oodFor the exclusive utilization of Z. CAO
HBR CASE STUDY AND COMMENTARY
S i9000 hould Harbinson
recommend farrenheit urther
my spouse and i nvestment in Seven
Good Money After
Four bloggers offer
elizabeth xpert advice.
by David W. Mullins
This kind of document can be authorized for proper use only simply by Zheng Cao in LSU Venture Capital -- Spring, 2012 taught by MICHAEL KIRBY from January 2012 to May 2012.
For the exclusive usage of Z. CAO
Jack Brandon's initial thought has not panned out, as well as the cash is nearly gone. Nevertheless he's got a new strategy. Will you back him the second time?
HBR CASE STUDY
COPYRIGHT В© 2007 HARVARD BUSINESS UNIVERSITY PUBLISHING ORGANIZATION. ALL PRIVILEGES RESERVED.
simply by John Watts. Mullins
Coming from a rocky perch overlooking the dazzling
lights of San Francisco, Christian Harbinson
gazed across the these types of to the hills above Sausalito. " Irritating like a vigorous hike, вЂќ he thought, " to clear the mind ahead of a crucial
getting together with. вЂќ It was a mild Mar evening, plus the
35-year-old enterprise capitalist was reп¬‚ecting upon
the advice he would have to make to
his п¬Ѓrm's investment panel the next
morning hours about Jack Brandon's youthful company, Eight Peaks Technologies. Seven Highs had designed an innovative unit for cauterizing blood vessels during electrosurgery, and although the opinions from doctors had been exceptional, sales had been slow. The Palo AltoвЂ“based venture capital п¬Ѓrm where
Harbinson worked, Scharfstein Weekes, had invested $600, 000 in Seven Highs from its recently raised second fund of $100 million. SW's current investment approach focused on early-stage medical technology companies, and Seven
Highs was a typical investment intended for the п¬Ѓrm,
which liked to join on appealing ideas slightly and then comply with with additional rounds of capital after technological and market breakthrough had been fulfilled. The $600, 000 was nearly gone; Harbinson fantastic colleagues were required to decide whether to put more into the unable company.
Several Peaks wanted another
$400, 000 to produce a second merchandise based on
it is proprietary technology, which empowered surgical instruments to do their very own work devoid of sticking to tissueвЂ”a frustrating trouble for most electrosurgeons. Brandon continue to believed in his
technology and in his capacity to commercialize
that. Harbinson was impressed equally with Brandon
and with the technology's potential, however, many
of the mature partners were not so sure. " Would
we simply be throwing good money after awful? вЂќ
SW's cofounder Later on Scharfstein acquired asked when ever
Harbinson told the purchase committee of
HBR's circumstances, which are п¬Ѓctional, present common managerial dilemmas and offer cement solutions by experts.
harvard business assessment вЂў 03 2007
This kind of document is definitely authorized for use only simply by Zheng Cao in LSU Venture Capital - Spring, 2012 taught simply by MICHAEL KIRBY from January 2012 to May 2012.
For the exclusive use of Z. CAO
G ood Money After Bad? вЂўвЂў вЂўH BR C A SE H T UDY
compare paperwork and speak to one another about
new improvements. To make sure he was on
your path, Brandon got given his prototype to a few surgeons he knew to learn what they thought of it. " Too large, вЂќ one of them
said. " It will eventually block my own view with the surgical site. вЂќ
Another told him, " I prefer how it works and
saves me period, but it's a lot of difficulty to take that
apart after each process in order to sterilize
Brandon remodeled his system based on the
feedback, after several months of diligent
work, he gained FDA acceptance. The redesign was
smaller sized and slimmer for better access to the surgical web page and did not require any kind of disassembly for sterilization. It had been time to see how the market might react.
Harbinson was equally impressed by Brandon's showmanship. The Seven Highs cauterizer made its first appearance at a surgical trade show in Atlanta. It absolutely was the look at the fair. Brandon experienced
bought several п¬Ѓsh by a local industry, and this individual
did side-by-side operations...