A small start up, pioneer in deploying wireless Internet access hotspots in hotels must decide on its future. It can merge with another start up with a complemenmtary business but lower growth potential, or keep its existing business model seeking external financing and losing control in the process.

Angel investor Dr. Klaus Hommels, had met several times with the start-up founders of Midasplayer.com in London. They discussed the possibility of investing in Midasplayer. Hommels asked himself whether it was just another of the umpteen deals he had seen in the past or whether it was something truly worth gold. The founders had offered Hommels to invest up to €1 million for the third round investment. Zacconi and Rowland's business plan called f...

Note prepared as an aid to instructors in the classroom use of case F-806-E Dr. Klaus Hommels: The Midasplayer Decision.

This technical note, the first of a series of three documents, we review the various factors comprising the usual context for negotianting a venture capital investment agreement for early-stage companies and which must be taken into account in the preparation and the general approach taken in the course of the negotiations.

This technical note aims to provide investors with an overview of what is required for success in early stage investing. Investors in new companies are often referred to as "angel investors" or "business angels". A typical angel investment is from 25k to 500k, usually in a pre-revenue or "startup" company, and may involve 2-10 other angels that also contribute money, time or other resources. Thus a total "angel round" could be 50k up to 1.5m. ...

When it comes to structuring operations, regardless of their nature, venture capital investors basically seek to maximize returns, minimize financial risk, and provide coverage against any conflicts of interest that may arise with the managers of the companies they invest in. To this end, when arranging investment agreements, they negotiate adding a series of control mechanisms and methods for assigning resources. This technical note briefly desc...

This note provides an overview of the early-stage angel market. The objective is to give students a foundation that will support their future efforts to raise or provide early-stage investment capital.

This is a technical note on preparing and delivering a presentation to investors for the purpose of raising capital for your business venture. The standard pitch to professional investors is a brief, well rehearsed Microsoft PowerPoint presentation that might include a demonstration or professionally produced prototype. Such meetings do not last more than an hour. This is not about entrepreneurship, development of business plans or how to market...

This case is about the creation and development of a technological start-up by an Israeli entrepreneur and his Palestinian partner, with the fundamental goal of facilitating peace between the two peoples and contributing to their economic development. It shows the geopolitical difficulties which have arisen and continue to do so in this joint venture, affecting both everyday work and financing.

This FocusCase is about a small Portuguese start-up with a young founder directly out of University, which is focused on the rapidly expanding mobile market. The firm is developing innovative mobile solutions which large firms can use to do mobile business with their customers and offer them mobile applications and services (e.g. mobile banking). Within a short period of time, BrapoTech manages to work with the largest Portuguese firms in four di...