The categories of costs I would expect to see in a list of MooBella start-up costs are:
Employee wages and benefits
Computers, internet, telephone, and other technology
Promotion, advertising, web site hosting
2. It took nearly 20 years from idea to market for MooBella. Clearly, it had a long development and start-up period. Reflect on the emotional and other nonmonetary factors that were likely involved for Bruce Ginsberg.
MooBella was a seemingly simple concept that was technically complex and cost nearly $85 million in investment capital. Ginsberg was faced with many challenges with the research, development and start-up processes. The machines themselves were very costly, costing approximately $40,000 per machine, and it took 5 years to develop the computer portion alone.
3. What was the mix of funds used by MooBella to get started?
Some of the start-up funding included:
Saturn Asset Management$25 million in equity (2000-2005)
Inventages (Swiss venture firm)$15 million in 2007 and $18 million in 2009
Bruce Ginsberg$1 million
W Health LP$9 million (November 2010)
Debt$17.5 million in high-interest loans and convertible notes
4. What are the start-up costs that you would expect to encounter if you were a company that purchased a MooBella machine?
I would expect the cost of buying the machine itself, the supplies for the ice cream the machine dispenses, taxes, maintenance, if I buy multiple machines for different locations and hire people to refill and maintain them then employee wages, and debt if I cannot pay out of pocket.