Financing A Silicon Valley Start-up

Questions:1.What is the nature of the opportunity? What ar the strengths and weaknesses of the company?s descent model?2.Why has TixToGo had trouble gaining momentum?3.What should Lu Cordova do prototypical? What next?4.How would you value TixToGo? From whom and under what terms should the company gain ground funding? How much should they raise?5.What general lessons about entrepreneurship and jeopardize financing can you draw from this case? Be particularised in your answers.

Answer:1.On seeing the lack of web work for ticket booking and also unexplored niche markets requesting for spot reservation of venues with less than 200 seats, TixToGo designed a self-service site to individuals and organizations to facilitate collection of registration fees, ticket purchases, donations or sign-ups for activities over the Internet, believing that the dynamics of the Internet would allow fuddled growth potential and lucrative returns.

The strengths of this company?s care model are on its market potential and competitive advantages. Responding to event organization, the potential tar experience markets were enormously huge as portrayed in Exhibit 6, addressing to an around $120 millions of revenue. Also, on that point were not existing rivals competing in the market. This would give them a ? runner mover advantage?.

Nevertheless, the company is weak at its focusing level.



Without a top-notch management team at the beginning, they failed to obtain suitable venture capitalist or bridge fund to body forth their business. Moreover, they are unable to improve the site infrastructure and ask with the legal and administration work. These pitfalls would limit the expansion of the company?s services and seriously affect the scalability, profitability and sustainability.

2.Due to an over-$200k deficit in year 1998 and 1999, TixTiGo, at the time of decision, failed to sustain its business with the live cash or consider further expansion. There are several reasons: (1) the two co-founders failed to finance sufficient funds...

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