I Have A Case Rent The Runway

Rent the Runway

In November 2009, two months after a successful launch, the cofounders of Rent the Runway (RTR), a website that rented designer dresses, are debating whether to grow their startup at a measured pace and focus on improving operational effectiveness, or raise a new round of venture capital sooner than originally planned. Raising more venture capital would allow RTR to aggressively expand its inventory and customer acquisition efforts, in order to serve a broader range of customer segments with a wider selection of products, including accessories and even maternity wear. Please consider the following:

1. Create a timeline of actions undertaken by Rent the Runaway’s cofounders. Do you agree with the decision to pursue action? Which actions were important in validating business model hypotheses and refining the concept? Can you suggest different actions that the cofounders should have taken?
2. As the case ends in January 2010, the cofounders are considering whether to: (1) stick with their original plan to pursue operational improvements in 2010 before raising more capital in early 2011; or (2) accelerate fundraising in order to expand inventory and product range, enabling RTR to serve a broader set of customer segments and usage occasions. What would you do about this decision?

• Do not make a cover page and do add page numbers down at the bottom, centered
• Use the 5 pages allocated or your grade on this assignment will be negatively impacted