Babson Professor Stephen Spinelli, Case Director
Alex Hardy, Case Writer
Arthur M. Blank Center for Entrepreneurship
© Babson College, 2001.
Abstract
A start-up software company develops an authoring tool for interactive content on the Palm Operating System and other handheld computers. Their system of "dragging and dropping" content into the computers without writing any software code makes it easy for users with limited programming abilities to create and organize their content. With sales of hand-held computers expected to grow forty percent per year, company founders are confident that there will be numerous investors available to finance the company's growth.
However, after receiving a modest initial investment, problems begin with the investor and the structure of the deal. Almost without warning, the company faces extinction unless a new investor(s) is found within 30 days. The aspiring but inexperienced entrepreneur scrambles to create buy out and investment options for potential suitors.
Location of the company: Ashland, Massachusetts
Years spanned by the case: 1999-2000
Industry segment: Computer Software
Stage of the company: Start-up
Age of the entrepreneurs: Mid 30's
Key Words: Entrepreneurship, start-up, software, valuation, investor relations
DVD
No DVDis available for this case.
Teaching Notes
A one page case teaching package, written by Stephen Spinelli, is available for this case. The teaching package includes strategies for case presentation, key concepts, solutions to the assignment questions in the case, and suggestions for the most effective ways to work this case into a course.
