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Babson Professor Andrew Zacharakis, Case Director

Reuben Zacharakis-Jutz., Case Writer

Arthur M. Blank Center for Entrepreneurship

© Babson College, 2008.

Abstract

Shane Eten is passionate about being an entrepreneur and finds an opportunity in managing food waste; a Clean Technology startup. Shane develops a plan for an anaerobic digester that will convert grocery store food waste into energy and organic fertilizer. The case explores Shane’s entrepreneurial journey, from working in a high tech startup, a low tech candle maker, an MBA student to gaining recognition in business plan competitions for the anaerobic digester. At the point in time of the case, Shane needs to raise some capital to develop a prototype and prove his concept. Shane struggles in identifying sources for the $250,000 he needs to launch his dream. Although Shane has garnered lots of interest from potential investors during his success in business plan competitions, his venture is too early and the capital needed is too small for venture capitalists. He could seek angel capital, but how can he identify these “hidden” angels? Friends and family are a possibility, but Shane isn’t sure that his contacts have enough capital available for him. Besides, he would like to preserve as much ownership as possible at this point in time, because he recognizes that he’ll need to raise more capital to build out the company if the prototype is successful. This is a good case to explore alternative sources of capital.

Teaching Objective: To search for alternative sources of capital for launching a new venture.

Keywords: Clean Technology, Entrepreneurship, Opportunity recognition, Raising capital, Bootstrapping, Core customer, Team Building

DVD

There is a 30 minute DVD available for this case. Please place orders through ecch.

Teaching Notes

A 9-page teaching note written by Andrew Zacharakis is available for this case.