Acumen Fund and Embrace: From the Leading Edge of Social Venture Investing Case Solution And Analysis, HBR Case Study Solution & Analysis of Harvard Case Studies

Jane Chen (GSB '08) and Brian Trelstad (GSB 99) have known each other for years. Trelstad, chief investment fund non-profit global venture fund Acumen, was a mentor Chen and her colleagues as they worked to develop a low-cost infant warmer to meet the needs of low-birth-weight children, their mothers and health workers in developing countries. Chen, who became chief executive officer of the Global Embrace, a nonprofit established to achieve this goal, came to specify the value of Trelstad and trust his advice. In late 2010, when she and her team were on the verge of getting their new products to market, the relationship Chen Trelstad took on a new dimension. Embrace sought infusion of funds to support the launch of the product and will help the company achieve faster scale. Parallel Acumen Fund continues to look for organizations with a game changing product and service needs in the capital for the patient way to becoming an independent company that effectively serve the poor. Suddenly, Trelstad was a potential investor, and Chen was a promising area for investment. As they explored the possibilities of financial partnership, one of the key issues facing the Embrace whether it should consider the adoption of a non-profit, or hybrid organizational structure so it can raise more funds by taking on equity investors. Acumen Fund had to think about whether or not it was interested in investing in the arms, how to evaluate a company, and how large proportion may be willing to take if the deal went forward. This case addresses the situation from the point of view of both organizations and can be used to support high-level talks between the two sides. "Hide
by Lyn Denend, Bill Meehan Source: Stanford University, 35 pages. Publication date: April 14, 2011. Prod. #: SM191-PDF-ENG