This FocusCase is about a young VC-backed technology company in the UK, trying to turn around from a near-death crisis after their market didn't pick up. The company Argo Interactive focused, with their innovative software product, on the recently emergent WAP-marketplace.
Nonetheless, after burning through 14 million pound sterling of venture capital, the marketplace had not shown any signs of life, along with the senior management team needed to make an urgent decision on the best way to continue. After their main investors had discovered about this news and about management's plans to make significant changes, they invoked a material adverse change clause, keeping the company from drowning any additional cash down from the previous round.
Would the best alternative be to shut down the business instantaneously or should the management team attempt to turn the company around? If determining for the latter, which choices should they take with respect to financing, market focus, product (re-)development, HR problems, positioning as well as the total survival strategy of the business?
PUBLICATION DATE: January 12, 2011 PRODUCT #: IES476-HCB-ENG
This is just an excerpt. This case is about INNOVATION & ENTREPRENEURSHIP
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