Exercise | May 2002 (Revised May 2003)

Endeca Negotiation, The: Hardy Smith

by G. Felda Hardymon, Josh Lerner and Ann Leamon

Abstract

Students play the role of Hardy Smith, one of the founding investors of a venture-backed enterprise software company. In the challenging financing climate of the fall of 2001, he is trying to decide what terms to offer the company as an insider-funded C-round. Presents the background of the company and the lengthy struggle that Hardy and the CEO endured just to get a term sheet.

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: Hardy Smith." Harvard Business School Exercise 802-213, May 2002. (Revised May 2003.)