Session 5: October 8, 2007

From Idea to Opportunity II

Guest: Matt Cohler (VP Strategy and Operations, Facebook)

Quote of the Day

"God is in the details." ~ Mies van der Rohe

Summary

This is the second and last of two sessions where we discuss the differences between an idea and an opportunity. In this session, we look at the particular challenges of new ventures in the life sciences.

Required Readings (Policy on Required Readings.)

• Case:
  • Facebook [in the course reader]
• Recent Press Articles on Facebook
• #1, #2, #3, #4, #5
• Watch the following short video clips:
  • Paul Yock (Stanford) - FDA and Medicare
• Gordon Ringold (Surromed) - Types of Companies in Biotech
• Gajus Worthington (Fluidigm) - Breaking Convention: Technology First, Market Opportunity Second

Study Questions (Policy on Study Questions.)

• What makes Facebook an attractive opportunity (and not just a good idea)?

• How will Facebook make money?

• Identify the major risks in each of these categories: technology, market, team, and financial. Rank order them.

• What are the advantages and disadvantages of each of the business models and funding options Facebook could pursue?

• How are "social networking" start-ups different than those in "life sciences" or "clean energy" industries?

Team Case Analysis (Policy on Case Analyses.)

Analysis (Powerpoint Deck with 6 slides maximum.  This is our Policy on Case Analyses.  Follow it for all cases when your team is assigned responsibility to submit your analysis.)

Slide 1: Team photos and names of team members plus the team name (Team XXX DART of Facebook case, for E 145, October 8, 2007)

Slide 2: Your decision(s): answer the decisions facing Facebook's leaders in the case.

Slide 3-5: Analysis: Any quantitative and qualitative analysis to support your decision.  Use the readings for the day.  Find two or three tools that seem to apply. Apply them.

Slide 6: Reality Test: Identify 3-5 of the biggest risks facing Facebook.  How will you manage those risks? What is a contingency plan if your game plan fails?

Excel workbook: Two pages not larger than 8.5 inches by 11 inches with font we can read.  Do tables, graphs of any of your quantitative analysis to support your decision.  Use the tools from your readings and the workshop that we will conduct, as well as any tools from your other courses that apply.  Make sure your assumptions are clearly documented.  Cite any sources of tools you use in a footnote.

DART = Decisions + Analysis + Reality Test

This framework will be the way that you do case openings and te teaching team grades them.

---