Case Study: FEED Resource Recovery
This case analysis is about Shane Eten’s business idea to turn food waste in to biogas locally through composting technology rather than big centralized ones that already exist. He and his newly found partner Ryan are trying to find investors to start off their business in the CleanTech industry. Shane has had a successful experience as an entrepreneur in small business and is now eager to start something on his own, his ambition can only be matched by Ryan’s determination to do something new and exciting with his engineering talents. These two ambitious individuals have everything except investors. Shane has managed to create a buzz about his business by winning business-plan competitions and awards. Through this newly found fame and strong connection, he has already generated lot of interest from lot of investors. However, despite their ambition and a good idea, Shane and Ryan now face few challenges and new issues arise. Key Issues:
One key issue is that the CleanTech industry is booming at an unprecedented rate, soon more entrepreneurs would take notice and start moving in. Shane has a rare opportunity where this new industry is still not crowded, however, if he fails to get the funds he needs on time new players and existing waste management giants can move in with cheaper and better products than Shane’s R2 prototype. They might have the capital that Shane doesn’t. Even though Shane manages to raise capital to construct his prototype, the time it takes to complete the construction of the prototype can also be another issue. Another issue that this case suggests is the lack of overall experience of the team. Shane has admitted that he does not have enough experience to deal with venture capitals alone; this is proven with his failed attempts finding investors even though there are lot of interest. Even Ryan, ambitious and talented he may be, still lacks experience in the new field he entered. He has...
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