Subject category:
Entrepreneurship
Published by:
INSEAD
Version: 07/2021
Length: 17 pages
Data source: Field research
Abstract
In March 2020, Tarek Kabrit, founder and CEO of Seez, the online car marketplace and aggregator, must determine how to proceed given the ongoing COVID-19 pandemic. His decision could make or break the company. It has secured USD6 million in funding from investors, closing a Series A round just before the pandemic hit, but the board is urging him to conserve cash to last through the uncertain times ahead by cutting salaries and headcount to reduce the burn rate and extend the company's runway. Tarek, in contrast, sees the pandemic as an opportunity to develop a sophisticated technological capacity that rivals lack, and a chance to review the business model. With revenues in decline, how can he ensure they pick up? Can he continue to work on multiple products in the hope of finding market fit and new lines of revenue, or focus on building just one?
About
Abstract
In March 2020, Tarek Kabrit, founder and CEO of Seez, the online car marketplace and aggregator, must determine how to proceed given the ongoing COVID-19 pandemic. His decision could make or break the company. It has secured USD6 million in funding from investors, closing a Series A round just before the pandemic hit, but the board is urging him to conserve cash to last through the uncertain times ahead by cutting salaries and headcount to reduce the burn rate and extend the company's runway. Tarek, in contrast, sees the pandemic as an opportunity to develop a sophisticated technological capacity that rivals lack, and a chance to review the business model. With revenues in decline, how can he ensure they pick up? Can he continue to work on multiple products in the hope of finding market fit and new lines of revenue, or focus on building just one?