Sale!

Solved HBR Case Study Solution: Strava By Joseph B. Lassiter, William A. Sahlman & Sid Misra (Download Now)

75.00$ 57.00$

Get the Best Analysis to this Case Study/Assignment written by MBA/CFA writers

Compare

Description

Solution Pages: 10

Files that you will download:

2 Word (.docx)

Questions Covered in the Solution

  • Executive Summary
  • Problem Statement
  • Analysis
  • Was the Proposed Deal Fair
  • Which Investment to Pick
  • Angel Investors
  • Venture Capitalists
  • Write your final recommendation to Sigma Partners highlighting your views on the company, management and the deal proposed.
  • Financial Ratios
  • Key Aspects which are to be considered by Sigma before making investment in Strava
  • Valuation of Strava
  • Series A of Financing
  • Investor Preference
  • Liquidation Preferences
  • SWOT Analysis of Strava

Sample of Solution

Strava:

Gainey and Horvath have worked on many potential firms with the nature of raising money for their inception and expansion over the course of their business. Kana Communications is one of the ventures which is funded by the family of Horvath but later they weren’t able to keep hold of it once it went public. Horvath and Gainey being good friends realized the personal and professional crisis of each other and tried to back each other up in any instance. Gainey and Horvath both were having a shared vision of making a social network for the athletes which would be the best of their ventures. Even though they had this idea since long but they were not able to materialize it, as people did not have such advanced technology which would help them in establishing an athlete social network. After getting through some experimental research for the feasibility of the possible ventures, Horvath and Gainey finalized the idea of developing a social network of athletes (Strava). The core theme of Strava was to provide athletes the motivation which would help them in further improving their skills while realizing the progress of other native athletes. The increased number of Garmin watches and heart-rate monitors produced the GPS data, which is to be used by Strava in building a social platform for the athletes. By using the data of cycling, running, skiing and swimming from athletes devices, Strava established the social network of athletes which enabled the users to log, track and compare their performance matrices which their personal goals and fellow athletes.

……

Was the Proposed Deal Fair:  

The venture capitalist partner was demanding extra-ordinary return potential; hence, it preferred growth in the users instead of the revenues. This was due to the fact that the extensive user base would result in long-run growth for Strava while increasing the value of share Venture Capitalists were having in Strava. The valuation proposed by Sigma was considering the riskiness prevailing at the time of Strava’s inception, which was not consistent with the current situation, as the growth of Sigma has now been consistent. Sigma was demanding three time greater return than that of other angel investors and what was targeted by Strava.

……..

Write your final recommendation to Sigma Partners highlighting your views on the company, management and the deal proposed.

Strava has been able to achieve consistent growth in the number of paid subscribers since its inception. Even though, it has targeted only a particular segment of the market which is cyclist athletes. It has been able to create a reputed brand image by maintaining the quality of its services. Rigid base of brand loyal consumers provides fuel for the future growth of its operations. Being an investor, it would be profitable to invest in Strava for the execution of its project expansion Plans. The new plan of covering the running segment of athlete market would add more value to Strava, as most of the current brand loyal cyclists may appear to be the consistent runners which may increase the runner paid subscriber’s base. Moreover the growth in the Strava revenues ensures potential return to the investors.

……..

Reviews

There are no reviews yet.

Be the first to review “Solved HBR Case Study Solution: Strava By Joseph B. Lassiter, William A. Sahlman & Sid Misra (Download Now)”

Your email address will not be published. Required fields are marked *