Carbon Zen: Crossroads for a tech start-up (B)

It was March 2023, and Carbon Zen (COz), the startup Lara Román co-founded a year ago, was entering a new stage of growth. The pilot of their AI product at the car manufacturing plant was giving encouraging first results, and they were receiving inquiries from other potential industrial customers. On top of that, they had just closed their first round of financing of $1 million with Cima Capital, and the new Board was already in place. One of the priority items that was being discussed by the Board was new hirings. After a first few months where the co-founders, and Román in particular, had to wear many hats to keep the company ticking, the startup's organization had to grow. Reflecting on her struggles pitching the product to potential investors and clients, Román had concluded that one of the priorities was finding a great hire to set up and lead their Marketing efforts. This person would be responsible for bringing in new clients and for implementing customer relationship initiatives aimed at retaining existing ones. The case presents the two strongest candidates - with different backgrounds, experience, and compensation expectations - that Román will have to consider.
Collection: IESE (España)
Ref: E-246-E
Format: PDF
Number of pages: 2
Publication Date: Feb 19, 2024
Language: English

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Description

It was March 2023, and Carbon Zen (COz), the startup Lara Román co-founded a year ago, was entering a new stage of growth. The pilot of their AI product at the car manufacturing plant was giving encouraging first results, and they were receiving inquiries from other potential industrial customers. On top of that, they had just closed their first round of financing of $1 million with Cima Capital, and the new Board was already in place. One of the priority items that was being discussed by the Board was new hirings. After a first few months where the co-founders, and Román in particular, had to wear many hats to keep the company ticking, the startup's organization had to grow. Reflecting on her struggles pitching the product to potential investors and clients, Román had concluded that one of the priorities was finding a great hire to set up and lead their Marketing efforts. This person would be responsible for bringing in new clients and for implementing customer relationship initiatives aimed at retaining existing ones. The case presents the two strongest candidates - with different backgrounds, experience, and compensation expectations - that Román will have to consider.
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Year: 2023
Geographic Setting: Chile

Learning Objective

The case presents several key decisions facing a young startup. In particular, the process and decisions arising from selecting the first employees and their compensation, including the implications of using equity-based compensation.

Carbon Zen: Crossroads for a tech start-up (B)

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"Carbon Zen: Crossroads for a tech start-up (B)"