Chronicles of the base and the growth of Hotmail Corp, a leading provider of free e-mail services to consumers. Emphasis is placed on its financing history, beginning with its first round of talks with the venture capital firm Draper Fisher Jurvestson, and ending to the fifth round of funding, only six years later. The first round was relatively rapid negotiation to give a seed capital of just over $ 300,000. The second round was in question or who have studied the relationship between entrepreneurs and VC investors. In the third and fourth rounds of investment have been structured as a reserve fund. Finally, the fifth round of funding shows a number of options that managers must take into account, including investments from Kleiner Perkins, strategic funding and acquisition offer from Microsoft. To add to the complications, Hotmail was running out of money and needed a short-term solution (possibly bridge financing) to complete the negotiations. The case deals with each alternative, and asks the reader to appreciate them. "Hide
by Chuck Holloway, Pratap Mukherjee Source: Stanford Graduate School of Business 24 pages. Publication Date: April 1, 1999. Prod. #: E64-PDF-ENG
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