Product details

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Abstract

After over three years of creating and building an Internet mapping business in his spare bedroom, Sean Phelan realised that Multimap needed to enter a new phase in order to expand. He had been involved in two previous discussions with venture capitalists (VC''s), but his focus on technical development rather than business planning had resulted in these discussions faltering, with the VC''s raising questions about revenue generation that he was not in a position to answer. Up to then, Sean had not been concerned, preferring to maintain his independence however, by the end of 1999, his years of intensive work and development were threatened by the onset of competition in the Internet mapping sector. In order to grow the business within the UK and to expand into Europe, Sean had accepted an infusion of capital from an apparently perfect strategic corporate investor, Flextech plc, that had approached the company virtually ''out of the blue''. 12 months later the Internet bubble had burst, Flextech had been taken over and the company needed more money. Now once again Sean was on the funding trail. Over the last four years, his role had evolved from that of a technologist to a salesman/marketeer to a managing director. Now he would need to become a financier, outlining a valuation and funding route for his new company. Above all, he would need to make a choice of how much money to raise, how much dilution he was prepared to accept and what sort of funding partner would add most value to the forward growth of the business. It all felt like a far cry from the one man show he had originally embarked upon.
Location:
Industry:
Size:
Over 20 employees
Other setting(s):
1995-2000

About

Abstract

After over three years of creating and building an Internet mapping business in his spare bedroom, Sean Phelan realised that Multimap needed to enter a new phase in order to expand. He had been involved in two previous discussions with venture capitalists (VC''s), but his focus on technical development rather than business planning had resulted in these discussions faltering, with the VC''s raising questions about revenue generation that he was not in a position to answer. Up to then, Sean had not been concerned, preferring to maintain his independence however, by the end of 1999, his years of intensive work and development were threatened by the onset of competition in the Internet mapping sector. In order to grow the business within the UK and to expand into Europe, Sean had accepted an infusion of capital from an apparently perfect strategic corporate investor, Flextech plc, that had approached the company virtually ''out of the blue''. 12 months later the Internet bubble had burst, Flextech had been taken over and the company needed more money. Now once again Sean was on the funding trail. Over the last four years, his role had evolved from that of a technologist to a salesman/marketeer to a managing director. Now he would need to become a financier, outlining a valuation and funding route for his new company. Above all, he would need to make a choice of how much money to raise, how much dilution he was prepared to accept and what sort of funding partner would add most value to the forward growth of the business. It all felt like a far cry from the one man show he had originally embarked upon.

Settings

Location:
Industry:
Size:
Over 20 employees
Other setting(s):
1995-2000

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