Man is constantly exploring
new possibilities and making
new discoveries. New
technology will shape our
future and open up new
opportunities for business.
But developing a new
technology takes time and
needs a huge amount of
funding. People who want
to finance new ventures
need to borrow a lot of
capital. But it may be
difficult to persuade people
to invest in a project that is
very risky or doesn’t have
the potential to make much
profit.
a. Money you lend to someone so that
they can start a business venture.
b. Full of the possibility of danger,
failure, or loss.
c. The act or an instance of
discovering.
d. Having or showing the capacity to
develop into something in the future.
e. Possibility of future success.
f. A risky or daring journey or
undertaking.
g. Money provided (usually by an
organization or government) for a
particular purpose.
h. To commit (money or capital) in
order to gain a financial return.
1.
What are the benefits of exploring space?
Are there any benefits for business?
A number of scientists dream of building an elevator into
space. A space elevator could link the Earth with space,
and provide an easier way to send people and things up
into space. To build it, you need a very strong cable
which permanently connects a platform in space to a
platform on the surface of the Earth. The space platform
will be at the same height above the Earth as most
satellites. The Earth platform will be on
the sea near the equator. Astronauts
and goods could travel inside a capsule
which moves up and down the cable
between the two platforms.
1.
What do you think of the space
elevator idea? What benefits
could it have?
1. Read the article, An Elevator to Space.
2. What are the two main disadvantages of launching satellites into
space?
3. Is the space elevator a private or government project?
4. What two big problems does Michael Laine have to solve before he
can
build the space elevator?
5. What is LiftPort trying to do to solve these problems?
6. Can LiftPort make money from the space elevator? How?
What do these numbers refer to?
1. 2018
2. $100 million
3. $7 billion to $10 billion
4. $20,000
5. 5 thousand kilos
1. Do you think the space elevator will ever
happen? Why? / Why not?
2. Would you like to travel into space? Why? /
Why not?
1. Capital
2. Start-up cost
a. Careful control of costs, necessary
when you have very little money
3. A tight budget
b. The profit you make from an activity in
relation to how much money you put
in
4. Potential
c. Money you lend to someone so that
they can start a business venture
5. Return on
investment
d. The time needed to get back the cost
of an investment
6. Payback
period
a. The expense of setting up a new
business or new project
b. Possibility of future success
Capital
start-up cost a tight budget potential
return on investment (ROI)
payback period
Finance for Space Ventures
It is very difficult for companies in the private space
CAPITAL
industry to find the necessary ___________
for new space
projects. Private investors don’t like investing in space
Start-up cost is high, and because the
because the ___________
Payback period can be as much as 20 years or more.
____________
Investors want to be sure that they will get a good
ROI
_______________.
However, some millionaire space
enthusiasts will support projects even if there is not
POTENTIAL for making a profit.
much __________
Even government projects are often short of money.
A TIGHT BUDGET.
Most space ventures have to run on ____________.
You will hear an interview with Christoph
Wiesenthal, a partner in the venture capital firm
Copernica. The firm lends money to
companies to help them develop products
using new technology. Before you listen,
discuss the questions below with a partner.
What do you think his answers will be?
1. When you consider new projects or new ideas, what do you look for?
a. A product that will bring a return on investment in a short time
b. A product that will have a large market
2. How long do you usually have to wait to get a return on investment?
a. 1-3 years b. 5-8 years c. 12-15 years
3. What percentage of investments won’t make any return?
a. 90%
b. 50%
c. 10%
4. Copernica invests most of its capital in Information Technology (IT).
True or False.
4. Christoph Wiesenthal says it is more risky to invest in older
companies than in start-ups. True or False
4. Top scientists do not usually have a good understanding of
business. True or False.


When talking about possibilities or
predictions you are CERTAIN or SURE of, use
will and may.
We usually use will / may after think, hope,
and expect.
Example: Michael Laine hopes that he will
complete a space elevator by 2018.

