Sequoia Capital, a venture capital firm founded in 1972, quickly grew to become one of the most storied venture capital firms in the world. Fueled by a strong culture, Sequoia's investment track record included the names of some of the largest global successes. However, times were changing. The venture capital industry at large was facing several challenges. Additionally, Sequoia had made some major decisions to restructure the firm. In a market environment in which investors in venture capital were increasingly cautious, Sequoia seemed to be making several changes to their core identity as a firm. What would all of this mean for the future of Sequoia, and would the firm still be able to maintain their historical dominance in spite of several headwinds?
Ariel Fristoe co-founded the Out of Hand Theater ensemble (OOH) in Atlanta in 2001. OOH began as a traditional theater nonprofit, which Ariel and her colleagues ran on a shoestring budget. But over the years, the group transformed: First, around 2010, OOH pivoted to science outreach. Then, around 2018, OOH shifted its focus to racial and economic justice, and staged a series of shows in Atlanta community members' private homes.
How do venture capital and private equity funds actually work? This Technical Note covers the "when, who, and how" details: "When": fund length, extensions, and when investors can no longer initiate new investments. "Who": who is in the General Partner entity, the importance of the firm's Management Company (the owners of the firm), how fees and carried interest flows work, and the Limited Partners' Advisory Committee. "How": key person clauses, invested capital vs, committed capital, what happens when an investor defaults on its commitment, how multiples are calculated (MOIC vs. TVPI), the difference between realized and unrealized gains/losses, how fund distributions work, and the difference between distributed and residual value.
Entrepreneurs often struggle with the question of whether to found solo or alongside one or more cofounders. This case is comprised of three vignettes detailing common founding scenarios: the first-time technical founder; the serial commercial founder; and the MBA co-founders who are friends first. Coupled with robust research, this case offers students the opportunity to break down the roles, responsibilities, relationships, and resources of a founding team and determine when and why they should found alone or seek a cofounder.
After taking over from their parents, Sebastian Maxwell and Alexandra Ito, CEO and COO of Minnesota-based outdoor adventure brand Tenkara, must decide how they want to resource and grow this formerly family-run business. After outdoor activities exploded during the COVID pandemic, Tenkara boasted a growth curve that could put them on a VC-backed path. But is that the right choice for these founders and this business? And if so, which of two Series A term sheets should they accept?
During a challenging fundraising environment, the DexAI founders received two term sheets with nearly identical economic terms but very different legal ones. The entrepreneurs had to navigate: representations and warranties (their personal guarantees that the company's intellectual property was free and clear and that its financial statements were accurate), investor control terms (protective provisions, Board of Directors composition, and matters that required investor approval), and how their founders' stock was treated (a buyback right that effectively vested their stock and how that might change upon a company sale/merger/IPO, the termination of a founder, or a founder's resignation for "good reason"). The case also explores a possible intellectual property violation with one founder's prior employer.
Every Harvard Business School first-year student enrolls in "The Entrepreneurial Manager," a course that focuses on leadership in entrepreneurial settings. This document outlines the course's goals and approach.
After sourdough bread, countertop chive gardens, and vaccine selfies came a pandemic-era trend that everyone seemed to be in on: one daily chance to guess a five-letter word and crow about your success on social media via little green and yellow squares. From a personal game between a developer and his girlfriend to a global phenomenon in just a few months, Wordle seems poised to outlast its pandemic peers when The New York Times makes an unexpected bid to acquire it. Dissect the journey of one programmer and his viral product as he debates a 7-figure exit before earning his first dollar of revenue.
Megan Murday, the founder of Metric, an environmental, social, and corporate governance (ESG) analytics startup, must decide which customer segment to target as a beachhead market. She received positive feedback from a Swiss venture capital (VC) firm, indicating their immediate interest in using Metric's software. However, Murday also considered private equity (PE) firms, impact investors, and startups as potential beachhead markets. PE firms had a large market size and a high willingness to pay, while impact investors were already aligned with Metric's mission. Startups were socially conscious and forgiving of early-stage challenges. This case provides background on the burgeoning ESG sector and the various standards and metrics being proposed to standardize reporting.
Consumer Reports (CR) is a nonprofit organization that traditionally provided independent testing and research on consumer goods. With the need to diversify its audience and revenue streams CR partnered with market research firm Spark No. 9 to identify potential digital products and services for younger audiences using digital marketing tests. This case provides background on various social media platforms and their advertising offerings along with details on running "smoke tests" to validate product concepts before investing resources to build them.
This workshop allows students follow a modified version of Google Venture's Brand Sprint to build a startup brand from scratch. Details on the elements of a brand are discussed, including defining the values and personality of the venture, as well as developing a clear voice and visual representation. The exercise emphasizes the importance of crafting a brand that aligns with the company's purpose, resonates with the target audience, and differentiates the venture from competitors.