Read Case 1.1, which focuses on RunKeeper. What similarities, if any, do you see between RunKeeper’s start-up story and the start-up stories of Rovio Mobile (the company behind Angry Birds) and Zeo, the two firms featured in the “Savvy Entrepreneurial Firm” boxed feature?

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CASE 1.1 Runkeeper: Combining a Passion for Running and Technology to Build an Incredibly Successful Business Web: www.runkeeper.com Twitter: runkeeper Facebook: Runkeeper Bruce R. Barringer, Oklahoma State University R. Duane Ireland, Texas A&M University Introduction In early 2008, Jason Jacobs was actively looking for a business idea to pursue. He knew he wanted to start his own business-he just didn't know what that business would be. Anticipating the need for start-up funds, he lived like a bootstrap entrepreneur, even though he had a good job. He was trying to save at least two years of living expenses to support himself when he settled on a business to start. Trying to settle on a business idea was frustrating for Jacobs. He looked at clean tech, enterprise software, and several other alternatives, but nothing resonated. He got so frustrated that he started training for a marathon as a way to clear his head. While training for the marathon he tried several of the devices that were available at the time to time and track practice runs, including GPS-enabled watches and the Nike+iPod device. Although the devices worked, he found preparing for the marathon to be a fragmented experience. Different devices offered different features, but none tied the whole experience of training and running together. Jacobs had his business idea. He would create a company that would combine his passions for running and technology, and build a Web- based platform that would allow runners to integrate the hardware devices they were running with a Web-based platform that would provide them analytics, coaching, running-related tips, and social support. In this sense, Jacobs's business idea created a "turnkey" operation for runners interested in tracking their progress. Getting Started After a brief period of indecision, Jacobs quit his job to focus on his business idea full-time. He remembers thinking, "Now you've got your idea and you're going to work on it nights and weekends in a coffee shop-are you kidding me?" He started asking around about people who might help him get started. He was introduced to some traditional Web site developers, who wanted $50,000 to $75,000 to build the site and functionality he envisioned. Although Jacobs had a tidy sum of money tucked away, these suggested fees were just too high. He met three guys who were willing to moonlight to help him get his project off the ground at a much lower cost. He didn't bite, thinking that if he was going to commit full-time he didn't want to hitch his wagon to people who were only in it part-time. He then became acquainted with a two-man development shop that listened to his idea and asked him if he'd thought about building an iPhone app. That thought had never occurred to Jacobs, but sounded like a great idea. The iPhone app store was set to debut on July 12, 2008, in just a few months, and the two developers had just received a development license from Apple. They hadn't built an app yet but were eager to try, and offered Jacobs a deal if he could pay for their first development effort. Jacobs knew he could go back to the three moonlighters to get the Web site side of the business built. So in Jacobs's mind, the business that was taking shape was to build an iPhone app, with the help of the