Product details

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Subject category: Entrepreneurship
Published by: Babson College
Originally published in: 2002
Version: 11.05.02
Length: 59 pages
Data source: Field research

Abstract

At age 32, after starting four businesses during and after his Babson College days, Jon Carson knew he wanted to start a business that would somehow make the world better. In 1990, he found what he was looking for - an opportunity to create a demand-side educational advocacy group that would link parents, teachers and students. For the next nine years, Jon Carson worked long hours to grow his enterprise, the Family Education Network (FEN). Always working on a shoestring budget and always trying to attract and retain experienced management as well as junior personnel, Jon, nevertheless, was able to become the key player in the Internet''s K-12 parent-school educational arena by 1999. When he set out to obtain additional venture capital, Jon''s efforts reaped unexpected rewards. He had landed right in the midst of the red-hot dotcom wave. Instead of the US$12 million Jon and his board of directors had set as a goal, FEN brought in US$51 million in new financing. Faced with new competition, Jon hurried to maintain, as well as advance, the FEN leverage in the market and opted to make acquisitions. Though successful in securing thrifty purchases, Jon is hit with missed numbers and a Barron''s cover story that predicted the ''fume'' date for 290 dotcoms. Still with no concrete business model, Jon looks for a buyer. The teaching note includes strategies for case presentation, key concepts, solutions to the assignment question in the case, and suggestions for the most effective ways to work this case into a course.
Location:
Size:
Start-up, early growth
Other setting(s):
1990-2000

About

Abstract

At age 32, after starting four businesses during and after his Babson College days, Jon Carson knew he wanted to start a business that would somehow make the world better. In 1990, he found what he was looking for - an opportunity to create a demand-side educational advocacy group that would link parents, teachers and students. For the next nine years, Jon Carson worked long hours to grow his enterprise, the Family Education Network (FEN). Always working on a shoestring budget and always trying to attract and retain experienced management as well as junior personnel, Jon, nevertheless, was able to become the key player in the Internet''s K-12 parent-school educational arena by 1999. When he set out to obtain additional venture capital, Jon''s efforts reaped unexpected rewards. He had landed right in the midst of the red-hot dotcom wave. Instead of the US$12 million Jon and his board of directors had set as a goal, FEN brought in US$51 million in new financing. Faced with new competition, Jon hurried to maintain, as well as advance, the FEN leverage in the market and opted to make acquisitions. Though successful in securing thrifty purchases, Jon is hit with missed numbers and a Barron''s cover story that predicted the ''fume'' date for 290 dotcoms. Still with no concrete business model, Jon looks for a buyer. The teaching note includes strategies for case presentation, key concepts, solutions to the assignment question in the case, and suggestions for the most effective ways to work this case into a course.

Settings

Location:
Size:
Start-up, early growth
Other setting(s):
1990-2000

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