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The Client
 Start-up founded by young software engineers with
little experience and no business plan. Had raised $250,000 in seed capital,
even though the Internet was then unknown to all but sophisticated IT venture
investors.
The Deal
A first round investment of $3,000,000 to complete
R&D and to launch their first offering.
The Need: Professional Management
They needed a business plan that clearly articulated
their vision, not only to raise money but as the roadmap for their first 18
months.
They required introductions to investors, and both
advice and hands-on help with day-to-day matters, especially people issues.
They also required guidance on investor relations.
Finally, they needed to address the leadership deficit
in their CEO, a co-founder.
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The Solution
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Place a professional manager onsite for nine months.
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Facilitate sessions to outline strategy, business
model, capital requirement and partnering options; write and model the final
business plan and offering memo.
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Buffer the strained relationships between team members
and with initial investors.
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Introduce the client to new investors and provide
valuation advice during later fundings.
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Identify and mentor replacement CEO from the founding
team of engineers.
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Provide strategic advice each of three times the
business model was revamped.
The Outcome
During the next seven years, the firm raised over $55
million in private equity, $100 million in an IPO, and completed two
acquisitions.
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