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 venture capital?
VC is a
...
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 venture 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
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