Waze: Product Evolution and Fundraising Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Waze developed a free smartphone mapping program that gave consumers turn-by-turn directions and real time traffic info. This digital map compiled driver-generated data from the community of users of Waze to relay continuously updated info on states like traffic accidents, speeding- camera places, and building zones. By month of October in 2012, Waze had 10 percent of the U.S. iOS mapping market and had extended to provide services to over 28 million users, with an expectation of reaching 100 million "Wazers" by the year 2015.

Noam Bardin, Waze's CEO, understood that a new capital injection would be needed to direct it through the next period of growth and recognized the business's emergence as a leader in its space. Waze's previous fundraising attempts were filled with challenges.

In the month of October 2009, just one day preceding Bardin expected accepting a Series B term sheet, Google released Google Maps Navigation. Investors felt Waze would eventually be disregarded out of the market by what would now be dealt as the industry's 800-pound gorilla and negated their offers for funding.Now, however, in 2012, Waze's strong market position enabled Bardin to negotiate from a position of strength with prospective investors. In December 2012, Bardin procured a $100 million Series D round of funding at a $700 million pre-money valuation. Prior to finalizing the conditions of the deal, but, the CEO hesitated. With the draft term sheet before him, Bardin believed, "Have I exhaustively assessed all of the changes which may ensue by taking this money?"

Waze Product Evolution and Fundraising Case Study Solution

PUBLICATION DATE: January 09, 2014 PRODUCT #: E500-HCB-ENG

This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP