Internet Securities, Inc.: Path to Sustainability

Posted: 1 Mar 2012

See all articles by Lynda M. Applegate

Lynda M. Applegate

Harvard University - Entrepreneurial Management Unit

William Kerr

Harvard University - Entrepreneurial Management Unit

Ryan Johnson

Harvard Business School

Date Written: June 28, 2011

Abstract

Founded in 1994 when the Internet was still a "toy for techies," the case is set in 1998 when Internet IPOs were red-hot. Internet Securities provides hard-to-find financial, business, economic, and political information on emerging markets. Information from over 600 information suppliers in more than 25 emerging markets (e.g., China, Russia, Poland, Venezuela, Argentina, Chile, Turkey) is provided to over 650 institutional clients, including J.P. Morgan, Deutsche Morgan Grenfell, KPMG, and ING Barings. After ruling out seeking another round of VC financing, the cash-strapped founder of this Internet information service provider must decide whether to IPO or accept an offer to be acquired by Euromoney, a global publishing and information content provider that is eager to launch an Internet information service. The case contains a term sheet that can be reviewed to support analysis and decision making.

Learning Objective: The case enables students to: Understand the challenges of building a sustainable business from idea to opportunity to launch and growth; Analyze the company's business model; Compare Internet IPO data and comparable company acquisition transactions from 1994 through 1998; Determine valuation and deal terms; and Identify personal motivations of a founder at key transition periods in the process of launching and growing a new venture.

Suggested Citation

Applegate, Lynda M. and Kerr, William R. and Johnson, Ryan, Internet Securities, Inc.: Path to Sustainability (June 28, 2011). Harvard Business School Entrepreneurial Management Case No. 811-098. Available at SSRN: https://ssrn.com/abstract=2013297

Lynda M. Applegate (Contact Author)

Harvard University - Entrepreneurial Management Unit ( email )

Cambridge, MA 02163
United States

William R. Kerr

Harvard University - Entrepreneurial Management Unit ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

Ryan Johnson

Harvard Business School ( email )

Soldiers Field Road
Morgan 270C
Boston, MA 02163
United States

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