tale of lynx

999 Words4 Pages
The Tale of Lynx case The most critical choices faced by James Milmo, early in founding of Lynx are as follows: Going to Business School or not? He always wanted to be an Entrepreneur He knew that a new business is a risk So he wanted to make sure that if business does not work, he should be able to be back to Business School Therefore he did first semester It was a good decision as he was trying to play safe and he knew what he was doing to himself Partnering with Doug Curtis or Not? Doug Curtis was a Veteran Entrepreneur Having worked with Doug on past ventures, James was aware of him and his skills Idea of Real Estate failed and James Milmo does not have great confidence on him No Trust Factor, No Compatibility between the…show more content…
It's Micromanaging! VC is designed to fund early losses only VC's target early, mid and late stage deals depending on their fund "mandate". VC's care-abouts are Management, opportunity, size of market and the capital efficiency of the venture The strategic demand was motivated by following factors: The business was not being close to profitable Advertising downturn hitting with full force Investors (RazorsEdge) are vocal about their nervousness The nervousness of investors created a pressure on the founders James Milmo did not know , that such a situation would come He could have avoided this problem in following ways: By doing due diligence By negotiating on Liquidation terms, to vary by 1x, 2x, 3x and not the first $29.5 M on any sales. By not accepting minority in Board of Directors By Creating External Network of Composite Board for guidance and to get a "Safe" Reality Check In order to keep the VC terms "fair", he should have talked to several firms and seek more than one alternative term sheet. If I were James Milano at the end of the case, my biggest worry is 'How to reach a consensus in decisions?' The issues can be managed by sorting out the following dysfunctions: Absence of Trust Fear of conflict Lack of commitment Avoidance of Accountability Inattention to results These can be further sorted out by creating a Good 'Culture' in the organization, which is based on principles and
Open Document