HydroSafe: Emmas investment issues

Emma's start-up HydroSafe offers a new solution for waste handling below fish farms and demonstrates a proof of concept of their technology that has received attention in the media. Nevertheless, the venture struggles with its financials, but now some funding options have appeared for the team: one being two angel investors and the second the leading supplier of fish farm equipment. The other team members in HydroSafe have issues with both options, but simultaneously, HydroSafe's bank account is approaching negative numbers, forcing Emma to decide fast and raise sufficient capital. This case illustrates the importance of thorough decision-making. The purpose of the case is to let students experience and learn from the difficulties of evaluating funding for start-ups' early stages. The case presents different options that might seem favourable, but there are still issues regarding the different options. Since the case is based on real experiences, any entrepreneur in the process of raising capital could learn from the case. Several important issues are presented in the case; however, they ultimately revolve around the critical judgement of different potential stakeholders. Students should put themselves in Emma's position and evaluate the different options, considering the stage of the technology, record of accomplishment of the different investors, and team members' opinions.