Athleta Writeup
Athleta
The key issue facing Scott Kerslake is how to raise $3 million - $4 million in a Series E round of financing for Athleta. His goal is to raise this capital from investors who understand and appreciate Athleta’s business model and culture. A secondary issue, largely dependent the amount of capital raised, is whether Athleta should launch physical retail outlets in 2003.
Kerslake and Joe Teno should raise the Series E round of financing from angels or individual investors. If necessary, they should raise a small amount of debt in the meantime while finding the right set of investors. Kerslake should fund his company utilizing angels and individual investors because of their characteristics: an appreciation and understanding of Athleta as a business, the ability to contribute, and experience in the industry.
The Concept and Business Model of Athleta
Perhaps the most important reason for Kerslake raising financing from angels is that they would appreciate the concept and business model of Athleta. Since its inception, Athleta has been funded by people who support its culture and brand. In the past, Kerslake declined funding in order to build a company with integrity, a decision he later felt was the right one. Accepting funding from angels and individual investors would allow Kerslake to preserve the company’s unique culture and business model. By taking the time to secure the right funding, Athleta could find “partners” rather than just “investors” in the company.
The Accessibility of Individual Investors Kerslake would have access to a wide variety of angels and individual investors. He would be able to get the names of angels with expertise in this sector from existing investors, employees, and VCs. Despite the recent crash, there are still thousands of active angel investors in the U.S. There is also a larger variety of potential non-angel investors in Athleta’s industry, including professional athletes, female celebrities, and owners of women’s
The key issue facing Scott Kerslake is how to raise $3 million - $4 million in a Series E round of financing for Athleta. His goal is to raise this capital from investors who understand and appreciate Athleta’s business model and culture. A secondary issue, largely dependent the amount of capital raised, is whether Athleta should launch physical retail outlets in 2003.
Kerslake and Joe Teno should raise the Series E round of financing from angels or individual investors. If necessary, they should raise a small amount of debt in the meantime while finding the right set of investors. Kerslake should fund his company utilizing angels and individual investors because of their characteristics: an appreciation and understanding of Athleta as a business, the ability to contribute, and experience in the industry.
The Concept and Business Model of Athleta
Perhaps the most important reason for Kerslake raising financing from angels is that they would appreciate the concept and business model of Athleta. Since its inception, Athleta has been funded by people who support its culture and brand. In the past, Kerslake declined funding in order to build a company with integrity, a decision he later felt was the right one. Accepting funding from angels and individual investors would allow Kerslake to preserve the company’s unique culture and business model. By taking the time to secure the right funding, Athleta could find “partners” rather than just “investors” in the company.
The Accessibility of Individual Investors Kerslake would have access to a wide variety of angels and individual investors. He would be able to get the names of angels with expertise in this sector from existing investors, employees, and VCs. Despite the recent crash, there are still thousands of active angel investors in the U.S. There is also a larger variety of potential non-angel investors in Athleta’s industry, including professional athletes, female celebrities, and owners of women’s