Entrepreneurial opportunity is viewed as exogeneous – that is something outside of the entrepreneur and extant, or endogenous – that is something that is an interaction between the entrepreneur’s experience and the outside world. As a result, how one searches for opportunity differs depending on how one conceives opportunities.
Compare and contrast the effectuation model’s view of opportunity with the gazelle model’s view. Which is more endogenous? Use practical examples to illustrate your points. Then, in another paragraph or two, use the theories, cases, Camino readings, and news presented in class to tell me whether you think that exogenous or endogenous forces more clearly reflect how entrepreneurs actually act. Be clear in your logic to convince me.
- Please write a short essay 2-3 pages double space:
Using the attached presentation (PowerUP example.pptx), please analyze the company in terms of the four risks that VC use to evaluate firms. Then use a valuation method (Berkus method, scorecard valuation, risk factor method, online valuation tools, venture capital method…. All files are attached) and apply your risk logic to come up with your recommendation of whether this is a good investment or not. You will be evaluated on completeness and logic of your idea – include a pre and post-money table. (If you choose to not invest, you still must assess the four risks, a valuation method, and calculate the valuation using the request in the proposal to explain why.) - Answer one of the following: 1-2 pages double spaced
a) Is it OK to fail in entrepreneurship? Explain the circumstances when it might be and when not.
b) Compare the strategies of Facebook and CBS in their growing phase. How are they similar? How are they different?
c) Explain why venture capital firms in the US are almost always partnerships and not corporations.
Sample Solution
