This disguised case centers on Ellen Grant, who has recently launched a new venture capital (VC) firm, Everglow Ventures (Everglow). Everglow is not a VC firm “as usual”; the founders are seeking to disrupt the VC industry and address some of the shortcomings of the traditional interactions of VC funds with investors and start-ups. Along with proposing a rolling fund structure to investors with n
GoStage Ventures Fund LP (GoStage Ventures), a global venture capital firm, has a portfolio company, Motocredible Technologies Pvt. Ltd. (MotoSpin), that is pursuing a much-needed Series B financing round. MotoSpin was founded in Mumbai, India, to create a trusted and transparent online marketplace for pre-owned scooters, motorcycles, and electric vehicles (EVs). After several months of fundraisin
This technical note introduces convertible note financing for early-stage start-up companies. These unpriced securities offer significant advantages related to delayed valuation, greater speed, and lower cost of completion compared to venture capital financing. As a result, the number of early-stage companies raising capital through convertible notes over the past decade has greatly increased.
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Pharmaceutical companies have historically relied on their ability to research, develop, manufacture, and sell drug products. Developing a successful drug is a complex and lengthy process, with no guarantee of success, and the total cost of approving a new drug is estimated at $2.5 billion, and rising. This technical note offers an overview of changes in the biotechnology industry related to drug
In this field-based case, the founders of udu, Inc. (udu—pronounced "you-do"), a company whose proprietary technology helped private equity clients source deals by identifying target companies and overlooked opportunities, and by shortening the business-development cycle. Clients who had found success with udu's help raved about the technology, but despite their product's promise, the founders wer
When should a board of directors push for a CEO change? This case explores the experiences of the board of directors of a popular and successful lifestyle-brand start-up as it grapples with a public-relations crisis after a young female CEO makes serious missteps in a public forum. This case allows for a discussion of the role and responsibilities of a board of a start-up backed by venture capital
This case is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. Anni Anderson is the founder and CEO of Selah, a software and application company that aims to support users with everyday communication. Selah is a relatively young start-up that saw explosive customer-acquisition grow
This case is part of the Giving Voice to Values (GVV) curriculum. To see other material in the GVV curriculum, please visit http://store.darden.virginia.edu/giving-voice-to-values. Anni Anderson is the founder and CEO of Selah, a software and application company that aims to support users with everyday communication. Selah is a relatively young start-up that saw explosive customer-acquisition grow
This field-based case follows the start-up dreams of Melanie Perkins, a young Australian woman who came up with a big idea: What if she could create a simple, collaborative, online tool that anyone could use to design like a pro, even without experience? Existing design products were either too expensive and complicated to learn or produced basic things that looked bad. But how could Perkins and h
This case, which builds on “Yearbook Inc. (A): The Start-up Years” (UVA-OM-0369), follows Melanie Perkins as she visits Silicon Valley, works to find solid tech talent to build her product, and tirelessly pitches her one-stop-shop design tool, Canva, to prospective investors. Could she and her team get Canva off the ground?
Sandra Martinez, a junior partner in a new biotech venture capital fund, is working on a due diligence report on a new genetic testing firm that plans to launch a direct-to-consumer (DTC) platform for assessing cancer risk. She is mildly concerned about some bad publicity around a faulty chip used in DTC genetic testing, then becomes more worried as she looks deeper into genetic testing itself. Sh
In April 2016, Mark Parker, an experienced private-equity investor, is considering an investment in MedMetric, LLC (MedMetric), a seed-stage health care information technology company. The company has a Software-as-a-Service (SaaS) product that facilitated reimbursement for Medicare Advantage companies (MAs), private firms that provided an alternative way for senior citizens in the United States t