Assignment #3 – FEED Recovery Resources – Sourcing Funding Opportunities Michael Field Professor Steven Droll New Business Venture and Entrepreneurship May 24, 2014

Table of Contents | Section | Page | Abstract ………………………………………………………………….. | 3 | Introduction – Gaining Financing to Execute Business Plan...……………… | 4 | Source of Competition………………………….……….……………………. | 5 | Venture Capitalists Pursuit of Green Technology….……………………….. | 6 | Timing of Investment by Venture Capitalist…………………………………. | 7 | Friends and Family Financing……………………………………………….. | 10 | Angel Investor as Other Source of Capital………………………………….. | 12 | Conclusion …………….…………………………………………………….. | 13 |

Abstract
Shane Eten and Ryan Begin need to gain $250,000 in financing to launch their business venture, FEED Resource Recovery. Their business plan has gained some traction in presentations to venture capitalists without anyone taking the plunge. They have also gained some interest from potential customers, but have not secured commitments from anyone. Their current efforts focus on securing funding from available sources. As they approach potential investors, they need to acknowledge the possible downsides to their business plan including the invasion of competitors into their identified markets as well as a realistic valuation for the business based upon their lack of customers and lack of product prototype. Nevertheless, their focus on funding could emphasize friends and family as well as angel invstors.
Gaining Financing to Execute Business Plan
Budding entrepreneur, Shane Eten, developed a plan for a business that he envisioned during his graduate studies at Babson College. In pursuit of Green Technology, he planned to utilize anaerobic digestion (AD) to turn biodegradable waste into fuel (biogas) for a distributed electricity generation unit with a