Chase Franklin

Just nine months after taking over the top job at Seattle-based Daptiv, CEO Chase Franklin announced today that he's stepping down. The former CEO of Qpass said he failed to attract financing as part of a larger plan to supercharge the 13-year-old maker of project management software and services.

"Unfortunately, we have just not been able to raise funding around that plan," said Franklin, who will remain on the board. "It is a tough funding environment ... and we fought the good fight there and ultimately have just not been successful in funding that new aggressive plan."

As a result of the restructuring, chief operating officer Mark Klebanoff is taking over as president and CEO. The company also is cutting its work force today by 15 percent, reducing staffing from 105 to 90 people. Despite the cutbacks, Klebanoff said the company remains healthy. It is profitable and growing, with recurring revenue expected to reach $20 million this year.

In fact, the reductions today bring Daptiv back to the employment levels it had before Franklin joined.

"Today, we pivot from what would have been an outside investment-funded growth plan to an organic or profit-driven growth plan," said Klebanoff, a former RealNetworks executive.

Franklin declined to comment on why the company encountered troubles on the financing trail. Klebanoff also declined to comment about whether the company will now look at selling out.

Though the venture capital market has been tough, later-stage companies which have achieved profitability in the software-as-a-service category have attracted attention from investors.

At the time of Franklin's appointment last September, the board expressed excitement to have the industry veteran on board.

"Attracting someone of his caliber and with his proven track record leading and growing software companies is a clear testament to Daptiv’s value today and in the future,” said Daptiv Chairman Kevin Hickey at the time.

Franklin said he made the decision to leave, adding that he was disappointed that he wasn't able to fund the growth strategy that he set out to implement.

"Everyone thought there was an opportunity to take this company and jump it up, and operate it at a higher level and grow in a different direction," he said. "We made a good attempt at that and ultimately just weren't able to raise money around that opportunity."

Daptiv, formerly known as eProject, has raised $30 million to date. It has undergone a series of executive changes and layoffs over the years.

The company's software is used by more than 500 organizations, including Frontier Airlines, Honeywell and Blue Cross/Blue Shield.

Franklin said he's not sure what he will do next, though he didn't rule out starting a new company. "I may found something, I don't know," he said. "But not for a couple of months at least."