BladeLogic, a high flyer in the large and growing market of software for data center automation, have reached a critical point. The company, which has already received two rounds of venture capital financing and closing deals with dozens of blue-chip companies seem to be moving in the right direction. Revenue, however, becomes more difficult to predict. As CEO, leader Dev Ittycheria was based entirely on his ability to perform in the harsh, high-stakes environment. Monthly meetings of boards are becoming more tense; BladeLogic is vulnerable to missing their revenue projections, if one or two of the "big" deals came through at the end of each quarter. With less than twelve months of cash left at the current rate burn firm, Dev knew that they were going to need another round of capital, well ahead of schedule. Of the investors were in no mood to put more money in a higher score, so the company is faced with the very real prospect of down round. Dev knew that they had to obtain additional capital quickly, but it could provide a new round of funding without existing investors? At what price will be the current investors to participate? "Hide
by Jennifer Walske, Andrew Zacharakis, Carl Hedberg Source: Babson College 12 pages. Publication Date: January 1, 2007. Prod. #: BAB153-PDF-ENG
