Tyle of Lync
1. What were the most critical choices faced by James Milmo early in the founding of Lynx? Do you agree with his decisions?
In lieu of the case, following seem to be the most critical choices faced by James Milmo early in the founding of Lynx.
A. Working with Doug Curtis
· Milmo got the idea of advertising on handheld device screensavers while he was still working on another idea next to Doug.
· But he took some time, before he discussed it with Doug.
· He had already worked with Doug on another idea and was sure about Doug’s appetite for entrepreneurship.
· He was never deeply inclined to work with Dough, but it was better than starting things from scratch with someone else.
· After meeting his family and seeing Doug interact with them, Milmo found that he was a good guy and Milmo can trust him with the new and innovative idea.
To my opinion it was a good idea to start the new venture with Doug as Milmo knew him and had already worked with him. They had a better work understanding which is very important for the success of every venture. Further it is always easy to trust someone whom you have known for some time than to start with a totally random person.
B. Pursuing a business degree
· Milmo was not sure about his aspirations as an individual.
· He got admitted in the Harvard Business School and turned down his admission for his real estate idea. He got an admit the second time as well and initially he planned to just have a feel of it for 10 days but later decided to continue it further.
· He was fickle minded about going to the business school. One side, he thought it was counter-entrepreneurial for an entrepreneur to go to a business school and spend a handsome sum on tuitions. On the other hand, when he joined HBS, he was liking it
In my view, it would have been better if he would have focused on one thing at once, which he later did and finally left business school to grow Lynx.
C. Equity Stake
· The most important issue was equity stake.
· Milmo insisted that Doug should work for 2 years before being fully vested whereas Milmo himself would be fully vested immediately.
· Furthermore, Milmo considered Pascal as a critical piece of Lynx and argued that the three founders should be equal partners in Lynx and therefore should each receive a third of its equity, but Doug thought that Pascal should get only an “Engineer Equity” which should be nothing more than 5%.
· They later came on a conclusion that Pascal gets 25% of equity, and Milmo and Curtis each received 37.5% of the equity, with Milmo’s vesting immediately and the others vesting over two years.
· Other than that Pascal will be treated as a full-fledged founder in every other way.
At first glance, Milmo’s decision appears to be reasonable and pertinent. However, I think he should not have insisted the right to immediate vest for himself as well. Even though he got the right to vest, Lynx was his Brain Child and it was not likely for him to leave Lynx before the 2...