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.
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
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