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  • October 2019 (Revised January 2020)
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Dulcie Madden (A)—Growth or Exit?

By: Shikhar Ghosh, Christopher Payton and Shweta Bagai
  • Format:Print
  • | Language:English
  • | Pages:12
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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.)
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About The Author

Shikhar Ghosh

Entrepreneurial Management
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Related Work

    • October 2019
    • Faculty Research

    Dulcie Madden (A), (B), (C)

    By: Shikhar Ghosh and Shweta Bagai
    • October 2019 (Revised January 2020)
    • Faculty Research

    Dulcie Madden (B)—A Difficult Choice

    By: Shikhar Ghosh and Shweta Bagai
    • October 2019 (Revised January 2020)
    • Faculty Research

    Dulcie Madden (C)—A Final Chance?

    By: Shikhar Ghosh and Shweta Bagai
    • October 2019
    • Faculty Research

    Dulcie Madden (A)—Growth or Exit? Exercise on Cash Flows

    By: Shikhar Ghosh
    • October 2019 (Revised January 2020)
    • Faculty Research

    Dulcie Madden (A)—Growth or Exit?

    By: Shikhar Ghosh, Christopher Payton and Shweta Bagai
Related Work
  • Dulcie Madden (A), (B), (C) By: Shikhar Ghosh and Shweta Bagai
  • Dulcie Madden (B)—A Difficult Choice By: Shikhar Ghosh and Shweta Bagai
  • Dulcie Madden (C)—A Final Chance? By: Shikhar Ghosh and Shweta Bagai
  • Dulcie Madden (A)—Growth or Exit? Exercise on Cash Flows By: Shikhar Ghosh
  • Dulcie Madden (A)—Growth or Exit? By: Shikhar Ghosh, Christopher Payton and Shweta Bagai
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