Business Case Studies & Business Publications

BioBag Australia: Evaluating Green Growt...

Kaufmann, Lauren, ...

Case

BioBag Australia: Evaluating Green Growth Capital Opportunities

Kaufmann, Lauren; Dodd, Tracey; Maiden, Stephen E.

E-0510 | Published October 24, 2024 | 11 pages Case

Collection: Darden School of Business

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In June 2018, Scott Morton, managing director of BioBag World Australia Pty Ltd (BioBag Australia), had a decision to make. The Chinese government had recently implemented harsher restrictions on the import of plastic waste, creating worldwide demand for recycling solutions and spurring the creation of eco-friendly start-ups. With this momentum behind him, Morton believed the timing was right to launch BioBag Australia, which would introduce the BioBag—a compostable and biodegradable bag made from renewable resources—and other sustainable products to the Australian market. However, Morton needed funding to enter the market, and he faced two possible paths forward: raise AUD300,000 in capital, which would include applying for a grant from the South Australian government, or try for a much larger AUD10 million raise. Morton saw pros and cons for both approaches, and since the BioBag was a completely new product to the Australian market, the true demand for it was still largely unknown. What should Morton do? At the University of Virginia Darden School of Business, this case is used in the second-year “Managing Social Impact” course. It would also be suitable in courses covering strategy, sustainability, impact investing, project management, and ethics.