Case Name :      Global Remediation: Funding Future Growth

Authors :           Stephen Sapp

Source :             Ivey Publishing

Case ID :            W13175

Discipline :        Finance

Case Length :    09 pages

Solution Sample availability : YES

Plagiarism : NO (100% Original work)

A small startup firm in the environmental services industry has spent the majority of its time developing its technology and overcoming the significant regulatory hurdles involved in bringing its technology to market. Having achieved success with the technology, the company must now decide which path to take to grow. The owners can try to raise the money themselves through a bank loan and do the expansion on their own terms. On the other hand, they can forge a financial partnership with a venture capital firm or a strategic partnership with another firm, or they can issue preferred shares to a local investment fund or corporate bonds to a local insurance company. These alternatives will share the risks and expense of expansion, but the company may lose some autonomy in its decision making in future.