Jane Chen (GSB ’08) and Brian Trelstad (GSB ’99) had known each other for years. Trelstad the Chief Investment Officer of nonprofit global venture fund Acumen Fund, was a mentor for Chen and her colleagues as they develop a low-cost infant warmer to work the needs of low-birth-weight babies, meet their mothers and healthcare providers in developing countries. Chen, who was appointed Chief Executive Officer of Global Hug, founded the non-profit to achieve this goal, came … Read more »

Jane Chen (GSB ’08) and Brian Trelstad (GSB ’99) had known each other for years. Trelstad the Chief Investment Officer of nonprofit global venture fund Acumen Fund, was a mentor for Chen and her colleagues as they develop a low-cost infant warmer to work the needs of low-birth-weight babies, meet their mothers and healthcare providers in developing countries. Chen, who was established as Chief Executive Officer of Global Hug, the non-profit to achieve this goal, the guidance value Trelstad had come to trust his advice and The end of 2010, when she and her team on the verge of their innovative new products were on the market, Chen and Trelstad relationship took on a new dimension. Hug sought an infusion of funds at its launch to support and help the company to quickly achieve scale. In parallel, Acumen Fund has continued to look for organizations with game-changing products and services need patient capital on their way to becoming self-sustaining enterprises that effectively serve the poor. Suddenly Trelstad was a potential investor and Chen was a prospective investee. When she the possibilities of a financial partnership, explores one of the most important issues facing was hug, whether or not it should consider a for-profit or hybrid organizational structure to make it more substantial resources through the acquisition of equity investors could increase. Acumen Fund had to consider whether or not to take it into investing in embrace, as the company, and how large a stake it to be ready when a business moves forward might think appreciate interested. This case examines the situation from the perspective of both organizations and can be used to support a high-level negotiations between the two parties.
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from
Lyn Denend,
Bill Meehan
Source: Stanford University
35 pages.
Release Date: 14 April 2011. Prod #: SM191-PDF-ENG
Acumen Fund and Embrace: from the leading edge of social venture investing HBR case solution