Case | HBS Case Collection | February 2013

18 Months in a Startup: Zaggora.com

by Tom Nicholas

Abstract

The founders of Zaggora reflected back on a tumultuous year-and-a-half in which they had generated, from just $40,000 in personal savings, a multi-million dollar sportswear enterprise selling Hotpants to women. These were hotpants not of the 1960s hipster variety, but instead the first sportswear product of the new brand Zaggora that was made with a specially developed multi-ply fabric technology that heated up during a workout. While the founders had faced several challenges including averting bankruptcy, now they faced an equally difficult time ahead. Should they grow the enterprise by continuing with their current bootstrapped online approach, or attempt to get their product into retail stores? Should they continue to self-finance and keep control, or cede some control by taking on venture capital funding?

Keywords: Online Technology; Growth Management; Problems and Challenges; Business Startups; Brands and Branding; Innovation and Invention; Corporate Finance; Apparel and Accessories Industry; Sports Industry;

Citation:

Nicholas, Tom. "18 Months in a Startup: Zaggora.com." Harvard Business School Case 813-140, February 2013.