Publications
Publications
- January 2024 (Revised May 2024)
- HBS Case Collection
Runa
By: Paul Gompers and Carla Larangeira
Abstract
In early 2022, Courtney McColgan, founder and CEO of Runa, a human resources and payroll Software-as-a-Service platform, faced an unexpected tech market downturn. Founded in 2018, Runa catered to small and medium-sized businesses in Mexico, offering an affordable and easy-to-use cloud-based solution. McColgan, a serial entrepreneur from Southern California, firmly believed the platform could disrupt Mexico's vast industry, and become a billion-dollar business. After an initial period of rapid growth during its first 18 months of operations, and amidst hiring a new executive team, Runa’s growth began to falter as attracting new clients became increasingly hard, and customer acquisition costs increased. In August 2021, Runa raised more funds amidst an unprecedented expansion in venture capital investment in Latin America, and it deployed additional marketing strategies and developed new products to entice customers. However, by early 2022, the venture scenario grew gloomier, and tech companies began to take cautionary measures. How should Runa adapt to a potentially more limited funding scenario and perhaps even less favorable growth prospects in the short run? Would dramatic structural and strategic changes be needed? Or should McColgan consider shutting down her business and create a new venture?
Keywords
Business Startups; Volatility; Entrepreneurship; Decision Making; Leadership; Management; Venture Capital; Organizational Change and Adaptation; Business Growth and Maturation; Latin America
Citation
Gompers, Paul, and Carla Larangeira. "Runa." Harvard Business School Case 224-047, January 2024. (Revised May 2024.)