COMM 300: Digital Everywhere
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Contents |
Digital Everywhere
Case Assignment
1. Short Cycle Process
| Name | Position | |
|---|---|---|
| Who | Jerome Buse | Startup founder |
| Issues | |
|---|---|
| What | Place a value on his startup company |
| Why | To determine if he should accept / reject VC funding offers |
| When | Tonight? |
Case difficulty cube
- Analytical:1
- Conceptual:2
- Presentation:1
2. Long Cycle Process
| Importance | ||
| Urgency | Low | High |
|---|---|---|
| Low | I | II |
| High | III | IV |
Issues
Immediate:
- Get realistic estimate of value of firm
Basic
- Get VC funding
Case Data Analysis
???
Alternative generation
- Fund with own money, and reinvest profits back into company
- Seek limited debt financing - this possible?
Decision Criteria
- WACC
- Can the company grow with this financing strategy?
- What will happen if company does not meet obligations?
Alternative Assessment
If he were to fund the company with his own money, and reinvest profts back into the business, he will severely limit his company's growth.
He likely will not be able to find debt financing at affordable rates, givin the lack of a credit history
| Quantitative | Pos | Neut | Neg |
|---|---|---|---|
| Qualitative | Pos, Neut, Neg | Pos, Neut, Neg | Pos, Neut, Neg |
| Decision | Go, Go, ??? | ???, No, No | ???, No, No |
Preferred Alternative
Predicted outcome: Estimates the appropriate value of firm, is able to find VC funding for an acceptable amount of equity.
Action & Implementation Plan
- Who: Jerome Buse
- What: Calculate value of firm givin three revenue possibilities, and their associated probabilities
- When: Tonight
- Where: At home
- How: Using Professor white