When talking about possibilities or
predictions you are UNCERTAIN or UNSURE
about, use may, might, or could.
Example: In the future, you may be able to
take an elevator to space.
Example: Some people might be interested in
the new product.
Make the following prediction certain, using
will, may, might, or could.
1. In 2020, most people work from home.
In 2020, most people will work from home.
Make the following prediction uncertain, using
will, may, might, or could.
2. There isn’t enough oil to meet world
demand.
There [might/may] not be enough oil to meet world
demand.
will
Ted Foster hopes that he _______
be the first
person to provide a private shuttle service to the
moon. He’s currently working on the designs
will/may be
and expects that the first model _______
ready to fly by 2020. He has already raised $50
will
million, so building a prototype ________
(not) be
a problem. But he can’t be sure of raising
enough money to complete the project: that
could/might
________ be much more difficult. Ted thinks the
will/may be around $150,000 per
price of a ticket _______
may/might
trip. At this price, it seems that there ________
(not) be much demand for the service. Investors
may/might (not) see a big
are worried that they ________
return on their investment.
People in business often have to make predictions
about the future. They will say if they think a
product or idea will be successful or not.
The following phrases are useful for predicting the
future.








It’s possible that…
I don’t think it will…
I expect it will…
I’m sure it will…
I think it’s unlikely…
It will probably…
This will definitely…
It may / It might / It could…
Roll-up laptops will let you take your laptop
to Starbucks in a thermos-style carrier.
Bionic eyes. Maybe we'll be able to see in Xray vision?
THE NEW RETINAL PROSTHESIS, CALLED ARGUS II, MADE BY U.S. COMPANY,
SECOND SIGHT, CAN RESTORE PARTIAL SIGHT TO PEOPLE BLINDED BY A
DEGENERATIVE EYE DISEASE.
Cloaking devices
Distorting the reflection of light off of an object, an apple
can appear to look like a banana, or a fighter jet like a
commercial airliner.
3-D pens mean you can draw stick figures
that really stand out (or up).
3Doodler is the world’s first and only 3D Printing Pen. Using ABS
plastic (the material used by many 3D printers), 3Doodler draws in the
air or on surfaces.
Self-driving cars will let you sit back and
relax.
Google’s driverless car has about $100,000 worth of
extra technology in every car.
See-through smart phone
Taiwan-based, Polytron Technologies' General Manager
Sam Yu showed off a prototype of a see-through
smartphone.
Robot servants
Toyota has a prototype domestic robot that does the
chores. It cleans rooms, cooks, and even plays violin.
Thought-controlled prosthetics will give
greater mobility to everyone.
Brazilian-born Miguel Nicolelis is a professor of neurobiology at Duke
University and a pioneer in the field of brain-machine-interfaces, in which
brain waves from a human or animal control a robot-limb prosthesis.
Intelligent fridge: a fridge that will order
food from the supermarket.
Dilemma & Decision: Risky Ventures
Access this article at: www.yolandamathews.com
Click on Spring, 2013 Class Lists,
then Global Business, then Dilemma & Decision Articles
You may also access the a sample MEMO on my website under Sample Business Reports,
then Letters
Dilemma & Decision: Risky Ventures
GROUP A: Celf Cure
With Celf Cure, the body repairs itself. This company wants to introduce a
new technique to treat people with common diseases such as heart disease.
Doctors take cells from the sick person’s body, treat the cells in a
laboratory with drugs and then put them back into the body. Research
shows that this is very effective. This is an existing company that has
already had success with other medical products.
GROUP B: Space Travel Inc.
Space Travel Inc. is a new company that has developed a spacecraft for
tourists looking for adventure. The spacecraft can carry six to eight people up
into space at a cost of $30,000 each. The cost of maintenance and insurance
will be high.
GROUP C: Fingertip
Fingertip is a new technology for opening doors without a key. People put
their finger to a scanner beside the door. The system recognizes fingerprints
and opens the door for the right people. A group of scientists already have a
design for the fingerprint scanner and they now want to set up a company to
manufacture and sell it. The system costs about $300,000 to install.
1. Imagine you are a venture capitalist. Write a
short memo to colleagues in your company
saying that you want to invest in this venture
and explain why you think it will be a success.
Use the same format as the sample memo
report found on my website.
2. Read the assigned article reading, The Online
Job Market, and Dilemma & Decision article, For
Love or Money.