Circle Lending

Babson Professor Les Charm, Case Director

Richard Luecke, Case Writer

Arthur M. Blank Center for Entrepreneurship

© Babson College, 2007.


This case describes the financing of a start up financial services company during the first four years of its development. Like other start-ups, its founder initially sought funds close to home through loans from family members, friends, and family. The case describes how he networked to the larger pools of capital available from individual business “angels” and angel groups. His methods, failures, and successes—and frustrations—are recounted in detail. The views of several key investors are also recorded in their own words.

Teaching Objective: The case aims to facilitate discussion on: the concept of lending between friends, families, and business associates; the opportunities and risks associated with CircleLending; the sources of capital for early stage companies; what entrepreneurs must personally do to tap early-stage financing; the attitudes and methods of angel investors; the elements of a successful financing campaign.

Key Words: Angel Financing, Sources of Capital


There is a 65 minute DVD available for this case. Please place orders through ecch.

Teaching Notes

A 3-page teaching note written by Les Charm is available for this case.