Jim Poss Case

1. Apply the Timmons entrepreneurship framework to analyze this case. Pay particular attention to the entrepreneur’s traits and how he gathered resources for his venture.

i. Entrepreneur

• An engineer’s mind

 creating gadgets from parts

 using spreadsheet to calculate most efficient layout of motors, controllers, power converters, and other hardware (Solectria)

• Environmentally conscious (Solectria)

• Production/Supply Chain Experience (boat company)

• Jeff Satwicz

 Engineer

 Experience in remote vehicle testing for DoD

• Alexander Perera

 Degree in Environmental Science from BU

 Industry experience in renewable energy use and energy efficiency measures

ii. Opportunity

• Design products that are more cheaper and more efficient that 20th century technologies

• Solar powered trash compactor

• Compact trash (environment friendly) and cut pickups 400%

• Solar powered trash compactors didn’t exist

iii. Resources

• Seed funding of $22,500

 $10K from Jim’s Savings

 $12.5K from hatchery program of Babson College

• Won $1,500 in patent services from Brown/Rudnick

• Leveraged campus and contractor facilities as much as possible

• $12,500 from parents

• $12,500 from Investor

• $25,000 from Spire Corporation

• Won a Babson College competition for $20K cash and $40K in services

• $50K from an investor

2. Discuss Jim’s fund-raising strategies. What other options might be considered for raising the funds SPC needs? Is this a good investment?

They put up money themselves at first. Using their money, winnings, and parent’s money. They received some funding from investors but it wasn’t much at first. They also turned down a company willing to give them money and then finance their future needs (dependent on milestones). When they established a bit of a reputation then they went to a group of investors.

He could have immediately gone for investment meetings after creating the first prototype to draw money in for the next round of...