Good Money After Bad Essay

1193 Words Apr 30th, 2014 5 Pages
Christian Harbinson is an associate at Scharfstein Weekes (SW), a venture capital firm based in Palo Alto and specialised in Medical instrument industry. Harbinson joined the company 6 months ago and is responsible for covering the $600,000 investment (out of a $100m fund) in Seven Peaks Technologies (SP), a company that has developed an innovative cauterizer used for electro surgery.
Jack Brandon, the founder of SP, has developed a new cauterizer that is faster and more reliable than currently available technologies. Its main feature is that it does not stick to tissues during the cauterizing process, contrary to other similar products available in the market.
Brandon has invested $65k of his own money in the development of the product
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He proved his capability by bringing product to the market on time. * His inability to market product to the distributor despite a good product is really questioning his ability as an entrepreneur. * His failed to assess the pros and cons of his product and could not push the sales further due to lack of incentive on the distributor side to push a single product from unknown vendor. * According to him, he needs to educate everyone about his product which is an uphill task but needs to be done for making it a blockbuster device. * Brandon has a good relationship with his investor and hope to get further support for his new forceps project

Questions: * Did Brandon become overconfident when he said to the VC that he understood the problem? * Did Brandon realized that developing a product is one thing and making it successful another? * How can entrepreneur (Brandon) make second project commercialize?

The Company, Seven Peaks
Key elements: * Seven Peaks is very young medical technology company. * The company had already developed an innovating device for cauterizing blood during electro surgery. * Even though Brandon is sure that the second product will break even in the third year, he showed no enthusiasm for the first product.

Questions: * Can the company manufacture the electrosurgical forceps commercially? * Will the company be profitable with the sale of

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