Case Name :      SenseGiz: Funding a Start-up

Authors :           Mrinalini Shah, Anuj Kulkarni

Source :              Ivey Publishing

Case ID :           9B15N017 / W15461

Discipline :        Finance

Case Length :    10 pages

Plagiarism : NO (100% Original work)

Two engineers founded a start-up for the design and development of Internet of Things and wearable technology products. They received initial seed capital from family in lieu of equity shares. The company developed a product that could be used to search for misplaced items through the user’s phone. The product was expected to be ready for mass production in a week. However, in spite of potential huge demand, the company did not have funds for mass production because it used the seed capital on the design and development. The supplier would not produce unless the start-up paid up front. The technology start-up needed to analyze all the available options for funding mass production of its product and choose the most suitable one.