Preface of Textbook
About the Textbook
About the Authors
Book Website at McGraw-Hill
DVD Contents
Stanford 1e Book Website
McGraw-Hill 1e Book Website
Book Contents
Table of Contents
Venture Opportunity, Concept and Strategy
Venture Formation and Planning
Functional Planning of the Venture
Financing and Building the Venture
  Business Plans (App. A)
  Case Studies (App. B)
Online Sources (App. C)
Sample Syllabus
Course Overview
Calendar of Sessions
Entrepreneurial Perspective
Idea or Opportunity
Gathering Resources
Managing Ventures
Entrepreneurship and You
Additional Resources
Schools Using This Textbook
Authors Blog


IMOS is a seminconductor startup, with disruptive transistor technology that allows for the increase in density of transistors on a chip without exponentially increasing the heat generated. This is a problem that the semiconductor industry has struggled with for the last three decades! By reducing static power dissipation by three orders of magnitude, IMOS solves the heat problem and increases chip performance by up to 30%. IMOS is well posed to make an impact on the semiconductor industry, particularly in power and performance sensitive products. IMOS plans to make headway as an intellectual property startup, licensing its technology to foundries, semiconductor manufacturers and fabless semiconductor companies.

Discussion questions

1. Analyze the team, the opportunity, the context and deal for IMOS using Sahlman's model in Figure 7.3. In your opinion, what is the greatest risk for IMOS?

2. IMOS anticipates the need for three major rounds of funding. What types of investors should they approach for this funding? Venture capital? Corporate sponsorship? Put yourself in the shoes of a potential investor. If IMOS came to you with their business plan, what are the main questions you will ask?

3. The upfront licensing cost for IMOS technology is a hefty $1.5M. As head of sales at IMOS, how will you go about winning your first customer? How will you go about justifying the cost of your license agreement? As a young and small startup, how can you convince your earliest customers that your company will last as long as the 5-year term agreement you are selling to them?

4. Your major competitors (Intel, IBM and AMD) may very well be possible customers or potential partners. Like IMOS, they have all been developing technology to reduce static leakage problem, but perhaps with less success. What will be your strategy in working / competing against them?

5. IMOS has chosen to be an intellectual property startup to leverage its core competencies and to reduce fixed and variable costs. If IMOS is unable to establish licensing contracts for its IP, it plans to become a product based company. In this case, flesh out a product line and a brief marketing strategy for your products.

Copyright 2004-2007 Stanford University. All Rights Reserved.