Uncharted Play (A)

The case recounts the process of launching an early stage venture, from idea conception through initial efforts to validate the concept, followed by product launch, and fund raising. It emphasizes the Customer Value Proposition of the business model, and asks – Who is the payer? Who is the user? How do you measure value? While in college at Harvard University, Jessica O. Matthews and a few friends came up with a way to harness kinetic energy from a soccer ball. The technology would ultimately allow owners of the ball to play with it, and then use the ball to power a small lamp, potentially helping people in countries without access to power. The magic of the ball was instant – Matthews was heralded by the media and celebrities. As Matthews started to turn the product into a company, she realized how difficult it was to go from prototype, to product, to a functioning, profit-making company. Moreover, she was physically and emotionally drained from the constant travel between Boston (where she was attending business school at HBS) and New York (where she was building the company), and by the challenges of manufacturing a product without adequate capital. How she could translate the hype around the company into stable revenues and a positive cash flow? Towards the end of case (April 2014), Matthews was positive about the viability of the company and its future. She had sponsorships from large companies, and the Nigerian government had expressed interest in a multimillion dollar contract. Moreover, the World Cup in Brazil was nearing, where the company could get more visibility and renewed interest from sponsors. Matthews faced a decision: should she raise money now to get ready for scale, or following the World Cup (with a possibly higher valuation)?