Case | HBS Case Collection | October 2002 (Revised December 2003)

Collabrys, Inc. (A)-The Evolution of a Startup

by Dorothy A. Leonard and Brian DeLacey

Abstract

The CEO of a two-year-old start-up must now decide whether to become a technology provider or a service agency. In a time of enormous uncertainty about the viability of various business models for Internet-delivered services and products, Collabrys has survived the burst Internet bubble by partnering with brand-name large companies and by responding to market feedback. This case traces the company from its earliest days and its original value proposition to a point at which the two very different future strategies appear feasible. Originally funded by venture capital, the company has changed key personnel, experimented with different distribution and partnering schemes, developed some sophisticated intellectual property, and raised a second round of funding.

Keywords: Risk and Uncertainty; Internet; Corporate Entrepreneurship; Corporate Strategy; Technological Innovation; Cost vs Benefits; Partners and Partnerships; Business Growth and Maturation; Business Startups; Corporate Finance; United States;

Citation:

Leonard, Dorothy A., and Brian DeLacey. "Collabrys, Inc. (A)-The Evolution of a Startup." Harvard Business School Case 603-064, October 2002. (Revised December 2003.)