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    Case Onlink

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    Nikita Semkin
    OnLink initially struggled to raise funding from venture capital firms during their early stages. They did not have a large target market and were in a new technology industry, which VC firms tend to avoid. However, after growing the company by targeting larger customers and increasing revenues, OnLink was better positioned to attract VC investment. Buck updated the business plan and targeted top-tier VC firms that would understand OnLink's story. With a major customer and fulfilling criteria like seeking rapid growth and an IPO, OnLink gained the attention and confidence of VC firms like they prefer for investments.

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    Case Onlink

    Uploaded by

    Nikita Semkin
    45 views1 page
    OnLink initially struggled to raise funding from venture capital firms during their early stages. They did not have a large target market and were in a new technology industry, which VC firms tend to avoid. However, after growing the company by targeting larger customers and increasing revenues, OnLink was better positioned to attract VC investment. Buck updated the business plan and targeted top-tier VC firms that would understand OnLink's story. With a major customer and fulfilling criteria like seeking rapid growth and an IPO, OnLink gained the attention and confidence of VC firms like they prefer for investments.

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    Onlink

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    OnLink initially struggled to raise funding from venture capital firms during their early stages. They did not have a large target market and were in a new technology industry, which VC firms tend to avoid. However, after growing the company by targeting larger customers and increasing revenues, OnLink was better positioned to attract VC investment. Buck updated the business plan and targeted top-tier VC firms that would understand OnLink's story. With a major customer and fulfilling criteria like seeking rapid growth and an IPO, OnLink gained the attention and confidence of VC firms like they prefer for investments.

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    Download as PDF, TXT or read online from Scribd
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    45 views1 page

    Case Onlink

    Uploaded by

    Nikita Semkin
    OnLink initially struggled to raise funding from venture capital firms during their early stages. They did not have a large target market and were in a new technology industry, which VC firms tend to avoid. However, after growing the company by targeting larger customers and increasing revenues, OnLink was better positioned to attract VC investment. Buck updated the business plan and targeted top-tier VC firms that would understand OnLink's story. With a major customer and fulfilling criteria like seeking rapid growth and an IPO, OnLink gained the attention and confidence of VC firms like they prefer for investments.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    TU-91.

    2038 Strategies for Growth and Renewal

    Nikita Semkin 79049K

    Case OnLink __________________________________________________________________


    Even though Buck and the team of OnLink contacted several Venture Capital companies during their first attempt to raise funding they didnt manage to get a single company interested in them, let alone to invest money in them. They managed to get a meeting with with a VC company called Sierra Ventures, but they didnt feel that companys target market was of particular interest to them. As Buck himself said The market was defiantly not there yet and that VCs then were far more interested in business-to-consumer internet companies. Their earlier trials and Venture Capital firms reactions are similar to those described in Bob Ziders article How Venture Capital Works. According to Ziders, VC-firms avoid the early stages of a company or a new technology instead they focus. On contrary to popular belief, they also don t invest in good ideas or good people but instead in good industries. OnLink was then just a good idea with good people in a new technology business. Ziders also mentions that VC-companies are interested in potential companys management, and as happened with OnLink they lost a crucial member when they were trying to close a deal. Partly because they replaced him with a person of lower qualification the deal collapsed. After the initial failures Buck decided to focus on growing the company. They targeted biggest players of the industry while trying to grow and reinvent themselves. He started targeting companies in the Fortune 200 list, trying to find a customer with a strong brand. After that they focused on increasing revenues. They managed to do it raising prices on their products, something that is also suggested in Nil C. Churchills and John w. Mullinss article How Fast an your company grow. During this time Buck also rewrote the business plan and started targeting VC s again. As he put it We followed the strategy of targeting top tier firms with a partner whi would understand our story. This matches to the profile of the ideal entrepreneur represented in Ziders article. He now also had a big company as a client that he could use to gain attention from VCs. Buck also managed to fulfill more criterias of ideal entrepreneur. He recognized the need for speed and he was aiming to an IPO. He also managed to win Daves (from Sierra Ventures) confidence. He also happened to be sought after an another VC. The state of the company was also suitable, as according to Ziders article. They had already established a position and they were in a business with a lot of potential for growth. Something that VCs tend to look for.

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