Roizen Case Study

Topics: Venture capital, Sociology, Social network Pages: 5 (1592 words) Published: January 17, 2013
1. When her fiancé tragically died while she was attending Standford University, Heidi Roizen realized that her life had begun to revolve around his (McGinn & Tempest 2010). Abandoning the structure of a closed clique network (Class Slides) with her fiancé as the hub, Roizen began developing her own networks, to regain power over her relationships and her personal trajectory.

Roizen engaged her existing networks of friends (which she had likely developed through the Proximity Principle for network building) to obtain a contact for a desired job of newsletter editor at Tandem (Class Slides). Further, she landed the job thanks to the Self-Similarity Principle (Class Slides), by hitting it off with the manager in charge of hiring.

After attending Stanford’s business graduate program, Roizen utilized her new clique of Stanford graduates and her existing clique of family by founding T/Maker with Royal Farros (her classmate) and her brother.

To promote T/Maker’s software, Roizen expanded her career networks to include press, industry experts and leaders via various software industry engagements. She began a network with Apple by focusing T/Maker towards the Macintosh, and she planted the seeds of a venture capitalist network by garnering venture capital for T/Maker (McGinn & Tempest 2010). While it may seem that Roizen focused entirely on the network arena of career, she did also develop networks based on well-being and task (Class Slides). On the well-being front, Roizen had her family ties, but readily mixed personal and business networks – she would use every chance encounter at the gym, jogging, and other Shared Activities (Class Slides), to expand her networks. Back on the career front, through networked credibility, Roizen eventually went to Apple. Roizen’s 14 years as part of the software developer network came into play when she was tasked to obtain commitment to Apple from nervous developer CEOs (many of which she knew personally). While Roizen may have spent more time developing her networks into Cliques than perhaps necessary, she would likely not have been able to obtain the commitments without her strong ties with them (Class Slides). Later in her career, Roizen again leveraged her software developer network (especially from her Apple experience) in her role as Mentor Capitalist, to help fill recruitment needs in the companies for which she was an active board member. Essentially, Roizen had become a full time network broker. It wasn’t until she had joined Softbank Venture Capital, however, that Roizen focused on making her networks are efficient as possible. She did so by establishing strong inner clique networks which included as members the “nuclei” or brokers of other clique networks, thus creating an overall entrepreneurial structure in “constellation” form (McGinn & Tempest 2010). This allowed her to access opportunities in other networks while only having strong ties to a few in those networks, true to the Rainmaker network model (Class Slides).

2. The strengths of Heidi Roizen’s networks at the end of the case are: •Rainmaker networks will enable Roizen to act as the bridge between venture capital firms and funding sources, without requiring additional close ties (Pfeffer 2008) •The networks are extensive and diverse in terms of breadth, which means Roizen should be less susceptible to being influenced in her new role (Class Slides) •Roizen has fostered strong ties, which means she will be later able to draw on those personal connections (Conger 1998) for more significant requests through her influence and effectiveness (Baker 2001) •Once approved for funding, exploitation networking efforts, transactions and group performance are better coordinated if there is strong trust (Pfeffer 2008) •Roizen herself obtains happiness from maintaining close relationships with so many individuals (Baker 2001) •Roizen’s skills and knowledge regarding Internet ventures will improve through the...
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