Project to achieve is starting to provide information management solutions for schools. Its founders saw the need for software-as to control the amount of information needed to manage the school and to connect parents, teachers, and students in a more effective way. Initially funded by angel investors, the project raises achieve his first official round of funding and needs to establish a solid assessment. This case describes the economics of the business and provides the necessary background for the data business model and arrive in the assessment. Explores quantitative considerations venture financing: 1) the value of the shares issue illustrated neutrality, 2) value is calculated from a series of raw returns, and the appropriate discount rate is selected based on comparable, 3), decision trees are used to emphasize the importance of probabilistic thinking, and (4) subscriber model compared with the annual free cash flow model for determining the financial value as a decision-making tools for business decision making. In addition, the conditions for the discussion of more qualitative questions related to the selection of investors. In particular, the comparison of the two founders of the options: an infusion of additional capital from existing and new investors or investments of a potential strategic partner. Each option has very different implications for businesses in the future. "Hide
by Mihir A. Desai, Kathleen S. Luchs Source: Harvard Business School 14 pages. Publication Date: 08 January 2001. Prod. #: 201080-PDF-ENG
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