Martin Smith Essay

986 Words Aug 5th, 2013 4 Pages
Bocaling, JC
Cruz, Marinel
Espiritu, Bea
Sy, Jayn

MARTIN SMITH CASE STUDY

Martin Smith is newly employed in Greenlane Group, a top venture firm. Mr. Weatherstorm, his senior partner gave him three proposals to assess and evaluate. Martin’s task was to make a presentation about the advantages of the three data communication companies and come up with a credible recommendation on which of the proposals should Greenlane Group choose? The company’s existing portfolio has high risk options. They have been funding companies that requires huge amount of capital which increases the company’s risk. Also it was mentioned in the case that firm is experiencing a “Resource Problem”. Members of investment firm had been part of inner
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As we evaluate the three proposals we have identified two major issues. First is balancing out the portfolio risk of the Greenlane Group and determining the company that would have the maximum return.
The Electra Networks is the most safe option based on the company’s existing portfolio of high risk options. This would also mean the firm would receive least amount of return based on investment required as this is the third round of investment already; the share of an IPO may still not be as big. There is the promise though that this may still break out into a bigger venture given the note on the large return from a previous financing round.
We could also consider Cordernt Systems due to the big technical aspect and the proprietary nature. This option, though, is the riskiest due to its proprietary nature as well. Creating new tech that will need new products is a big investment and also has a relatively larger chance of failing. The finance round may not play a role here given the comment of the A-1 financing rather than a second round.
Uptal Communication’s proposal is unique in a sense that it has a picture of small risk and large reward with the market demand being in place and the market knowing that this technology is a need. The financing round seems to be in the early stage so there is the promise of big returns as well as big valuation eventually. However, their plans are

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