Business Case Studies & Business Publications

Alex Laats and NBX Corporation

Dunn, Wendell E. I...

Case

Alex Laats and NBX Corporation

Dunn, Wendell E. III; Shane, Scott

ENT-0005 | Published February 15, 1999 | 26 pages Case

Collection: Darden School of Business

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This case describes the evolution of an entrepreneur's venture-capital fund-raising from seed-stage financing through later-round efforts. The case focuses on where the "action" is in venture finance: the exploitation of social capital by an entrepreneur and investors. Much of the teaching materials on venture finance focus on the economics of financing; while these materials provide useful information about the mechanics of valuation and how to structure venture-capital agreements, they miss the social side of venture-capital investing. The case illustrates the theoretical concept that social capital (i.e., a person's relationship to other people in society) influences venture finance. The case can be used in a class on entrepreneurship or venture finance.