Two engineers founded a startup for the design and development of Internet of wearable technology products and Things. They received initial seed capital from family in lieu of equity shares.
Nonetheless, in spite of potential huge demand, the firm did not have funds for mass production because it used the seed capital on the design and development.
The provider would not make unless the start up paid up front.
The technology startup needed to examine all the available choices for funding mass production of its merchandise and choose the one that was most acceptable.
Learning Objective:
To illustrate the increase of Internet of the wearable technology sector and Things from a historical viewpoint.
To demonstrate a technology start-up explores funding alternatives for maintaining on-going procedures and for its growth.
To identify the different options available to a start up to analyze the pros and cons of each choice and to generate capital for increase.
To compare the crowdfunding choice with the angel investor choice from the start up’s tactical standpoint.
The case is suitable for graduate and undergraduate level courses on fiscal strategy and entrepreneurship management.
The case can be used to discuss the different options available for generating funds at the start-up’s distinct phases of development.
SenseGiz Funding a Start-up case study solution
Publication Date: 10/07/2015
This is just an excerpt. This case is about Finance
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