Entrepreneurial Finance

CASE QUESTIONS: ENTREPRENEURIAL FINANCE

General Instructions:  Unless instructed otherwise, please answer all questions concisely and accurately on one page.

Aristotle Onassis

1. What was the key to Onassis’ success as an entrepreneur?  Please give me 5 specific examples when he demonstrated his entrepreneurial talents (e.g., identified new opportunities, took risks, took action, and displayed courage)?
2. How did Onassis take advantage of his knowledge of finance and willingness to take risk to his advantage?
3. How did he manage to live a colorful life mixing business with fun? Please give me 2 examples.

Feed Resources Recovery

1. What is your assessment of the business for the short and long term? Please be specific and state your reasoning.
2. Please give 3 reasons as to why venture capitalists are interested in the overall sector.
3. If you were a venture capitalist, would you invest now in Feed? Why or Why Not? What would you change your mind?
4. Whom should Shane and Ryan approach for financing and how would you prioritize the order between family & friends, angels, the government, customers, and others you can think of?

PunchTab

1. Now that he is raising capital for his second business, how is Kamara’s situation different now versus when he was starting YousendIt?  What are the three primary reasons?
2. Please name three qualities that would make an ideal angel investor for PunchTab?
3. Why does Sturiale say that deal terms (e.g., valuation, % ownership) are irrelevant?  Is that what determines how wealthy an entrepreneur will be? What is meant with that statement?
4. What should Kamaran do? (1) Raise seed with VC; (2) Raise with angels; or (3) Skip seed investment and raise Series A?

Yahoo!

1. If you were a venture capitalist, how would you evaluate Yahoo! as a business? Was it really a no-brainer or were there significant risks with the business?  Please name 3 things about Yahoo! that would have given you concerns.  
2. Analyze the different financing options.  What are the pros and cons of associated with each option?  Which do you recommend?
3. Should David and Jerry take the deal offered by Sequoia? What would you do (have done)?

B&H Textiles

1. Do you think Edward Stahl was wise in his original original investment in B&H? Why or why not?
2. What could Edward Stahl have done to mitigate the consequences of a rapidly changing and competitive textile industry?
3. Should Stahl have exerted more control over the direction of the company? Did he have the experience to properly oversee the management of the company?
4. Are there any actions Stahl could have taken earlier in the business life cycle to warn the town of New Bedford?
5. As a limited partner investing with Stahl and given his commitment to the employees, would you allow Stahl to continue managing and holding this investment beyond 1980?
6. Given the circumstances, which of the following options would you choose and why?

1. Sell the business
2. Phase out the business in order to maximize his commitment to the employees and the town of Bedford.
3. Close the business immediately and sell the assets

Home Nursing of North Carolina

1. What do you think of Medoff’s approach to an entrepreneurial career?
2. Is Medoff buying a good business? Why or why not? How stressed or worried would you be getting all these loans that you would have to guarantee?
3. Review and try to understand the Financials. Who are all the players involved in the deal and what is each party receiving in the deal.? Which player/role do you think is getting the best deal?
4. How could Medoff and the seller come to an agreement?  Or should Medoff walk away from the deal?

The Knot: Case Discussion: Questions

1. Who are these people? What have they done in the past that would lead you to believe that they will succeed? Who is missing from the team?

2. What is the nature of the opportunity? What is the business model? Do you think it will work?