Case Study: Feed Resource Recovery

Initial Capital Requirements: - Huge initial development period and very high investment costs, tooling costs, and WIP are necessary even before the company starts

1) Patagonia has a history of putting sustainability ahead of profits. Based on what you learned about Patagonia’s ideals, how do you think the company determines what possible ventures will be both business practical and environmentally friendly?

Capital can come from state and corporate pension funds, public and private endowments and personal investors

The company went from attempting to create an online platform for bike consumers to now developing an invaluable product for government bike share programs across the nation. Although Sam did offer to invest in Rebicycle Owen wrote her a letter of decline. During the moments he wrote he received an email from a city in the Netherlands which is now giving the possibility for international opportunities and customers are now finding Rebicycle without doing anything. He thinks it’s too soon for investment and they still have yet to complete a transaction where rebicycle will supply an entire fleet or figure out what level of maintenance and support are required. There is just too many assumptions left unresolved and would like to revisit the conversation of investment with Sam in 6

The ALPES S.A. case deals with Charles River Laboratories (CRL) and their consideration of a joint venture proposal with an animal vaccine company in Mexico. The senior V.P. is preparing to present the proposal of a $2 million investment for the firm. The CEO, Jim Foster, is concerned with the associated risks that CRL would be undertaking if they accept this venture.  Key issues of concern are; the partnership with a relatively small, family run business; having operations in Mexico, which could pose difficulties; maintaining CRL’s focus on U.S. expansion; and the proposed partner’s lack of funds to invest, which will leave CRL  to  bear the entire cost of the venture.

Yorktown Technologies is a fairly new company that is marketing and introducing GloFish into the market. In 2002 Yorktown raised $500,000 fro investors under the projection that it would have $4,000,000 in profits in 2004. Sadly the company only had $500,000 in revenues and had an outstanding $620,000 in expenses leaving the company $120,000 in the red (Roger A. Kerin, 2010). Alan Blake of Yorktown Technologies is searching for what to tell the board of directors in the next board meeting. Major changes are needed in order for Yorktown to turn around and become profitable.

I have reviewed the notes from the above meeting from Todd Schuver and have spoken to a few of the other partners. I remain quite concerned about the financial stability of the project and its future ability to produce a return on invested capital.

5. The $1.4 million funding are not enough to purchasing 40% of equity in SecureNet INC. The result of around 40% is coming from two parts, one is the $1.4 million funding, and another part is from $0.5 million repayment of bridge loan which convert into investment to purchasing preferred stocks.

Hart Venture Capital (HVC) specializes in providing venture capital for software development and Internet applications. Currently HVC has two investment opportunities: (1) Security Systems, a firm that needs additional capital to develop an Internet security software package, and (2) Market Analysis, a market research company that needs additional capital to develop a software package for conducting customer satisfaction surveys. In exchange for the Security Systems stock, the firm has asked HVC to provide $600,000 in year 1, $600,000 in year 2, and $350,000 in year 3. In exchange of their stock, Market Analysis has asked HVC to provide $500,000 in year 1, $350,000 in year 2,

With nearly 80 percent of all new business startups failing, entrepreneurship has proven itself to be a great risk in this economy. The book A Raisin in the Sun points out essential flaws and weaknesses in many venture capitalists’ thinking. A Raisin in the Sun exhibits a man named Walter

This haevily disguised case is set in the “nature “woodstoves business in 1986. It is not based on The Vermont Castings Company. The issue is product line strategy based on product line profitability.

He was still faced with the problem of raising close to $10 million on an equity base

Venture capital is another option for a start-up business, however, these types of companies tend to invest more in high-growth potential companies like those in the technology industry. Miller could also approach his corporate customers with a proposal for their investment. He could offer interest in his company in exchange for capital. (Shein, 2011)

Without fund Evans may be forced to abandon the venture. And time is pressing against her. With a lot of personal funds already invested she has a limited window of time that she will have before she will not have enough money to sustain herself while the business grows to where she could take a salary

Another issue was the finance from the conventional sources which were reluctant to invest. They would need at least £235,000 to add to their own invest of £45,000 to cover the costs and operational losses for 12 months period. But, if it works out, then they would at £1 million profit by year five. Despite their enthusiasm and impressive CVs, the business angels deterred by their lack of experience in this market sector. However, they managed to get an appointment with Maurice Pinto, a private investor, who agreed to invest £235,000 for a 20 percent share in the company.