Road to Value BV
Drie Gebroeders 15
2342 CL Oegstgeest
The Netherlands
undisclosed dates

Idea validation
Deal structure
Turn around


undisclosed company name

Social Media

Situation

Kick-starting an internet 2.0 business requires a lot of media attention, well tested technology and seamless execution. Such a business model consumes a high cash burn up front, and is very vulnerable when momentum is lost and page visits need to grow organically from scratch. Prospects change quickly from high promise to luring bankruptcy, and a new dynamic is created between investors and management.

Task

Christian Rood as founder of Road to Value was engaged by the investor to protect the investment after having closed the first investment four months before.

Action

- Analysis of future potential
- Negotiations on Company Voluntary Agreement and new shareholders agreement with other shareholders and founder (UK insolvency procedure)

Result

The company slashed its cash burn significantly, changed its business model from content rich community to media production with potential upside left by hosting proprietary content on the community site in the future. The company is generating profit.