Coupa Case Study

Instructions
Please read the case, “Coupa” and answer the questions below. You have until midnight on
Monday 21st June to complete the assignment. It is open book and not timed, but as discussed
in class I would expect that you would take 4-5 hours to complete it. Please note:
• As I mentioned in class, please make specific conclusions, based on supporting data
from the case and where necessary, making your assumptions clear.
• Some of the questions are deliberately broad, but I expect that a good answer to these
questions will require several analyses that utilise (and show that you understand) the
frameworks used in this course.
• If you use Excel, please paste the calculations into your word document, as it will be
tricky to follow Excel calculations in separate documents.
Questions
1. Please evaluate Coupa as an investment opportunity at the time of the case. As a VC
investing at the time of the case, what is the minimum share of Coupa would you be
willing to take for a $10 m investment? Use at least 2 approaches to validate your
answer and please explain your calculations.
2. Rob Bernshteyn is reflecting on three broad plans: (a) continue organic growth as
shown in Exhibit 3 (b) grow more aggressively, including by acquiring smaller
players (c) sell out to a bigger player.
i. What are the pros and cons of each approach?
ii. Suppose that Coupa can achieve $ 6 million more revenue by 2014 than that
projected in Exhibit 3 but will need to burn $8 million more cash over the next
two years in order to achieve this increase in sales. Does it make sense to
raise more money to achieve this goal? Why or why not?
iii. If you were Rob, what is the minimum acquisition price you would need to
receive to sell out to a bigger player? Please explain your answer.