Hövding: The Airbag for Cyclists

In 2012, Anna Haupt and Terese Alstin, co¬founders of the Hövding company, reflect on the evolution of their venture and the way forward. Since 2005, Haupt and Alstin had been working on a new type of bicycle helmet—an "airbag for cyclists." What had begun as a thesis had grown into a seven-year journey of research and development, including raising over $10 million of venture capital. The product had been granted Europe's CE certification in 2011 and had been launched simultaneously in Sweden and Norway. Yet, a year later, the company had still not reached the break¬even point. To help them establish a commercialization strategy, the Hövding board had prevailed upon the founders to hire a professional CEO. But surrendering management control was an emotional process for Haupt and Alstin, while the CEO struggled to assert his leadership and build the company's commercial capabilities. Should Haupt and Alstin collaborate with their CEO despite their misgivings, or should they step away from the company they had dedicated seven years to building?