SAN FRANCISCO — When Jeremy Hitchcock raised money for his technology start-up in 2012, he barely had to break a sweat. He was flooded with emails from venture capitalists who wanted in. Two months after meeting an investor over cocktails at a technology conference, he scored $38 million.
But last year, as valuations of tech start-ups wobbled and public tech stocks gyrated, Mr. Hitchcock, 34, was faced with a different dynamic. As he tried to garner new capital for his company Dyn, which monitors and reroutes Internet traffic, potential investors peppered him with questions others had once glossed over. How would Dyn produce a return for them? Did Dyn have the size and scale to go public?
Dyn announced this month that it had raised $50 million from a private equity firm. But as part of the discussion, Mr. Hitchcock, who has not run a public company, agreed to step down as chief executive so Dyn could find a leader skilled in developing a business.
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