StudyBlue (B) Case Solution
Part A of the case opens in July of 2009 with Becky Splitt, CEO of StudyBlue, dealing with a series of challenging choices. These consist of: identifying the suitable organisation design to generate income from the StudyBlue website, which consumer section to target, and what does it cost? brand-new capital to raise (and from whom). The case informs the story of how StudyBlue was started as a side project of Chris Klündt and Steve Wallman in 2006 and how it developed into a full-fledge start-up with 7 staff members. Throughout 3 years, StudyBlue establishes a healthy following of college users and includes substantial brand-new functions and performance. Nevertheless, with end of the case, there is still uncertainly around how rapidly it can grow profits later. Offered brand-new rivals at hand and the window for Series A financing round wrapping up, Splitt needs to make her choices rapidly.
Part B of the case explains Splitt's choice of picking a funding partner for StudyBlue's Series A financing round. She needs to weigh the advantages and drawbacks of partnering with a fully grown angel financier group where she would deal with less limiting terms than partnering with an equity capital company however likewise less cash and subsequently a much shorter operating runway. Her other alternative is to partner with an equity capital partner which will ensure smart consultants, hiring assistance and more dollars however likewise more limiting terms and a prospective requirement to move the business from Wisconsin to the west coast. Lastly, Part B of the case feature the numerous modifications in the competitive landscape in between 2009 and 2010, consisting of the intro of 2 brand-new gamers and the acquisition of numerous others by big business entities.
This is just an excerpt. This case is about Business