Dosa King
Dosa King
The profile of Investors: Dosa King raised funds for its new venture through dispersed equity investors-through IPO, loan arrangements from TIDCI(Technology development investment corporation of India) and TIDCO(Tamil Nadu Industrial development corporation) But due to non acceptance by the target clientele and potential franchises, the business was a commercial failure. A better financing option would have been raising funds with the help of a VC firm as it would have lead to VC type governance on the Dosa King. As by funding with help of a VC firm would have lead to the involvement of the VC firm in both financing and participating in the control decisions of Dosa king thus leading to better governance and strategy for Dosa King. Use of milestone linked payments would have been better as the company would have made a repayment of loan after reaching a certain predetermined goal vis--vis the TIDCO.