Wink Communications

Babson Professors Stephen Spinelli and Julian Lange, Case Directors

Jason Cannon and Brett Gordon, Case Writers

Arthur M. Blank Center for Entrepreneurship,

© Babson College, 1999.

Abstract

An interactive television (I-TV) company, in the early-stage growth period, is continuously searching for large amounts of additional financing to support their research and development efforts. The company plans to deliver movies on demand to consumers as well as enhanced shopping capabilities and high-quality educational programs. While few doubt the technical capabilities of the company, there are unanswered questions regarding market demand. As the company enters its fourth year, expenses for R&D and marketing increase dramatically, revenues are barely visible and mounting losses are causing increased concern and demand for new funds. The company has already given up over fifty percent of its equity to investors, when one of the industry giants enters the picture with a financing offer that the President is apprehensive about and she asks for her senior staff's assessment.

Location of the company: Massachusetts

Years spanned by the case: 1994 through 1997

Industry segments: Communications

Stage of the company: Early growth

Age of the entrepreneurs: early 30's

Key Words: Entrepreneur, communications, finance, technology, research and development

DVD

There is no DVD available for this case.

Teaching Notes

A ten page case teaching package, written by Steve 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.