Case | HBS Case Collection | September 2007 (Revised October 2010)

DermaCare: Zapping Zits Directly

by Richard G. Hamermesh and Lauren Barley

Abstract

DermaCare has developed an innovative new product for the treatment of acne that they hope to sell to consumers via direct-response television. The unconventional nature of the product and its distribution has led the company to seek angel financing. The Silicon Valley Band of Angels has agreed to finance the company and has submitted a proposed term sheet. Recently, however, a venture capital (VC) group has submitted a competing term sheet. The company must decide whether to accept financing from the Angels or the VC group.

Keywords: Decision Choices and Conditions; Venture Capital; Investment; Innovation and Invention; Product; California;

Citation:

Hamermesh, Richard G., and Lauren Barley. "DermaCare: Zapping Zits Directly." Harvard Business School Case 808-064, September 2007. (Revised October 2010.)