The document summarizes two cases - Dogster and Zazzle. For Dogster, it provides background on the online social network for dog owners and discusses its history and growth. It then presents a scenario where the founder needed capital to grow the business. For Zazzle, it describes the online platform for customized products and its history. It then discusses a scenario where Zazzle accepted a $16 million investment from venture capital firms to accelerate its growth. The document concludes by presenting questions and solutions related to the financing and growth of the two companies.

1. DOGSTER & ZAZZLE CASES
SOLVED

2. PRESENTATION OBJECTIVES
• DOGSTER CASE SOLVED
• ZAZZLE CASE SOLVED

3. INTRODUCTION TO DOGSTER
• IT IS AN ONLINE SOCIAL NETWORK JUST LIKE FACEBOOK
• BUT IT’S A PLATFORM FOR DOG OWNERS ONLY
• IT’S A COMPLETE SOLUTION FOR DOG OWNERS
• DOG OWNERS CAN DISCUSS THEIR ISSUE RELATED TO SERVING DOGS
• DOGSTER PROVIDE SEVERAL SERVICES TO ITS USERS SUCH AS : MEDICAL
SERVICES, GROUP DISCUSSION, MAGAZINES AND MUCH MORE

4. HISTORY OF DOGSTER
• IT WAS FOUND BY RHEINGOLD IN 2004.
• HE WAS A WEB DESIGNER AND WAS NOT HAPPY WITH HIS EARNING
• HE WAS THINKING TO START AN ONLINE BUSINESS
• HIS WIFE LOVES DOGS THAT WAS INITIATIVE OF DOGSTER WEBSITE.
• IN 2006 THERE WERE 250000 REGISTERED USERS ON DOGSTER WEBSITE.

5. DOGSTER CASE SCENARIO
• RHEINGOLD WAS A WEB DESIGNER. HE STARTED DOGSTER JUST TO EARN MORE
THAN HIS CURRENT EARNINGS.
• HOWEVER TO GROW BUSINESS, THERE MUST BE CAPITAL TO INVEST
• HE WAS AFRAID OF BORROWING CAPITAL BUT THE BUSINESS IDEA WAS VERY
UNIQUE AND HAD POTENTIAL OF GROWTH. ALL IT NEEDED WAS CAPITAL
• AFTER COUPLE YEARS HE STARTED BORROWING BUT THAT WAS LITTLE BIT LATE

6. SOLUTION
• Q1. DO YOU THINK RHEINGOLD HAS GROWN DOGSTER AND CASTER TOO SLOWLY? WHAT
WERE THE POTENTIAL UPSIDES AND POTENTIAL DOWNSIDE OF GROWING THE COMPANY MORE
RAPIDLY IN THE EARLY YEARS?
• IT WAS NOT THAT MUCH SLOW BUT AS COMPARE TO OTHER SOCIAL NETWORK
LIKE FACEBOOK WE CAN SAY THAT I WAS LITTLE BIT SLOW.
• UPSIDE OPTIONAL WAS HIS BUSINESS IDEA WHICH HAD POTENTIAL
• DOWNSIDE WAS ALSO BUSINESS IDEA BECAUSE OF RIVALS

7. SOLUTION
• Q2. WHEN DOGSTER WAS FIRST LAUNCHED, WHAT TYPE OF FINANCING OR FUNDING WOULD
IT HAVE BEEN QUALIFIED TO RECEIVE?
• INVESTORS NEED TRUST TO INVEST IN BUSINESS
• INITIALLY, TO BUILD TRUST, BUSINESS MUST PERUSE INVESTORS
• INITIALLY DOGSTER COULD RECEIVE FUNDS FROM EXTREME DOG LOWERS.

8. SOLUTION
• Q3. SPEND SOME TIME LOOKING AT DOGSTER’S WEBSITE. WHY DO YOU THINK THE COMPANY HAS BEEN
SUCCESSFUL? FROM THE CASE AND FROM ANY ADDITIONAL MATERIAL YOU CAN FIND, MAKE OF LIST OF 10
THINGS THAT RHEINGOLD HAS DONE “RIGHT” IN BRING DOGSTER TO POINT WHERE IT IS TODAY.
1. IT IS AN ONLINE PLATFORM FOR DOG OWNERS
2. IT PROVIDE TRAINING TO DOG OWNERS TO SERVE THEIR DOGS
3. IT ALSO PROVIDE SOLUTION TO ISSUES RELATED TO DOG’S LIFE.
4. DOGSTER PROVIDE FORUM SERVICES WHERE PEOPLE CAN DISCUSS IN GROUPS.
5. DOGSTER WEBSITE IS VERY EASY TO USE AND IT’S NOT OVERWHELMING.
6. DOGSTER OFFER COMMUNITY SERVICES WHERE DOG OWNERS CAN REGISTERED EASILY.
7. PEOPLE CAN CREATE A CUSTOMIZE PAGES FOR THEIR DOGS.
8. PEOPLE CAN UPLOAD AND SEARCH FOR DOGS.
9. PEOPLE CAN EASILY ADOPT DOGS USING DOGSTER
10. DOGSTER PROVIDES COMPREHENSIVE MAGAZINES TO DOG OWNERS.

