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Role-play
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Reference no. E812-018-1
Spanish language
Subject category: Entrepreneurship
Published by: IE Business School
Originally published in: 2012
Version: 27 July 2010

Abstract

This is a Spanish version. The case follows Tom Szaky, a 21 years old Princeton freshman, in the process of raising funding for Terracycle, a start up that has a great ambition to change the way the world uses garbage. The core business of Terracycle is to collect garbage, feed it to the worms, to end up using worm castings and produce organic fertilizer. Despite having achieved many important milestones, two years after founding, Terracycle still had no real client contracts and just $500 in the bank, leaving Szaky and his team in a very common entrepreneurial situation: with an urgent need to evaluate the company´s strategic and financing options. The case is intended to be taught as part of the Entrepreneurial Management curriculum to address issues related to financing and deal terms. It will provide students with an understanding of the different sources of financing for new ventures and their implications. In particular, the case exposes students to the challenges of finding an adequate investor, understanding investors’ interests, and accordingly structuring a fair deal with investors.

Time period

The events covered by this case took place in 2001-2003.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Terracycle
Employees:
501-1000

About

Abstract

This is a Spanish version. The case follows Tom Szaky, a 21 years old Princeton freshman, in the process of raising funding for Terracycle, a start up that has a great ambition to change the way the world uses garbage. The core business of Terracycle is to collect garbage, feed it to the worms, to end up using worm castings and produce organic fertilizer. Despite having achieved many important milestones, two years after founding, Terracycle still had no real client contracts and just $500 in the bank, leaving Szaky and his team in a very common entrepreneurial situation: with an urgent need to evaluate the company´s strategic and financing options. The case is intended to be taught as part of the Entrepreneurial Management curriculum to address issues related to financing and deal terms. It will provide students with an understanding of the different sources of financing for new ventures and their implications. In particular, the case exposes students to the challenges of finding an adequate investor, understanding investors’ interests, and accordingly structuring a fair deal with investors.

Settings

Time period

The events covered by this case took place in 2001-2003.

Geographical setting

Region:
Americas
Country:
United States

Featured company

Terracycle
Employees:
501-1000

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