Publications
Publications
- October 2019 (Revised January 2020)
- HBS Case Collection
Dulcie Madden (A)—Growth or Exit?
By: Shikhar Ghosh, Christopher Payton and Shweta Bagai
Abstract
This is part of a three-case series that follows Dulcie Madden's journey as a founder over five years. Case (A) is about managing growth and cash flow; Case (B) is about the exit decision and conditions on a sale; Case (C) shows Madden dealing with adversity and the choice of “when to quit?” Rest Devices was an early stage company started by a team from MIT. Dulcie Madden decided to drop out of her MBA program at MIT to join Rest Devices as the CEO and use the innovative sensor technology to create a line of smart clothing for babies. A partnership with Babies “R” Us became a strong catalyst to growth but left Rest Devices increasingly constrained by additional capital requirements necessary to deliver the required number of units. As Madden tried to balance the need for capital with the business pressures of delivering a product for a nationwide rollout, she was faced with a series of strategic choices including an unsolicited acquisition offer, a lawsuit, failed financing, and tensions within the team.
Keywords
Entrepreneurial Management; Family; Family Conflicts; Founders' Agreements; Growth And Development; Hardware; VC; Scaling; Start-up; Female Ceo; Risk Assessment; Entrepreneurship; Growth Management; Equity; Cash Flow; Success; Failure; Acquisition; Business Model; Information Technology; Valuation; Family and Family Relationships; Information Infrastructure; Apparel and Accessories Industry; Technology Industry; United States
Citation
Ghosh, Shikhar, Christopher Payton, and Shweta Bagai. "Dulcie Madden (A)—Growth or Exit?" Harvard Business School Case 820-052, October 2019. (Revised January 2020.)