Study the two “You Be the VC” features at the end of Chapter 9 and the two “You Be the VC” features.

In your judgment, which of the four firms is the better candidate for venture capital funding? Which is the poorest candidate?

Justify your answers.

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YOU BE THE VC 9.1 Company: YouTern Web: www.youtern.com Twitter: YouTern Facebook: YouTern Business Idea: Create an online community that links interns (primarily college students) with entrepreneurial start-ups and change-oriented nonprofit organizations. Pitch: Internships can help students prepare for professional careers through mentorship and on-the-job training. In many cases, internships lead to permanent employment in that they give an employer a good look at an individual (in terms of skills and work ethic, for example) that they may want to hire upon graduation. Internship opportunities are becoming more coveted than ever. According to the National Association of Colleges and Employers (NACE), the number of college students seeking internships in their field of study has increased from 10 percent to 70 percent in recent years. The tight job market and the leg up that having one or more internships on a rsum can provide a job seeker are the primary reasons for the increased interest in internships. Until now, there hasn't been a good way for entrepreneurial- minded college students to connect with start-ups that are interested in providing internship opportunities. You Tern was created to fill this need. The company allows stud interested in internships with start-ups to create profiles, which describe their aspirations, degree/major, location, and hours of availability. Start-ups create similar profiles describing their business, location, the type of intern they're looking for, and hours available. YouTern's proprietary software looks for matches, and then introduces the matched parties. The ability to place students as interns in both for-profit and not-for-profit organizations increases the number of people YouTern has a chance to serve or help. As part of its commitment to helping college students land good jobs, YouTern is very active in providing inter- viewing tips and general career guidance. The company channels most of its advice through social media, such as its Facebook page and via Twitter. In fact, as of February 2011, the company had posted 7,072 tweets on its Twitter account and had 1,850 followers. YouTern also maintains a blog titled The Savvy Intern. The blog is available at www.youtern.com/thesavvyintern. You Tern launched in mid-2010 and focused initially on California and Illinois. Its initial plans were to be nation- wide by mid-2011. Q&A: Based on the material covered in this chapter, what questions would you ask the firm's founders before making your funding decision? What answers would satisfy you? Decision: If you had to make your decision on just the information provided in the pitch and on the company's Web site, would you fund this company? Why or why not?