Cruz, Marinel
Espiritu, Bea
Sy, Jayn
MARTIN SMITH CASE STUDY
Martin Smith is newly employed in Greenlane Group, a top venture firm. Mr. Weatherstorm, his senior partner gave him three proposals to assess and evaluate. Martin’s task was to make a presentation about the advantages of the three data communication companies and come up with a credible recommendation on which of the proposals should Greenlane Group choose? The company’s existing portfolio has high risk options. They have been funding companies that requires huge amount of capital which increases the company’s risk. Also it was mentioned in the case that firm is experiencing a “Resource Problem”. Members of investment firm had been part of inner workings of each investment. Capacity for the company was strained in terms of handling or doing further such investment work.
Assessment:
PROPOSAL | ADVANTAGE | DISADVANTAGE | | | | ELECTRA NETWORKS | * Least Risky compared to the other two companies * All- Star Management team * Large Market Projection * Reached 3 Financing Rounds * Leveraged relationship to strategic alliances | * Lack of specifics * about the plan * Unclear vision of Market opportunity | UPTAL COMMUNICATIONS | * Small Financial Risk * Clear Market opportunity * High demand for the new product opportunity | * Inexperienced management team * Ambitious plan, which causes great risk * Commands high valuation in the market | CORDENT SYSTEMS | * Specified Market Niche * Strong Engineering Team | * Ambiguous business plan, because it is still unfinished |
The three proposals were from data communication companies. The telecommunications industry is one of the most flourishing industries in the market. However, it is fast paced so firms under this industry must be able to adapt to changes in order to survive the dynamic environment of the industry. Recently, more venture capitalists invest on data