Splunk and Venture Capital Investing in Enterprise Technology (Part A)

By John Glynn, Tim Hsia
2013 | Case No. E507A

Case describes the funding landscape for enterprise technology startups and how there has been a renewed interest in these types of companies in 2012 and 2013. The case highlights recent IPOs within this sector and the venture capitalists who have created funds to pursue an enterprise information technology investment thesis. Case focuses on the company Splunk to highlight the intricacies and nuances of building a successful enterprise startup from funding to IPO. The case also highlights issues around fund raising, selecting the right venture capitalists, and whether to accept an acquisition offer.

Learning Objective

Expose students to the differences between venture capital investing in consumer startups versus enterprise information technology. Examine the long maturation period for enterprise technology startups from fundraising to IPO. Examine the upswing in investment interest in the enterprise technology and the underlying reasons for why this sector has been receiving renewed interest and more funding.

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