Netscape’s Initial Public Offering Q1. Why has Netscape been successful to date? What is its strategy? How risky is its current competitive situation? Netscape’s most successful product was the leading client software program that allowed individual PC users to exchange information and conduct business over the internet‚ being the most user-friendly version of similar products. Mid 1995‚ out of the 57million internet users‚ 8million
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FIN310 - Venture Capital - Investing in early stage growth companies – Lecture 1 Brendon Blacker Monday 24 March Introduction to your guest lecturer Brendon Blacker Vice President Macquarie Capital Sydney STRICTLY CONFIDENTIAL 2 Agenda Lecture 1 – Monday 24 March 2014 1. Introduction to Macquarie Capital Lecture 2 – Monday 31 March 2014 — Review questions — Quick recap 2. Introduction to venture capital — What is venture capital? How does it work? 3. Investing in early-stage growth companies
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Case Study: Purinex‚ Inc. Introduction The case asks for evaluation of different financing options. Gilad Harpaz is Purinex’s CFO and he needs to determine which one from the three options provides lowest risk‚ highest company value‚ and short term cash for operations. Purinex is a biotechnological company that has 35 patents pending in pharmaceutical field. It is one of the raising stars that may develop new drug for specific use in diabetes and sepsis. Company has 14 employees. Monthly burden
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strenuous activity and block-out ambient noise. He lined up thirty (30) potential customers who were interested in his innovated earphones‚ and convinced them to sign disclosure agreements. Kevin Semcken‚ Able Planet’s CEO and chairman is seeking capital to finance existing operations for its current products‚ build a prototype for a new product and market both products to new and current customers (Scarborough‚ 2012). Furthermore‚ the bank had changed the terms; Able Planet line of credit 2.5 million
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Background Walnut Venture Associates is a small group of angel investors with backgrounds in the software industry. RBS is a small software company that makes billing and enterprise management software specifically targeted at other software companies. RBS and Walnut are deciding whether Walnut should invest in RBS‚ and then if they are willing‚ whether RBS finds the terms of the deal satisfactory. This case memo illustrates that the venture capitalists are looking for good managers in a particular
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of capital that can provide small business capital. For example a major external source are banks who can provide capital to your business to start up‚ the running operations of your business and for your company’s expansion. Internal sources of finance are any capital that is found within your business. For example you can retain yours profits for backs profits for business’s activities and also you can sell yours assets. Owner’s Funds Owner’s funds is providing your business with capital and
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Manager’s team has the qualified expertise and the skills set to review‚ analyze and evaluate the risk inherent in a potential investee company The speed and the success of the Funding processes primarily depend on the Fund Manager and Staff of the Venture finance company. The Fund managers of the VCFCs are the main drivers of the funding and disbursement processes. Investment recommendations made by Fund Manager are either rejected or approved and ratified by the Investment Committee of the Board
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referred to as dot-coms. A combination of rapidly increasing stock prices‚ individual speculation in stocks‚ and widely available venture capital created an exuberant environment in which many of these businesses dismissed standard business models‚ focusing on increasing market share at the expense of the bottom line. 2- The growth of the dot.com bubble The venture capitalists saw record-setting rises in stock valuations of dot-com companies‚ and therefore moved faster and with less caution than
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need to again raise more money. Like most of the software companies‚ Metapath demands continuously money supply during the premature period of its life. The main financial strategy of Metaph was to raise several rounds of money by turning to venture capital investors: get money from them in exchange for Metapath’s preferred stock and a promise to redeem or convert to commom stock in event of IPO. It had raised $ 9 million in four rounds of financing before 1997‚ in which STI and Bessemer participated
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• The valuation proposed by the Venture Capital investors‚ a number that could easily be inflated by shopping the deal around as the venture capital market is booming. • The Board of Directors provision‚ as Mr. Laracey wants to make sure that in the first years of the Company he will remain CEO‚ and that the co-founders of edocs will be part of it as well. • The share vesting schedule‚ which Mr. Laracey feels represents a lack of faith by the Venture Capital Investors in them. • The Anti-dilution
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