Exercise | May 2002 (Revised May 2003)

Endeca Negotiation, The: Steve Papa

by G. Felda Hardymon, Josh Lerner and Ann Leamon

Abstract

Students play the role of Steve Papa, the CEO and founder of a venture-backed enterprise software company. In the challenging financing climate of the fall of 2001, he knows that two different groups are about to submit term sheets for his company's C-round. He is trying to decide what he should aim for in the ensuing negotiation. Presents the background of the company and the lengthy battle Steve fought just to get a term sheet. He has two months of cash left and a number of issues to consider, including a founding investor's request to change the terms of a previous round.

Keywords: Negotiation Process; Negotiation Offer; Management Teams; Venture Capital; Valuation; Software; Information Technology Industry; Web Services Industry;

Citation:

Hardymon, G. Felda, Josh Lerner, and Ann Leamon. "Endeca Negotiation, The: Steve Papa." Harvard Business School Exercise 802-212, May 2002. (Revised May 2003.)