Case Notes/Answers
HOW VENTURE CAPITALISTS EVALUATE POTENTIAL
VENTURE OPPORTUNITIES By Michael J. Roberts and
Lauren Barley
Discussion Questions:
1. Before even reading the case, develop your own set of criteria for evaluating a potential new
venture.
2. Based upon the case, as well as your own model developed above, develop a fully-fleshed out
model of the criteria which should be used. On what criteria do the VCs seem to be in agreement
with each other, and on which do they differ? In what ways does their model differ from your
own?
3. To what degree do you believe that your proposed new venture conforms to these criteria?
, 5-805-055
SEPTEMBER 20, 2004
TEACHING NOTE
How Venture Capitalists Evaluate Potential
Venture Opportunities
This case was written as a vehicle to explore the criteria used by Venture Capitalists (VCs) to
evaluate potential new venture opportunities. It feature interviews with four Silicon Valley VCs
organized around a common set of questions:
The case can be used on either a stand-alone basis as a vehicle for discussion, or it can be paired
with either 1) a business plan reading, in which students are asked to evaluate the business plan
according to the criteria identified in the case; or 2) it can be used in a “project” course in which the
students are exploring their own idea, and it can serve as a template or model against which they
evaluate their prospective opportunity. The assignment questions below and the teach plan given are
for such a use, but the plan can be easily modified to accommodate either of these alternative uses.
Assignment Questions
1. Before even reading the case, develop your own set of criteria for evaluating a potential new
venture.
2. Based upon the case, as well as your own model developed above, develop a fully-fleshed
out model of the criteria which should be used. On what criteria do the VCs seem to be in
agreement with each other, and on which do they differ? In what ways does their model
differ from your own?
3. To what degree do you believe that your proposed new venture conforms to these criteria?
Discussion and Analysis
It is useful to try to tease out a full set of criteria based upon the students own views and insights
as well as the views expressed by the VCs in the case.
One way to start class is to ask,
HOW VENTURE CAPITALISTS EVALUATE POTENTIAL
VENTURE OPPORTUNITIES By Michael J. Roberts and
Lauren Barley
Discussion Questions:
1. Before even reading the case, develop your own set of criteria for evaluating a potential new
venture.
2. Based upon the case, as well as your own model developed above, develop a fully-fleshed out
model of the criteria which should be used. On what criteria do the VCs seem to be in agreement
with each other, and on which do they differ? In what ways does their model differ from your
own?
3. To what degree do you believe that your proposed new venture conforms to these criteria?
, 5-805-055
SEPTEMBER 20, 2004
TEACHING NOTE
How Venture Capitalists Evaluate Potential
Venture Opportunities
This case was written as a vehicle to explore the criteria used by Venture Capitalists (VCs) to
evaluate potential new venture opportunities. It feature interviews with four Silicon Valley VCs
organized around a common set of questions:
The case can be used on either a stand-alone basis as a vehicle for discussion, or it can be paired
with either 1) a business plan reading, in which students are asked to evaluate the business plan
according to the criteria identified in the case; or 2) it can be used in a “project” course in which the
students are exploring their own idea, and it can serve as a template or model against which they
evaluate their prospective opportunity. The assignment questions below and the teach plan given are
for such a use, but the plan can be easily modified to accommodate either of these alternative uses.
Assignment Questions
1. Before even reading the case, develop your own set of criteria for evaluating a potential new
venture.
2. Based upon the case, as well as your own model developed above, develop a fully-fleshed
out model of the criteria which should be used. On what criteria do the VCs seem to be in
agreement with each other, and on which do they differ? In what ways does their model
differ from your own?
3. To what degree do you believe that your proposed new venture conforms to these criteria?
Discussion and Analysis
It is useful to try to tease out a full set of criteria based upon the students own views and insights
as well as the views expressed by the VCs in the case.
One way to start class is to ask,
