G.A.E.M.S. Board Advisory Case Study | SproutVest

At a glance

Client: G.A.E.M.S.
Industry: Consumer Electronics / Gaming Hardware
Engagement: 12 months (2015–2016)
Services: Non-Executive Director, Finance Committee, CEO Search, Executive Compensation
Headline result: $15M in non-dilutive debt financing, a CEO placed, and governance frameworks established

Context

G.A.E.M.S. (Gaming and Entertainment Mobile Systems) makes ruggedized, travel-ready gaming monitors and enclosures for console gamers, sold through major retail channels including Amazon, Best Buy, and GameStop. As retail distribution expanded, the company needed board-level discipline to match its operational growth. SproutVest founder Erick Watson joined the board as Non-Executive Director, with responsibility spanning finance, executive hiring, and corporate governance.

The challenge

Scaling a hardware business through retail is a working capital problem before it is anything else. Inventory, manufacturing, and logistics all demanded cash ahead of revenue, and funding that expansion with equity would have meaningfully diluted the founders. At the same time, the company needed a CEO with retail hardware experience to lead the next phase, which meant running a structured search under board oversight, and a growing executive team needed formal compensation frameworks where informal arrangements had sufficed before.

What we did

As chair of the finance committee, SproutVest brought board-level financial oversight to a scaling hardware operation: cash flow planning, manufacturing cost analysis, and financial reporting controls appropriate to the company’s stage. The centerpiece of the capital work was structuring and closing $15M in debt financing for supply chain and manufacturing, deliberately choosing non-dilutive debt instruments so the founders kept their equity while the company got its working capital.

On the leadership side, we ran a structured CEO search, defining the role around retail hardware and consumer electronics experience, evaluating candidates, and leading the board deliberations through to a placement. We also designed the executive compensation framework, covering base compensation, performance incentives, and equity participation tied to growth milestones.

Results

Twelve months of board service left G.A.E.M.S. with the capital, leadership, and governance for its next phase of retail growth:

• $15M in non-dilutive debt financing closed, funding supply chain and manufacturing without founder dilution
• A CEO with retail hardware experience placed through a structured search
• Executive compensation and financial reporting frameworks established
• Manufacturing scaled and retail distribution expanded on the strengthened financial foundation

The work above starts with an honest read of the leadership behind it

The Trellis Leadership Diagnostic applies that discipline to how you run your company: 24 scored items across six dimensions, a written report with one 90-day priority, and a 90-minute debrief with Erick Watson. $2,500, fully creditable against coaching.

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