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Case
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Reference no. 9-301-050
Published by: Harvard Business Publishing
Originally published in: 2000
Version: 14 November 2000
Length: 7 pages
Data source: Generalised experience

Abstract

Entrepreneur Janice Schwartz is hoping to grow her start-up company by creating a technical advisory board and compensating members with discounted company stock. Schwartz is considering six candidates that can help her on-line education company in a variety of ways: as a potential customer, a media maven, venture capitalist, and technical advisor. The case suggests ways of compensating the advisory board and raises questions about the rules in the new economy. Addresses potential conflicts of interest for start-up entrepreneurs offering equity to attract capital, customers, and publicity, and to managers of established companies who might be approached with such offers. Raises questions about whether there are new rules in the new economy about building professional networks, and when offers of equity constitute bribery and wrong doing.
Location:
Industry:
Other setting(s):
2000

About

Abstract

Entrepreneur Janice Schwartz is hoping to grow her start-up company by creating a technical advisory board and compensating members with discounted company stock. Schwartz is considering six candidates that can help her on-line education company in a variety of ways: as a potential customer, a media maven, venture capitalist, and technical advisor. The case suggests ways of compensating the advisory board and raises questions about the rules in the new economy. Addresses potential conflicts of interest for start-up entrepreneurs offering equity to attract capital, customers, and publicity, and to managers of established companies who might be approached with such offers. Raises questions about whether there are new rules in the new economy about building professional networks, and when offers of equity constitute bribery and wrong doing.

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Location:
Industry:
Other setting(s):
2000

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