Introduction
About This Site
About The Textbook
About The Authors
McGraw-Hill Book Website
 
Book Contents
Table of Contents
I
Opportunity and Strategy
II
Creating New Ventures
III
Functional Development
IV
Growth and Financing
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
 
Sample Syllabus
Course Overview
Calendar of Sessions
I
Entrepreneurial Perspective
II
Idea or Opportunity
III
Gathering Resources
IV
Managing Ventures
V
Entrepreneurship and You
 
Additional Resources
Courses Using This Textbook
 


Synopsis

This case examines the challenges that Yahoo! founders Jerry Yang and David Filo faced in analysing and choosing a first-round financing option. With the possibility of either selling Yahoo! outright, partnering with a corporate sponsor or starting an independent business, Jerry and Dave have to consider not only the established culture and needs of their novel fledging webportal, but their own personal entrepreneurial goals and vision for Yahoo!. The pressure is also on them to make a critical decision, as Mike Moritz of Sequoia Capital offers them deal with a 24 hour deadline.

This case also includes excerpts from the original Yahoo! business plan.

When should this case be discussed?

Yahoo! is a good first or second case to tackle in an introductory class in technology ventures. A student should be able to make good headway on the case after reading the first four chapters. The case can also be revisited after a more in depth examination of business plans and funding sources.

Teaching notes are available in Instructors Section at www.mhhe.com/dorfbyers1e
There are two other accompanying cases about Yahoo! that can be found at http://edcorner.stanford.edu.

Relevant chapters and questions

Ch 1: Capitalism and Technology Entrepreneur (1.1,1.2)
Ch 2: Opportunity and the Business Summary
Ch 3: Building a Competitive Advantage
Ch 4: Creating a Strategy
Ch 8: Creating New Ventures and the Business Plan
Ch 18: Sources of Capital
1. What makes Yahoo! a true business opportunity and not just an idea? How do Dave and Jerry's personal goals and vision for Yahoo! align with each of their financing options? What is the vision and the value of Yahoo!? What is its business model and strategy?

2. Analyze the Yahoo! business plan using Sahlman's model as presented in Figure 8.7 (p. 191). Identify the major risks in each of these categories: deal, resources, people, opportunity.

3. What are the advantages and disadvantages of each of the funding options Yahoo! could pursue?




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