Case Name :      WebTracker

Authors :           William A. Sahlman, Michael J. Roberts

Source :             HBS Brief Cases

Case ID :            915543

Discipline :        Entrepreneurship

Case Length :    15 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

This case describes the evolution of a tech startup, WebTracker, and focuses on the decision of two aspiring entrepreneurs (Julie Stern and Mark Foster) who have just received offers for Venture Capital (VC) financing for the company. These offers, or term sheets, are similar in some respects and differ in others. The two firms offering financing are also different. The heart of the case involves comparing these term sheets and determining the “best deal” for them and for their company. The “deal” ultimately cut will parse the economic rewards of success and implement control and governance provisions that are designed to reduce risk for the VC. The term sheet is a great place to see these complex tools and tradeoffs play out.