This first case study introduces
us to the case method of learning. At the heart of our discussion
on Yahoo!, we will examine the difference between an idea and
opportunity. Using Sahlman's Concept of Fit, we will analyze the
situation and select from the founders' seed financing options.
Guest speakers for this class include Yahoo! founder Jerry
Yang.
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Relevant
Textbook Chapters
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Discussion
Questions
- In the last class we studied improvisation. How did Jerry
and Dave improvise in starting Yahoo?
- What makes Yahoo! an opportunity and not just a good idea?
How will it make money?
- What are the major technology, market, team and financial
risks of this venture?
- What are the advantages and disadvantages of each of their
funding options?
- Should Jerry and Dave accept or not accept Sequoia's offer?
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Main
Case Study: Yahoo! 1995: First Round Financing
This case examines the challenges that Yahoo! founders Jerry
Yang and David Filo faced in analysing and choosing a first-round
financing option. Under time pressure, the founders must analyze
and choose their seed financing: selling their company, partnering
with a corporate sponsor or starting an independent business.
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Biodiesel
Inc.
Biodiesel Inc. is a mini-case study that involves three UC
Davis students exploring an opportunity in biodiesel, an renewable
organic product that can replace or complement original diesel
fuel. The students come up with a business model starting
with local producer's cooperatives. |
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Tellme
Networks Inc.
Tellme, an early-stage, venture-backed company based in Silicon
Valley, leverages speech recognition technologies to provide:
1) a "voice portal" with news and other information accessible
through any telephone, and 2) turnkey application development
and hosting services for other companies that wish to voice-enable
customer service and marketing applications. In the fall of
2000, Tellme management is debating a number of strategic
issues. |
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