Tech Roads, Incorporated

In early 2007, Tech Roads management was assessing its financial needs for the coming year. A seven-year-old company started in Silicon Valley, Tech Roads was an online business-to-business used vehicle marketplace that focused on the wholesale used car industry. The company carried almost zero debt and, following a recent merger with a competitor, management hoped they were headed toward significant growth and general adoption of their online platform. Questions before them included: what sales growth was achievable with and without additional capital? If they did go outside for funding, what source was best? Should they instead slow down their growth rate and delay profitability?