Research Paper on:
Case Study: ONSET Ventures

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a start-up software company, TallyUp. It also answers questions about the way in which ONSET should approach funding TallyUp at a crucial point in their development. ONSET Ventures The company  has become successful by following a carefully-thought out process: the principals of ONSET studied the venture capital business carefully before they created the organization. They found that it was actually  rare for a business to obtain venture capital funding, and that those that did rarely got to the so-called "second round" of financing that would increase their value above what  they were worth at the time of the first financing. This realization led to several conclusions that have served ONSET very well. First, they realized that if the company had  a "full-time mentor who was not part of the companys management team, and who had actually run both a start-up and a larger business, the success rate increased from less  than 25% to over 80%" (Roberts and Tempest, 2004). If the venture capital company had a personal commitment to the new company, it was more likely to work hard to  keep it from failing (Roberts and Tempest, 2004). The second principle they discovered was that if a business refused to change their initial business plan, they were likely to fail  (Roberts and Tempest, 2004). The third is to wait to hire the CEO until the business model is fully defined (Roberts and Tempest, 2004). The fourth principle is to "spend  money only to add value as perceived by those individuals providing the next round of investment capital" (Roberts and Tempest, 2004). Fifth, people must want the new business, not simply  need it; that is, the new business fills a niche so specific that it "makes the pain disappear" (Roberts and Tempest, 2004). Here the example is Lotus 1-2-3, which did