Lovepop

Robert F. White; Ramana  Nanda; Olivia  Hull

Case | HBS Case Collection | October 2017 (Revised November 2017)

Lovepop

by Robert F. White, Ramana Nanda and Olivia Hull

Abstract

As they prepare to graduate from Harvard Business School, the co-founders of greeting card company startup Lovepop need capital to cover the company’s operating costs and must choose between two seed financing offers. One offer is from an angel group and the other from a startup accelerator. Having bootstrapped the company’s operations since its founding a year and a half earlier, the founders must weigh the differences in valuation and pros and cons of the accelerator program to determine which option is appropriate for Lovepop at this stage. In addition to addressing the challenges of early stage fundraising, the case details the terms, offerings, and operations of startup accelerators.

Keywords: accelerator; incubator; Seed Financing; convertible debt; Entrepreneurship; Venture Capital; Financing and Loans; Borrowing and Debt; Growth and Development Strategy; Valuation; Consumer Products Industry; Retail Industry; Boston; Massachusetts; United States;

Language: English

Format: Print

21 pages

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Citation:

White, Robert F., Ramana Nanda, and Olivia Hull. "Lovepop." Harvard Business School Case 818-015, October 2017. (Revised November 2017.)

In April 2003, entrepreneur and MBA student Christy Jones was planning a new venture to help women preserve their fertility. Her company, Extend Fertility, would commercialize a technique known as egg freezing, in which a woman’s eggs were extracted and stored at low temperatures until she was ready to become a mother. To date, the emerging technology had mostly been used to preserve the fertility of cancer patients whose treatment course could damage their eggs. Jones’s business would target a massively broader population: healthy women wishing to postpone motherhood. Before Jones could launch Extend Fertility, she needed to answer two pressing questions. What, exactly, would an egg-freezing service be selling? And to whom?

Case | HBS Case Collection | January 2018 (Revised January 2019)

ZappRx

Jeffrey J. Bussgang and Olivia Hull

In October 2015, ZappRx founder Zoe Barry is deciding between two business models for her health technology start-up. Her product, a software application that aims to expedite the prescription fulfillment process for patients with rare diseases, has attracted interest from specialty drug manufacturers who wish to build an exclusive platform for patients taking their medications. But Barry, against the advice of her management team, is considering an alternative business model, which would open the platform up to all manufacturers in a given disease area. Instead of financing product development through individual contracts, the comprehensive platform would be free to doctors and pharma alike and financed via an aggressive fundraising strategy and through the sale of the prescription data collected on the app. Barry is willing to take the risk, but her management team is staunchly opposed. Which path should ZappRx take? The case is a window into the early go-to-market and business model decisions that an entrepreneur must make, in this case in the face of pushback from her own management team. The case also provides a detailed picture of the specialty pharmaceutical industry and challenges students to think about target customer identification and talent management in a start-up environment.

Keywords: Speciality Drugs; Hub Services; Pivot; Speciality Prescriptions; Health Care and Treatment; Customization and Personalization; Online Technology; Business Model; Decision Choices and Conditions; Pharmaceutical Industry; Massachusetts;