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ONSET Ventures ase Solution Case Solution & Answer

ONSET Ventures Case Solution 

Technological risks:The Company has aimed to use the ONSET III fund in technical industries, however there are huge risks in these industries with advanced technologies being volatile and short term. It is seen that these startup companies are prone to failure at their early stages.
Risk of planning: If there is investment made in the company, which has incomplete marketing and distribution plans and strategy, then such companies will never be able to achieve their targeted sales. In this way, the financial position of the company would become weak as well as the risk of the investment would become risky and as a result, the returns will be lowered.
Risk of inefficient team: The management and the human resource are the major part of company. If the management of the company and other employees are inefficient and lack group cohesiveness, then they will not be able to develop effective strategies for the business and the business would lack operational effectiveness. Due to this reason, the company will never be able to remain stable for a long time in earning good returns and profits.
2. What should ONSET Ventures do with TallyUp? Did TallyUp meet ONSET’s principles, hurdles, or business model to continue or get additional funding? What financing approach should they advocate and why? Should they go with outside VC financing for TallyUp, and if so, on what terms? How much of this financing should it recommend ONSET itself provide? Or or should ONSET Ventures fund an additional $1 million for the development of TallyUp’s beta version of their software? What are the risks for ONSET Ventures for both courses of action?

TallyUp benchmark:

TallyUp has metall criteria and many issues that were uncertain have been resolved, as itwas identified and addressed by the Mann, CEO of TallyUp along with the management team.
In order to get information about the market segment and whether the market potential allows this product to have long term success, Mann gathered the information from the market and he also used direct sources of information. About thirty one customers are engaged in this research process, they were interviewed one-on-one. Thus, this helped inidentifying the market potential and the position of product in the market when it is launched.
Another goal was to proceed the product to the beta stage where a prototype can be built to test the product. As a result,the beta provided the initial technological feasibility of the product. Moreover, with the customers interviewed, they gave relevant information, which could be used for the initial development of the product. This could help to modify the product in its initial stage as per the customers’ needs. Although the business plan is not yet developed this is, however, beneficial in this stage because building a business plan after the product has been developed will result in more effective business model.
In order to hire a competent CEO, an executive recruiter is in place, and the reason to have another outside CEO is due to the reason that the other CEO will have less personal interest than the founder, therefore he can make a better decision.
Corporate partners were hired, which then helped ONSET in minimizing its risk as these partners will invest their own capital and will be working as developing partner.
All these steps taken have mitigated the risks associated with the project and with extensive study, it is concluded that the product is in a position to continue.

TallyUp, what should be done?

The management of the company has analyzed and addressed significant risks of the Tally Up before making decision for investment. The management of the company should consider the risk associated with the capital invested and the risk of the limited partners of the company. As a result, this will help the management of the company to decide whether the management of the company should accept the offer or not………………….

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