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CASE STUDY META CARTA-Graded A+

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Week SIX Written Assignment ENTR510 Entrepreneurship and New Ventures Keller Graduate School of Management Dr. M. Barta CASE STUDY META CARTA 2 Introduction Why has this deal attracted ventu ... re capital? VC is a type of private equity that is capitalized in financing to ensure that there is a high growth potential regarding numbers of the employees and at the same time, annual revenue of the organization. Venture capitalists usually take the risk of financing the starts- up capital to firms with the hope that the companies will remain successful. This deal attracted venture capital because MetaCarta was a young company with a unique product with high barrier to entry. The one million dollars’ initial investment would be in a position of converting the stock at about twenty percent in relation with the price paid venture capital. Therefore, there was the indication that the venture capitalists will be able to pay eighty percent of the stock when they are investing in the first funding. To a venture capitalist this is exactly the type of business they would want to invest because of the uniqueness of the product, the experienced leadership, and the earning potential. Should MetaCarta take the Sevin Rosen offer? I think MetaCarta should take this offer that is being provided by Sevin Rosen. Because of the tech climate at the time and the lack of funding for software companies. Additionally, funding is always a challenge for a new venture, and directly correlates to the growth and future success of that new venture. MetaCarta can utilize the capital in its operations, sales, and marketing. By focusing on these areas for growth MetaCarta will establish market share and can work to expand the market through innovation and continued sales. Besides, through increased marketing, the company will [Show More]

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