Loans A Silicon Valley Start-up
_A Si Valley_
Name: Choi Ying Kai
Date accomplished: 14-10-2007
About seeing the possible lack of web services for solution booking and in addition unexplored specialized niche markets requesting for seat reservation of venues with less than 200 seats, TixToGo designed a self-service site to many of these and agencies to assist in collection of subscription fees, admission purchases, contributions or sign-ups for activities over the Internet, thinking that the characteristics of the Internet would allow good growth potential and lucrative returns.
The strengths of the company's business model are on the market potential and competitive advantages. Answering event corporation, the potential concentrate on markets were enormously large as described in Demonstrate 6, addressing to an around $120 a lot of revenue. As well, there were not really existing opponents competing in the market. This would let them have a " first emocionar advantage".
Even so, the company is weak at its management level. Without a superior management staff at the beginning, they failed to attain sufficient venture capitalist or perhaps bridge fund to sustain their business. Moreover, they are really unable to increase the site system and manage the legal and supervision work. These types of pitfalls would limit the expansion of the company's solutions and seriously affect the scalability, profitability and sustainability.
Because of an over-$200k deficit in year 98 and 99, TixTiGo, at the time of decision, did not sustain its business together with the current funds or consider further development. There are several reasons: (1) both the co-founders did not finance adequate funds coming from venture capitalists or angel investors; (2) the company had not yet used the right quantity and profiles of management for business expansion or financing; (3) at introduction stage, the entire number of discounts is low and the major margin could not cover the...