Babson Case Number: BAB096 | Length: 19 Pages

Abstract

Jim Poss’s enterprise, Seahorse Power Company (SPC), was an engineering start-up that encouraged the adoption of environmentally friendly methods of power generation by designing products that were cheaper and more efficient than twentieth-century technologies. Jim was sure that his first product, a patent-pending solar-powered trash compactor, could make a real difference.

After funding the product development and testing, by May of 2004, the Seahorse Power Company had a total of six team members. They had all been given an equity stake in exchange for their part-time services. Jim was seeking funding to allow him to take the business to the next level with a larger production run with reduced component costs and increased production efficiencies.

The case chronicles the evolution of the company and places Jim at the critical juncture of deciding how best to deal with potential investors and funding alternatives.