Martson venture partners' Case Study Analysis
Introduction
Marston Venture Partners is the capital arm of one of the leading European business schools which provided investments in initial as well as grown businesses that need marketing funds. They are leading investors in seed and pre-seed investments and have managed a diverse platform. It has come up with four proposals from different sector industries having a different heights of their product and business development. (Sadler-Smith, 2021)
Charles Poulton, the new Investment Executive has to undergo a deep investigation to accept the most demanding proposal which will lead to an entrepreneurial opportunity that will work in the favor of Marston Venture Partner. Other competitors’VCs are also heading quickly so a timely decision needs to be taken to grab the best opportunity.
Summary of four proposals
Proposal 1: ProCom has trained personnel in the system design and marketing field. They are developing software for providing business training in strategies, sales, and marketing. The current market for this in Europe is $500million and is estimated to grow rapidly. They would use animation in, a simulated business environment.
Proposal 2: Oxiden has developed software and patented it which detects corrosion in plants through different sensors. The algorithm is developed but it will take two years for the software platform to be written and field tested. They claim it to be a unique real-time algorithm. Although many management systems already exist. The system will require buyers to alter some of their methods. But timely detection would enable the managementof corrosion.
Proposal 3: Darians Holdings have developed software that aids courier companies. The shippers would leave a barcode on unattended parcels and the recipient can receive them in a closely available Darian locker bank. It uses electronic lockers. Revenue would come from selling lockers and licensing management software and maintenance contracts. The company has already received 500000euros from a French company. Currently, it is ona trial basis in some companies.
Proposal 4: Glencoren has developed three main projects first one being a robotics platform that aids surgeons in minimally invasive surgeries with the market growing at 20% per annum. Another product is pre-operative planning software which uses a patient’s CT scan to plan the operation. Another product is knee and hip replacement product both priced at 100000 euros. The knee and hip replacement market are growing at 7% while minimal invasive knee surgery is at 100% although of a low base.
The best option to pursue
The best opportunity to pursue is proposal number three “Darian Holdings Limited”. Darian’s has developed a software program that aids the courier and haulage companies by providing an alternative to unattended parcels. They need the assistance of banks employing secure lockers equipped with electronic lockers having access through bar code or pin. (Shavarani, 2018)
The criteria work as if the location was unattended during a delivery service, the rider will leave a bar code at the location, and then the recipient can, anytime, receive its parcel by scanning the bar code at the nearest Darian locker bank. They can also avail the facility for returning the parcel at the same, located at areas near railway stations or business parks.
The expected revenues are to be generated from selling electronic lockers, licensing the software, and maintaining contracts. The estimates for average selling lockers are meant to be 8000 euros for a bank with 16 locker doors, software licenses are estimated to be sold at 1500 euros plus 150 per annum for the license fee, and maintenance charges of 1200 euros per annum.
The maintenance team comprises two energetic and experienced personnel, including Stuart Montague who has worked in a leading IT consultancy. Another is Dan Barton who has experience in international operations with the oil and gas industry.
The major advantage of investing in this firm involves an innovative and technical solution to a major problem that has not yet been addressed properly. Many European logistic firms are experimenting with a clear solution for remote and unattended parcel deliveries but have not come up with any outcome yet. The Darian system has been opted for by some catalog retailers and post offices in Germany and UK ona trial basis. Big e-commerce websites like Amazon and Walmart have also adopted similar ideas for deliveries which proved successful. It marks an unsaturated market with very fewer competitors and low traffic so more chances of establishing and creating a brand legacy thus generating profitable revenue and aiding the Marston Venture Partner. Moreover, it aids the rider and supplier both in avoiding repetition or confusion as the world is advancing toward IT and technology. It is an easy reliable technique and banks are safe as well
Martson venture partners' Case Solution
Darian has received an investment of 500000 euros (for 40% of the company) from a French group that produces left luggage lockers. The company might have seen the potential so decided to invest while other proposals are lacking this profile.
The least considerable proposal
In my opinion, the least reliable proposal is the 2nd one “Oxiden”. They have developed software that can detect corrosion in plants and machinery using a set of sensors. This can enable plants to timely detect the error and fix it before a big mishap happens. Every type of process control industry can utilize this software for their mechanized parts as it is very efficient. Oxiden has patented its software and claimsits real-time algorithm to be unique and different from a range of corrosion management operations already existing. The idea although unique and innovative wasnot worthy of investment for Marston. The major drawback lies that the idea is patented but is not fully developed. The algorithm is designed but writing the software platform and its testing in the field would require nearly two years. Moreover, a major disadvantage also rests with the fact that the client will have to change some of their process methodologies to cope with the software. (Baier, 2020).....................
Martson venture partners’ Case Study Analysis
This is just a sample partial case solution. Please place the order on the website to order your own originally done case solution.