My last post from the Entrepreneurial Finance course is here. Today, I want to share my summary of the Horizon Communications Corporation (A) case study. This document basically shows the industry background of telecommunication in the 90′s. Basically, it highlights the Telecommunications Act of 1996 … Read More →
Tag Archives: Case study
Entrepreneurial Finance – Centex Telemanagement, Inc.
I’ve started studying the Entrepreneurial Finance at MIT OpenCourseWare by myself a month ago. I wrote my first post about the first case study here (Technical Data Corporation Business Plan). Until now, I think the selection of the case studies are awesome. It presents many … Read More →
Entrepreneurial Finance – Technical Data Corporation Business Plan
The Technical Data Corporation Business Plan is the first case study from the Entrepreneurial Finance course from MIT OpenCourseWare. It is a business plan prepared by Jeffrey P. Parker in late 1980. The case describes that Technical Data wants to raise $100,000 before the end … Read More →
MIT OpenCourseWare – Entrepreneurial Finance
There is an amazing course for people seeking to work in the private equity, venture capital industry and entrepreneurship. The Entrepreneurial Finance is an open course that focus on the finance of start-up ventures. It addresses some of the important questions such as: - how much … Read More →
A VC firm makes money – Accel and Facebook case – Full Posts Listing
If you want to read the whole Accel And Facebook case about valuation, please check the posts in this sequence. A VC firm makes money – Accel and Facebook case – Part 1 A VC firm makes money – Accel and Facebook case – … Read More →
A VC firm makes money – Accel and Facebook case – Part 3
In this third post, I’m going to explain why venture capital firms invest in stages and not in a one-time-big-investment and why Facebook is receiving rounds of investments. Venture capitalists want to have some control in their investments. By staggering their investments in rounds, … Read More →
A VC firm makes money – Accel and Facebook case – Part 2
Remember from the last post: “At the end, we see that Peter Thiel got XXXX % (I can’t find the info, but this does not matter in our discussion of how a VC firm makes money rfom now) of Facebook with US$ 500,000 in June … Read More →
A VC firm makes money – Accel and Facebook case – Part 1
Background information: Accel Partners is a private equity and venture capital firm. It invests in many industries such as Computing, Consumer Internet, Engergy, etc (there are 11 industries). Increadibly, Accel has invested in 197 companies (I did not count one by one but I use … Read More →
Using Venture Capital Method Valuation to the Facebook and Microsoft case
Many of you remember that Microsoft paid $ 240 million for 1.6 percent of Facebook . That was a huge amount of money for a company that is not generating THAT much money for the valuation. Sometimes, a company invest in a startup for … Read More →
Solution: Leonardo needs return of 30% instead of 50%
Remember from our last post. - Carlos told us that his company has 5,000,000 shares outstanding. Leonardo wants 30% of return rate instead of 50%. Let X be the number of shares purchased by the VC. Let’s figure out the TOTAL … Read More →
The Early Stage Valuations by Venture Capital Method
A small Article from Mark Davis from CFJ Gotham Ventures was explaining the needs to protect the investors money by adjusting the risk of a venture with the amount of equity needed to compensate the risk. There is one exercise from the Harvard Busienss School … Read More →
QuantumWhisper.com – The Missing Link Between User Feedback and Code
I met with Barry Pâquet and I was very impressed and amazed by his story of how he started up his company. He was working as a consultant for another software company and eventually, he had a great opportunity to come up with a product … Read More →