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Case
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Reference no. 395-088-1
Authors: Robert M Johnson
Published by: London Business School
Published in: 1995
Length: 25 pages
Data source: Field research

Abstract

This is the first of two stand-alone cases (395-088-1 and 395-089-1) examining starting-up and financing issues. A business established to supply computer systems to doctors in general practice has embarked on a new, ambitious project to build a medical research database. The business''s track record to date has been mixed, the doctors'' market has been difficult, and the company''s current backers are either not interested in or unable to make an additional investment. Building the database will incur large costs and require a major injection of capital, although the returns potentially could be huge. The case investigates the process and problems involved in starting a business, and asks whether a new venture capital investor should back the business.
Location:
Industry:
Other setting(s):
1980-1988

About

Abstract

This is the first of two stand-alone cases (395-088-1 and 395-089-1) examining starting-up and financing issues. A business established to supply computer systems to doctors in general practice has embarked on a new, ambitious project to build a medical research database. The business''s track record to date has been mixed, the doctors'' market has been difficult, and the company''s current backers are either not interested in or unable to make an additional investment. Building the database will incur large costs and require a major injection of capital, although the returns potentially could be huge. The case investigates the process and problems involved in starting a business, and asks whether a new venture capital investor should back the business.

Settings

Location:
Industry:
Other setting(s):
1980-1988

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