Group Assignment Questions
Group Assignment Questions
2. As the case ends in January 2010, the cofounders are considering whether to: (1)
stick with their capital in early 2011; or (2) accelerate fundraising to expand
inventory and product range, enabling RTR to serve a broader set of customer
segments and usage occasions. What would you do about this decision?
1. Dropbox is a late mover in a crowded space. What opportunity did Houston see?
Specifically, what are the key elements of Dropbox’s current business model?
2. Is Dropbox profitable as of June 2010? Are you optimistic about its prospects? How
does your estimate of Dropbox’s current profitability influence your evaluation of
the venture’s prospects?
3. When he applied to Y Combinator (see case Exhibit 2), what hypotheses did Houston
hold about key elements of Dropbox’s business model? As of June 2010, which of
these hypotheses have been confirmed, and which have been discarded? What is your
assessment of the approach Houston used to test hypotheses? Did he waste
time/resources or make notable mistakes? Can you imagine better ways to test key
hypotheses?
4. Imagine that at the same time Dropbox was founded, Google decided to target the
opportunity had identified. How would Google’s approach to pursuing “G-Drive”
have differed from the approach that Dropbox’s team followed?
5. What should Houston do about the decision posed at the end of the case, i.e., creating
a separate version for small and medium-sized business (SMB) customers? What
process should he use to make this decision?
1. Evaluate the potential venture and the progress that Chase has made.
2. What is the business model, and how has it changed between December 1999 and
May 2000?
3. What actions should Chase take as a result of the September operating results?
4. What is the strongest argument Chase could make to a potential investor about the
attractiveness of the venture? What, specifically, should her elevator pitch be at the
Springboard forum?
NanoGene Technologies
1. Evaluate the founders’ decisions regarding the split of equity and compensation
level. As a potential venture investor in the company, would these decisions concern
you?
2. Evaluate the size and composition of the founding team. What is the difference
between being a “founder” and an early employee?
3. Evaluate Paige Miller as an addition to the team, and assess her compensation
demands. Would you hire her on the terms she seeks?
4. Assess the company’s progress on each of the specific issues discussed in the last
section of the case: the hiring process; a compensation policy; the company’s culture.
Specifically, in each of these areas, what should the company do?
1. How would you assess the choices Markus Berger made in setting up the business?
Please evaluate his assessment of the opportunity by looking at analogous businesses
in Europe, use of early MVP customer interviews and surveys and initial tests of the
service. Given the information he had, would you have advised him to stay with a
safer option like staying at Google or the established entrepreneurial company in San
Francisco or take a chance and start Dinr?
2. Given his limited resources, how well did he execute his vision in the first 18
months? What could he have done differently? After reviewing the successes and
failures of the first 18 months of operations, what would you change in Dinr’s
business model, team or financing strategy?
1. Despite having a detailed Founder’s Agreement, the two founders have a falling
apart as soon as they start operations. Why? What do you think about their separation
process? What is your assessment of Nagaraj’s decision not to have a Founders’
Agreement with his new hires (co-founders)?
2. Evaluate the options available to Nagaraj at the end of the case and develop a written
action plan (1-2 pages, clear outline rather than detailed text). The action plan should
consider the fact that you have 3-4 months of cash left. It should include:
• Key messages to investors (including key terms) if you decide to try and raise
money