What business model would be appropriate for the RSS Works
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What business model would be appropriate for the RSS Works?
The Business model for RSS Works would be advertising supported content by inserting adds on the feeds posted by RSS and while users are surfing the information they add window will automatically open up and thus revenue can be maximised. And they should combine with Freemium and Enterprise model with this combination the content can be developed more.
Rather than going for the option of investing in physical office the office the team should consider either the Cloud route or the crowd sourcing route so that 1.0 Million USD can used for developers who will be instrumental in developing the content.
Instead of taking the experienced developers of 7 they should take one on board and they should go for the students from University of Waterloo and develop the content.
What could be funding options for RSSWorks? Capital needed and structure.
I would strongly recommend they should take the Cloud route and invest their cloud route the investments are low and bY taking students on board and they should report to the 2 professional developers,instead of 7 they would go for 2 and once the users increase and company grows they can recruit more. Rather than going to VC go to Angel Investors they should consider the Cloud option to run their business and then for further expansion they should go the VC’s if required.
As per the case it is clearly mentioned that the both Canadian VC’s and US VC’s are interested and there is a potential of investments up maximum of 10 Million, they should go for both VC’s if they opt for Canadian there will be local expertise and cushion that they operate locally and few of them are already on board from the VC team and whatever revenues made from Canada will go to Canada as and whatever the revenue from US it will go to US VC’s. If the VC’s.On the common share front if the VC’s are adamant they should discuss and come to an agreement that once they pay back the fund they borrowed they will get their stakes back.
Your estimation of the value of RSSWorks?
As per the Pew study reports 25% in the US market alone would be
How would RSSWorks spend VC/Angels’ money after investment is made?
RSS should spend the investment on the below mentioned departments.
Sales and Marketing Team to expand their markets and get new Customers, Advertising expenses apart from the Viral marketing initiative. Salaries and G&A expenses for Developers,Office,Legal
Instead of going for the Servers they should go to the cloud route its less expensive and safe environment as well..