Martin Smith Essay

995 Words Aug 5th, 2013 4 Pages
Bocaling, JC
Cruz, Marinel
Espiritu, Bea
Sy, Jayn

MARTIN SMITH CASE STUDY

Martin Smith is newly employed in Greenlane Group, a top venture firm. Mr. Weatherstorm, his senior partner gave him three proposals to assess and evaluate. Martin’s task was to make a presentation about the advantages of the three data communication companies and come up with a credible recommendation on which of the proposals should Greenlane Group choose? The company’s existing portfolio has high risk options. They have been funding companies that requires huge amount of capital which increases the company’s risk. Also it was mentioned in the case that firm is experiencing a “Resource Problem”. Members of investment firm had been part of inner
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The first proposal was from Electra Networks. They aim to deliver phone services through the internet or VOIP. The company has projected a large market segment but the market is now saturated. They were able to raise capital through three rounds of financial funding. The company’s previous valuation was $125 Million but the current valuation was not presented. Also they have power house management team which has strategic alliances with other companies on the industry. Currently, they are anticipating for IPO. Next is the proposal of Uptal Communication. It presented a very detailed proposal including their financial plans. They have been very clear with their vision. They have explained their technology clearly. They will be offering high speed access technology. They have identified their target market and have evaluated that the demand is high. Uptal Communications’ proposal is very ambitious and very expensive to execute. They mentioned that they only need $5 million to breakeven. They only need this financing round and support their capital needs through debt. The last proposal was from Cordent Systems. Unlike the previous proposals, their presentation was confidential and incomplete. They will be using the optical technology which already has a niche market. One of the company’s strengths is their strong engineering team. Valuations would not be higher than

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