IMVU

Will Harvey hopped on his bike and began to pedal up Old La Honda Road, the famous steep and windy road in Portola Valley, California. As the ascent was always stressful, Harvey, co-founder and CEO of IMVU, a company that 3D avatar-based instant messaging began developing the thinking by the three term sheets that were on his desk in the office. He and co-founder Eric Ries had to make to the current round of funding, a decision within one week of the partnership with IMVU. Har … Read more »

Will Harvey hopped on his bike and began to pedal up Old La Honda Road, the famous steep and windy road in Portola Valley, California. As the ascent was always stressful, Harvey, co-founder and CEO of IMVU, a company that 3D avatar-based instant messaging began developing the thinking by the three term sheets that were on his desk in the office. He and co-founder Eric Ries had to make to the current round of funding, a decision within one week of the partnership with IMVU. Harvey and Ries had an unconventional approach to the assumed growth of their commissioning. While the typical early-stage companies delayed on the market until its product had been perfected, sold his IMVU chat service to customers immediately, even if it was incomplete, bug-ridden, and wore a beta label. The development team then IMVU permanent changes to the application on consumer feedback through e-mails, surveys, and online chat forums made conquered. Within eight months after the start of the beta product, Harvey and Ries believed that they clearly understood many of the features of their desired “earlyvangelists.” IMVU strategy generates fast enough revenue growth (small-scale) to obtain quotes from several Sand Hill Road venture capital firms, as well as a large strategic acquirer. However, each potential partner had a different perspective on how the company to ramp up for the future. Harvey and Ries weighed whether to continue adhering to the methodology that enabled them to move in search of a more aggressive expansion to IMVU from the ground or the gears. This decision was the first step in choosing the source of capital is best aligned with the company’s goals and strategy.
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from
Andrew Rachleff,
Bethany Coates
Source: Stanford Graduate School of Business
14 pages.
Release Date: 26 March 2007. Prod #: E254-PDF-ENG
IMVU HBR case solution