Changes at Bungee Labs
While it’s not surprising to see such an announcement from one of the (now) many entrants into the Platform as a Service (PaaS) space, it is fairly shocking to see such a deep cut within 6 months of securing a substantial late round investment. A number of questions arise:
- Does this event foreshadow a fairly rapid consolidation in the PaaS provider space?
- Is this simply a matter of Bungee battening the hatches in anticipation for rough economic waters?
- Are VCs becoming ultra-conservative and mandating significant reductions in burn rate?
- Is Bungee simply not strong enough to survive? How long will that $8 million last?
- What is the best outcome for the PaaS market? Bungee leaving the market? Bungee being absorbed by a more traditional play with deeper pockets? Bungee righting the ship and scrapping for the #3 or #4 position in the market behind Force.com and Coghead?
Boy did we get #5 wrong. The only leadership position Coghead took was to the deadpool.