The company had exhausted its initial capital in the process
of building its web engine, acquiring a few key managers,
and enlisting its first partners and customers. A second round
of financing was on hold pending verification of the business
plan and the appointment of highly capable executive and financial
The solution was to review and revamp the business plan to
more accurately reflect both the revenue opportunity and the
likely cost structure needed for the realization of that revenue;
to support the newly appointed Chief Executive Officer to
enact appropriate levels of spending and division of duties
and controls; and to prepare the VC Partner for credible financial
presentation to new and existing investors.
Mornington consulting partners conducted a rapid and rigorous
reworking of the business plan, revising revenue projection
and incorporating an appropriate and workable business model
into the cost structure and estimates. We communicated the
revised Business Plan to the CEO, the VC Partner and Board
of Directors, and with their approval prepared the plan for
presentation by the VC group to new and existing investors.
The outcome was positive. The client secured
an additional $2.7 million in funding in excess of the amount
projected to be required by the Business Plan and resumed
its process of moving to full operational capability.