Amazing episode between Harry Stebbings @HarryStebbings and Katrina Lake @kmlake. You should definitely check this out:

https://podcasts.apple.com/us/podcast/twenty-minute-vc-venture-capital-startup-funding-pitch/id958230465?i=1000501186051

Some interesting tidbits >>

1) Unlike most startups who have gone public, @stitchfix raised less than $50m which is incredibly cash efficient.

2) This was largely out of necessity as it was really challenging for Katrina to get vc funding.

On the flipside, it really forced her to be disciplined about paying attention to the unit economics of the business.

3) When asked about favoring growth vs profitability, Katrina’s answer was to first pay attention to whether the unit economics even work and if it does, then you should pick growth.

4) They also discuss about how overlooked founders often don’t get access to as much capital and how this can really harm the startup ecosystem and businesses.

This topic shows up regarding fundraising as well as in discussing company culture.

5) At SFIX, everyone has to go through the experience of styling a fix even if you are not going to be a stylist. And all of these jobs are remote.

This is so that way everyone can understand the crux of the business and the customer.

6) To date, the co has generated over $6 billion in apparel sales, and they have aspirations to go beyond clothing... (Or at least that’s what I read between the lines…)

Their algorithms know how to pick clothing better than anyone.

7) As a sidenote, (this is not in the podcast but my own thoughts) the mkt cap for SFIX is < $4B.

This year, I believe, they have done $1.5B in subscription rev. Their data will only make them better and better.

Anyone else think they are one of the most undervalued cos?

8) (also this is not financial advice! I don’t have a background in public stocks!)

it’s just a pondering...

9) Anyway, continuing on, one of the best experiences Katrina got before she took her company public was serving on the Board of another public company GrubHub.

This seems like a great way to get experience in learning how to manage a public co.

10) SFIX had market pull from day 1. They didn’t have to do much paid marketing.

This helped w their unit economics.

11) They were also relentlessly focused on cash flow since they couldn’t raise much. They spent time negotiating payment terms w suppliers.

They also got to 6 warehouse turns per year while most retailers only get 4 turns per yr. they move product way faster than most.

12) Cash is king so even if you’re unit economics are good, you still have to make sure your cash isn’t tied up in inventory or have a long payback cycle.

13) tl;dr they cover a lot of great topics - highly recommend a listen