely rich people of various nationalities who made their fortunes in the computer and financial services industries. They enjoy the excitement of working with start-ups and small companies, and believe that Central and Eastern Europe offers outstanding opportunities for investment. They are willing to take risks and back projects which seem unusual or extraordinary. However they also expect to make money, usually by taking a stake in the business or a share of the profits.

A team of AI investors is currently considering several proposals. After hearing presentations from individuals and companies, AI will decide which projects it will invest in, and how much money it will give to each one. They have £5.5 million to invest in the projects.

Task

You are either:

an AI investor; or

an entrepreneur who needs finance for a new project.

Briefing notes:

AI Investors

Before the meeting

1 Study the proposals that the entrepreneurs have chosen and discuss which appeal to you most. Consider which are the most risky and which have the greatest potential profits.

2 Prepare questions which you wish to ask each person/company

1 Listen to the presentation of each person/company. Ask questions to help you decide which projects to invest in.

2 Discuss the projects. Decide which to invest in, and how much money you will give to each.

Remember: You have a maximum limit of £5.5 million to invest, but can invest less.

Entrepreneurs

Before the meeting

Choose one of the proposals or present your own idea for a product or service.

1 Prepare a presentation of your product/service. Use the Key Points as a guide for structuring the presentation.

2 Your aim will be to persuade AI to give you the money you need. Try to predict what questions they will ask you.

During the meeting

1 Give your presentation and answer the AI team’s questions.

2 While waiting to hear AI’s decision concerning your request for finance, discuss these questions:

a) Was your presentation effective?

b) Do you think you will be successful?

c) How well did you answer their questions?

d) What problems did you have, if any?

Key points for product presentation