Mercado

Corey Leibow eased his car back on Sand Hill Road in Palo Alto, California. As President and CEO of Mercado, a company that provided the search and merchandising technology to power retail websites, he had just with a different venture capital (VC) firms in an effort to a $ 26 million Series E round of funding met to increase. It was currently offered in June 2008 and Mercado both on-premise and on-demand or “software as a service (SaaS)” versions of their applications. Despite the fact that the income from … Read more »

Corey Leibow eased his car back on Sand Hill Road in Palo Alto, California. As President and CEO of Mercado, a company that provided the search and merchandising technology to power retail websites, he had just with a different venture capital (VC) firms in an effort to a $ 26 million Series E round of funding met to increase. It was currently offered in June 2008 and Mercado both on-premise and on-demand or “software as a service (SaaS)” versions of their applications. Despite the fact that the revenue was projected from two solutions to grow more than 80 percent this year, found that investors generally Leibow pushed on the company’s hybrid approach to distribution. Some VCs Mercado wanted to focus solely on its traditional enterprise applications on a perpetual, on-premise license model is based. Other investors preferred Mercado mutated pure SaaS companies to watch. Leibow knew he quickly come to a decision to increase the capital had had the company, but he wondered if it was possible to pursue both angles. Significantly affect the choice he made would Mercado the sales and R & D team as well as what the company targeted customers and how it would be to win and keep.
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from
Bethany Coates,
Mark Leslie,
James Lattin
Source: Stanford Graduate School of Business
21 pages.
Release Date: 10 July 2008. Prod #: E296-PDF-ENG
Mercado HBR case solution