SecureNet Inc.: Series Round Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

This case is designed for use in the JD / MBA program or in contexts where a mutual understanding of the legal and financial issues is required. The case focuses on the entrepreneur in the security software industry, which is trying to raise a first round of funding in October 2000. The company has been unsuccessful in attracting funding from venture capitalists and is based on a small round seeds and bridge loan from angel investors. Angels have offered to invest $ 1.4 million in a series of convertible preferred stock. The entrepreneur must decide whether to accept the offer angel investors "and to come back to find venture capital. The case involves a shareholder agreement on the proposed series of round, the capitalization of the company after the seeds are round, and five-year cash flow projections for the company. The case can be used in the school environment as a legal contract-development exercises and an introduction to evaluation. The business school setting case can help students understand the complex terms of the contract related to "plain vanilla" form of venture capital. Evaluation can be taught at an introductory level, or it can be more difficult if students are asked to include "what-if" contract terms in their analysis. "Hide
by Susan Chaplinsky, April Triantis Source: Darden School of Business 22 pages. Publication Date: September 23, 2002. Prod. #: UV2505-PDF-ENG