Hardina Case OverviewHardina Smythe case studyHardina: Harvard business school, medical school. Have co patented.VBC: specialized in seed-stage to late stage investments in medical devices, biotechnology and pharmaceuticals, healthcare services, and healthcare information technology.Have 5 funds, raised $2 billion since established: VBC V: closed in april 2009, target $500 million but raised only $350 million commitments, managed over 75 healthcare companies.Big background: bad, falling volume of VC deals and money investing, but high competition.Problems: VBC needs Hardina to examine potential investments, presentation about the merits of the three proposals. MAKE THE INVESTMENT CHOICE!!INDUSTRY ANALYST: outpaced IT industry. Investors focus in more cost effective investments. Only exit is acquisition.ALWAYSCOVERED SOFTWARE: IT, on the verge of capturing a new market.Scheduling tool delivered over the internet – addressed the temporary human resource cost problem. Have only two solely focused on sales. manage clinical staff and nurse from internal. Seed stage: just begun to build team nationwide.
ESTIMATED REVENUE: $400 for nurse, $800-$1000 for expend across hospital. Planning to expand to other industry.2010 trail: good outcome.PROS: had deep pipeline to top-tier customers; obviously have market; first-in-market advantage; customer loyalty – hard to swift once they use; clear exit strategy; low valuation.CONS: potentially be replicated by others – except they can get full sales force in place quickly; CEO may not have the ability to run the company till it mature, (may involve opportunity cost, and a huge amount investment which is still uncertain); if the hospitals accept the software, there would be a huge change internal, and this change would need a lots of time and the support from internal staffs, which may rise the costs. But the fund the company raise is only $6 million with a modest burn rate, which may not enough; may need a long term to earn a positive outcome of this investment.
Market : high performance in many of the industries discussed here, including health/medical/finance/lgbt-core, healthcare/health services, software development / software sales; high-quality staff for all roles; strong and committed internal culture (a la Amazon; good team building and culture); highly successful internal investors (but does it offer a significant advantage?) with a good level of management (especially through “revenue sharing” strategy); strong team and management culture; strong team leadership with unique ability to change company, staff, and results – the company is no one to be despised. Also very good experience in many, many other industries.
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