Off Grid Electric: Strategic Financing For Growth Case Solution
The Off Grid Electric case concentrates on the production, growth, and financing of the business from 2011 through the middle of 2014. The 3 cofounders saw a chance to offer solar electrical energy to much of Africa through their solar-as-a-service option, which they released in Tanzania in 2012. The Off Grid Electric service design was really capital extensive, and the brand-new endeavor had numerous dangers from the point of view of financiers: market, service design, personnels, innovation, and exit. As such, CEO Xavier Helgesen had to believe tactically about how-- when-- to raise money in order to grow business. In addition, the executive group had to remain in arrangement on the business's growth strategy. Should Off Grid Electric concentrate on quick growth? Should they stress creating money? Exactly what would these options suggest for Off Grid Electric's financing requirements?
At the end of the case, Helgesen gets 2 term sheets for a prospective Series D loan. One is from Zouk Capital, a monetary financier, and another is from Solar City, a tactical financier who had actually formerly bought Off Grid Electric. Trainees are asked to assess the term sheets from Helgesen's viewpoint, along with to examine a financial investment in Off Grid Electric from the viewpoint of a financier.
Knowing Objective
The main knowing goal of the case is to assess Off Grid Electric's fundings. Should administration have done just about anything in a different way in increasing its Series A, B, or C financing rounds? How should the business be valued by financiers? How should administration assess numerous financiers, and how should financiers assess Off Grid Electric? And how should Off Grid Electric monitoring think of future loan requirements?
This is just an excerpt. This case is about Business