9. SOLUTION
• Q4. WHAT LESSONS CAN OTHER START-UPS LEARN FROM DOGSTER’S EXPERIENCES?
• THE BEST LESSON A STARTER CAN FIND IN THIS CASE IS TO BORROW MONEY A
BUSINESS HAS POTENTIAL OF GROWTH

10. INTRODUCTION TO ZAZZLE
• ZAZZLE IS ONLINE PLATFORM FOR A CUSTOMIZE PRODUCT LOVERS
• ZAZZLE CAN CUSTOMIZE PRODUCT SUCH SHOES, T-SHITS- MUGS
• USER CAN UPLOAD THEIR DESIGNS AND WILL BE PRINTED ON THEIR LOVED
PRODUCTS
• ZAZZLE ALSO PROVIDE CUSTOMER WITH LIBRARY WHERE CUSTOMER CAN CHOSE
FROM BEAUTIFUL DESIGNS.

11. HISTORY OF ZAZZLE
• IT WAS FOUND BY TWO BROTHERS BOBBY AND JEFF BEAVER IN 1999
• AT THAT TIME THERE WAS NO DOMINANT INTERNET COMPANY SERVICING THE
INDUSTRY .
• THE REASON FOR THIS IS THAT THE INDUSTRY WAS PLAGUED BY ANTIQUATED
TECHNOLOGY
• IN 2003, THE BUSINESS WAS LAUNCHED, AND THE COMPANY BEGAN TO RECEIVE
MANY ORDERS
• IT HARDLY SUFFERED LOSSES AND ALMOST MADE A PROFIT FROM THE VERY
BEGINNING

12. CASE SCENARIO
• AFTER A YEAR, THE COMPANY WAS CONTRACTED BY A VENTURE CAPITAL FIRM
• THIS FIRM OFFERED TO INVEST $16 MILLION.
• ADVANTAGES:
• GIVE THEM CREDIBILITY
• THE LEAD VENTURE CAPITALIST WERE EARLY INVESTORS IN GOOGLE.
• THEY COULD GROW MUCH QUICKER WITH INVESTMENT.

13. CASE SCENARIO CONTINUE..
• DISADVANTAGES:
• WOULD BE FORCED INTO A FAST GROWTH MODE AND WOULD BE UNDER PRESSURE
• GIVE UP A PORTION OF THE COMPANY THAT THEY HAVE WORKED HARD FOR
• RESULTS
• IT ACCEPTED HUGE INVESTMENT.

14. SOLUTION
• Q1. SO WHAT DO YOU THINK? DO YOU THINK KLEINER PERKINS AND SHERPLO VENTURES
MADE A WISED DECISION INVESTING $16 MILLION IN ZAZZLE? THREE YEARS FROM NOW. DO
YOU THIN ZAZZLE WILL HAVE DISAPPOINTED OR DAZZLED ITS INVESTORS? WHY?
• WISED DECISION, THE VENTURES PROBABLY THOUGHT THAT SALES WILL
QUICKLY GROW. THEY MAY ALSO FEEL THAT ZAZZLE IS A START POINT FOR THE
SALE FOR CUSTOMIZED ON DEMAND PRODUCT AND THAT T-SHITS STAMPS AND
POSTERS ARE ONLY THE START.

15. SOLUTION
• Q2. IN THE CHAPTER AT THE TIME ZAZZLE RAISED VENTURE CAPITAL FUNDING TO WHAT
EXTEND DID IT RESEMBLE THE IDEAL CANDIDATE FOR VENTURE CAPITAL FUDGING AS
STIPULATED BY THE MATERIAL IN THE TABLE.
• ZAZZLE HAS HIGH LEVERAGE A HEALTHY BALANCE SHEET STRONG CASH FLOW
AND GOOD MANAGEMENT. THE BUSINESS IDEA IS UNIQUE AT THAT TIME WITH
HIGH GROWTH AND A NICHE MARKET. THEREFORE THEY ARE QUALIFIED FOR
VENTURE CAPITAL FUNDING. WE WOULD SAY THAT DEBT FINANCING WOULD BE
IDEAL. ZAZZLE HAD AN EFFECTIVE MANAGEMENT ALONG WITH HEALTHY
PROFITABILITY.

16. SOLUTION
• Q3. EVALUATE JASON BALLS THE BLOGGER CRITICISM OF KLENEIR PERKINS INVESTMENT IN
ZAZZLE. DO YOU THINK THAT BALL MAKES SOME GOOD POINTS? WHAT DO YOU THINK HIS
ARGUMENTS ARE OFF BASE? EXPLAIN YOUR ANSWER.
• THE BLOGGER HAS MADE A GOOD POINT BECAUSE THEY INVEST HUGE AMOUNT
OF MONEY IN NEW, NOT SO DEVELOPED COMPANY. THE RISK WAS EVEN HIGHER
BECAUSE OF THE FACT THAT THEY INVEST IN INTERNET BASE COMPANY WHICH
IS UNPREDICTABLE.

17. SOLUTION
• Q4. WHAT DO YOU THINK IS ZAZZLE EXIT STRATEGY? HOW WILL KLENEIR PERKINS AND
SHERPALO VENTURES RECOUP THEIR INVESTMENT?
• THE TWO POSSIBLE STRATEGIES ARE TO BE ACQUIRED AND GO TO PUBLIC. IF
EITHER OF THESE OPTIONS BECOMES A REALITY KLENEIR PERKINS AND
SHERPALO VENTURE WILL RECOUP THEIR INVESTMENTS BY LIQUIDATING THEIR
ZAZZLE STOCKS.

18. THANK YOU 