Case Notes/Answers
ONSET VENTURES by Michael Roberts Nicole Tempest
Discussion Questions:
These questions can be used to highlight these issues for students:
1. What is Onset’s model for the factors that create an attractive opportunity?
2. Do you agree or disagree with each of the elements of this model?
3. How much should Onset raise in this latest fund?
4. Evaluate Onset’s actions with respect to TallyUp so far. How should the firm deal with the
issues presented at the end of the case?
, Onset Ventures
Teaching Note
The Onset Ventures case (“Onset”) is an excellent one to use to explore both the “early stage”
venture capital process, as well as the start-up process for any high potential venture.
The case describes the principles and philosophies that have been developed by this early
stage VC firm through years of trial and error. The founder – Terry Opdendyk – is a very analytical
and very articulate venture capitalist. He is able to draw out many lessons from his experiences that
inform the investment process at Onset – the case describes these in detail. The case presents an issue
which Onset’s principals must resolve – the question of how much money to raise for their next fund.
In addition, the case describes one of Onset’s investments in detail – TallyUp. The company
has been incubated by Onset for the past year, and the firm must now decide how to move money to
invest on what terms and whether or not to involve other VC firms in the investment.
Assignment Questions
These questions can be used to highlight these issues for students:
1. What is Onset’s model for the factors that create an attractive opportunity?
2. Do you agree or disagree with each of the elements of this model?
3. How much should Onset raise in this latest fund?
4. Evaluate Onset’s actions with respect to TallyUp so far. How should the firm
deal with the issues presented at the end of the case?
Pedagogical Overview
The Onset case can be used to discuss a number of interesting issues:
• How venture capital firms work – where the money comes from and goes to, and
how the general and limited partners earn their returns;
1
ONSET VENTURES by Michael Roberts Nicole Tempest
Discussion Questions:
These questions can be used to highlight these issues for students:
1. What is Onset’s model for the factors that create an attractive opportunity?
2. Do you agree or disagree with each of the elements of this model?
3. How much should Onset raise in this latest fund?
4. Evaluate Onset’s actions with respect to TallyUp so far. How should the firm deal with the
issues presented at the end of the case?
, Onset Ventures
Teaching Note
The Onset Ventures case (“Onset”) is an excellent one to use to explore both the “early stage”
venture capital process, as well as the start-up process for any high potential venture.
The case describes the principles and philosophies that have been developed by this early
stage VC firm through years of trial and error. The founder – Terry Opdendyk – is a very analytical
and very articulate venture capitalist. He is able to draw out many lessons from his experiences that
inform the investment process at Onset – the case describes these in detail. The case presents an issue
which Onset’s principals must resolve – the question of how much money to raise for their next fund.
In addition, the case describes one of Onset’s investments in detail – TallyUp. The company
has been incubated by Onset for the past year, and the firm must now decide how to move money to
invest on what terms and whether or not to involve other VC firms in the investment.
Assignment Questions
These questions can be used to highlight these issues for students:
1. What is Onset’s model for the factors that create an attractive opportunity?
2. Do you agree or disagree with each of the elements of this model?
3. How much should Onset raise in this latest fund?
4. Evaluate Onset’s actions with respect to TallyUp so far. How should the firm
deal with the issues presented at the end of the case?
Pedagogical Overview
The Onset case can be used to discuss a number of interesting issues:
• How venture capital firms work – where the money comes from and goes to, and
how the general and limited partners earn their returns;
1
