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martyb writes:

Docker is in Deep Trouble:

Docker, the technology, is the poster child for containers. But it appears Docker, the business, is in trouble. In a leaked memo, Docker CEO Rob Bearden praised workers -- despite the "uncertainty [which] brings with it significant challenges" and "persevering in spite of the lack of clarity we've had these past few weeks."

Lack of clarity about what? Sources close to the company say it's simple: Docker needs more money.

Indeed, Bearden opened by saying: "We have been engaging with investors to secure more financing to continue to execute on our strategy. I wanted to share a quick update on where we stand. We are currently in active negotiations with two investors and are working through final terms. We should be able to provide you a more complete update within the next couple of weeks."

Docker has already raised $272.9 million, but the company hasn't been profitable. It's[sic] venture-capitalist supporters -- ME Cloud Ventures, Benchmark, Coatue Management, Goldman Sachs, and Greylock Partners -- which have seen it through Series E financing, can't be happy, that after almost six-years, Docker still isn't close to an IPO.

While the previous CEO, Steve Singh, promised in May 2019 that Docker would be cash-flow positive by the end of this fiscal year, that appears not to have been the case. Otherwise, Docker wouldn't need to seek additional capital.

Original Submission