Back to search

Pertinence - A Software Start-Up at a Crossroad

By Filipe Santos
Published 01 Mar 2006
Reference 5355
Topic Entrepreneurship
Industry Information Technology and Services
Region Europe
Length 10 page(s)
Inspection copy
6.00
Add to cart
Summary

This case traces the development of a French enterprise software venture and the transition from its founder to a professional CEO brought in by the venture capitalists. The company was about to miss its sales targets in 2003 by 70% and was running short of money. The new CEO was given three months to motivate the key people in the team and propose a strategic plan that would inspire the shareholders to offer a new round of financing.

Teaching objectives

The case can be used to discuss leadership issues in young ventures. It also allows for a discussion of effective sales and marketing functions for a new product. Finally, it leads to a discussion of different business models (consulting, enterprise software, mass-market software, and R&D teams) and the organizational arrangements that support them.

Keywords
  • AR2006
  • AR0506
  • RD0306
  • SOFTWARE INDUSTRY
  • BUSINESS MODEL
  • SALES STRATEGY
  • TRANSITION FROM FOUNDER TO CEO
  • START-UP TURNAROUND
  • VENTURE GROWTH
  • FRENCH START-UP
  • WOMAN CEO
About the author
Santos

Filipe Santos


Recommended Cases

Pro Rata Right or Wrong?

By  J. Neil Bearden
Add to cart
A start-up founder raises money from unsophisticated angel investors, and offers them the right to invest in future funding rounds (pro rata rights). Later, under pressure from a venture capitalist to minimize dilution, the founder deliberately does not remind the original angels of their opportunity to invest in the new funding round. She is not breaking any laws.
    View case

    Lernout & Hauspie Speech Products, NV: Financing from Start-up through IPO

    By  Herwig Langohr,  Benoit Leleux,  Danny Lein
    Add to cart award
    This case provides a unique illustration of how a high-tech European new venture starts-up, grows, burns cash, stumbles, adapts, captures value, disappoints, survives on the verge of bankruptcy to eventually achieve in the fall of 1995 among the most successful IPOs on NASDAQ. On 27 November 1995, L&H received an IPO pricing proposal of H and Q at the low end of the pricing range, after L and
      View case

      Société Nationale Maritime Corse Méditerranée (SNCM): Sink or Sail?

      By  Joost de Haas,  Esther Val,  Anne-Marie Carrick
      Add to cart
      The case describes how a loss-making ferry company was brought back to financial health, modernised and recapitalised in less than two years, amidst a context of political pressure, stakeholder hostility and a €600 million fine from the European Union. The Société Nationale Maritime Corse Méditerranée (SNCM) was sinking under the weight of French blockades and belligerent unions.
        View case