Frank Addante Case

Topics: Value added, Stock market, Equity Pages: 10 (4007 words) Published: March 9, 2011
1. Entrepreneurial Motivation

Frank Addante got his motivation to work from financing his college life in the first years. He worked on his own, sold and installed car alarms and automatic starters. From this time on he continued to earn money through ad-hoc jobs to make his way through college, but he was always conscious for good ideas, which he could transform into businesses. This chance was given when he installed some high-speed communication lines for an office where two mar-keting companies had their headquarters. When the owners of the two companies were argu-ing about any new ideas, they came up with a “search engine” for the internet. Addante was listening to them and came up with his own interpretation of the “search engine”. At this time he did not want any compensation for his work, even though he had to learn a programming language. So Addante’s motivation in getting involved in the “search engine” project called Starting Point was not about big salaries, he was fascinated about the idea that he could create something which other people could use online, as he said.

After the first few months Addante began to realise that the motivation to create something is not enough for financing his life, so he added the motivation of earning money to his motiva-tion-portfolio. Soon after 1997, when Addante’s two co-founders got into discussion with each other, Addante learned that equity is an important factor of a venture. Another motiva-tion he got was when his co-founders got more and more distanced to each other. Addante wanted to construct a team that could work together and that is not acting as separate indi-viduals.

For the founding of his second venture, Addante kept his motivation to create something new, which fulfils people’s needs. In addition the equity of the new company was almost split and Addante got a fixed salary, which reflected the motivation of Frank Addante to earn money with his venture. Furthermore a motivation of Addante became starting a venture with an ex-perienced IT worker and to profit from Cary’s know-how about the people management and day-to-day accounting. At the time where the provision of capital from Cary’s business began to decline and the growth of Addante’s second venture began to struggle, he generated an-other motivation. His new goal was to secure enough funds for his next venture.

When Frank Addante started his third venture the motivation of creating something new got into the background because L90, as it was the result of the merger between Frank’s second venture and the biggest customer of it, was not something completely new. He also trimmed back his motivation of getting equity of his venture. First, Addante was offered half a million shares of fifteen and a half million shares but he denied this offer and finally got a million shares after his part of value added was included. This was caused by Addante’s motivation of being tutored. His partner, Mr. Bonham, was a great teacher for Addante and showed Frank how he could manage the sales end of the business. With this in mind Frank Addante had no worries and troubles and could concentrate at listening and learning and adding value when possible. But Frank also was able to work on his own. Another motivation that made Addante joining the venture was that funds were rose from outside funders. This development secured fast growth of the company and enabled Bonham and Addante to hire people and purchase equipment needed immediately. Having this outside funding Frank could hire Tim McQuillen, a man who got a great part in Addante’s further career.

After leaving L90 Frank Addante again wanted to start something completely new. In his forth venture, Zondigo, Addante created the motivation of being “The Guy”. This means that he wanted to stand in the front row, handling all the big decisions and taking on the challenge of creating and raising a business. In addition Addante again was chasing his motivation for...
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