Otolith Labs could use some revenue at this point, but it will need more time to secure FDA approval as a medical device. In its fourth year, Otolith Labs is still a year away from generating revenue. Once the company is FDA approved, it may be acquired. The device also has market potential in the consumer arena. Otolith Labs can move much more quickly with a consumer-oriented partner such as Sony or Oculus, who could integrate their technology into headphones or cars. Taking this path might lead CEO Owen and his team to license or even sell the technology to a consumer-oriented company.
UrbanStems is a young company very focused on growing their revenues and margins. Whether they are raising capital from investors or evaluating where to make their next significant investment, they face decisions about whether to invest in marketing (a perennial favorite, as it generates revenue directly) or in Information Technology (which may be less glamorous, but over time can lead to higher margins and lower labor costs on the supply chain side of the business).
What factors should UrbanStems consider regarding acceptance or rejection of new projects? Should they invest in marketing or technology?