

It’s not looking great for ride-hailing giant Uber (NYSE: UBER). Today, Uber closed its second day of trading down more than 18.8% from its IPO price at $37.25 per share, with a market cap of $62.2 billion.
Uber, which was previously valued at $72 billion by venture capitalists on the private market, priced its stock at $45 a share for an $82.4 billion valuation last week. On day one, Uber closed at $41.57 a share.
In a memo obtained by CNBC, Uber CEO Dara Khosrowshahi told employees today that, “like all periods of transition, there are ups and downs. Obviously, our stock did not trade as well as we had hoped post-IPO. Today is another tough day in the market, and I expect the same as it relates to our stock.”
Moving forward, Khosrowshahi urged employees to focus on the long-term. He also pointed to the comebacks both Facebook and Amazon made post-IPO.
Lyft has similarly suffered on the public market since its IPO in March. Lyft closed the day at $48.15, with a market cap of $13.8 billion.
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In this section of my exploration into innovation in inclusive housing, I am digging into the 200+ companies impacting the key phases of developing and managing housing.
Innovations have reduced costs in the most expensive phases of the housing development and management process. I explore innovations in each of these phases, including construction, land, regulatory, financing, and operational costs.
This is one of the top three challenges developers face, exacerbated by rising building material costs and labor shortages.
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Housing is big money. The industry has trillions under management and hundreds of billions under development.
And investors have noticed the potential. Opendoor raised nearly $1.3 billion to help homeowners buy and sell houses more quickly. Katerra raised $1.2 billion to optimize building development and construction, and Compass raised the same amount to help brokers sell real estate better. Even Amazon and Airbnb have entered the fray with high-profile investments.
Amidst this frenetic growth is the seed of the next wave of innovation in the sector. The housing industry — and its affordability problem — is only likely to balloon. By 2030, 84% of the population of developed countries will live in cities.
Yet innovation in housing lags compared to other industries. In construction, a major aspect of housing development, players spend less than 1% of their revenues on research and development. Technology companies, like the Amazons of the world, spend nearly 10% on average.
Innovations in older, highly regulated industries, like housing and real estate, are part of what Steve Case calls the “third wave” of technology. VCs like Case’s Revolution Fund and the SoftBank Vision Fund are investing billions into what they believe is the future.
These innovations are far from silver bullets, especially if they lack involvement from underrepresented communities, avoid policy and ignore distributive questions about who gets to benefit from more housing.
Yet there are hundreds of interventions reworking housing that cannot be ignored. To help entrepreneurs, investors and job seekers interested in creating better housing, I mapped these innovations in this package of articles.
To make sense of this broad field, I categorize innovations into two main groups, which I detail in two separate pieces on Extra Crunch. The first (Part 1) identifies the key phases of developing and managing housing. The second (Part 2) section identifies interventions that contribute to housing inclusion more generally, such as efforts to pair housing with transit, small business creation and mental rehabilitation.
Unfortunately, many of these tools don’t guarantee more affordability. Lowering acquisition costs, for instance, doesn’t mean that renters or homeowners will necessarily benefit from those savings. As a result, some tools likely need to be paired with others to ensure cost savings that benefit end users — and promote long-term affordability. I detail efforts here so that mission-driven advocates as well as startup founders can adopt them for their own efforts.
Today:
Coming Tomorrow:
Please feel free to let me know what else is exciting by adding a note to your LinkedIn invite here.
If you’re excited about this topic, feel free to subscribe to my future of inclusive housing newsletter by viewing a past issue here.
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Spotify is testing its own version of Stories — the sharing format popularized by social apps like Snapchat and Instagram that has since made its way to other apps like Facebook, YouTube, WhatsApp and others. In Spotify’s case, it’s not called “Stories” but rather “Storyline,” and the focus is on allowing artists to share their own insights, inspiration, details about their creative process or other meanings behind the music.
This is very much similar to what Spotify’s “Behind the Lyrics” feature today offers. But instead of pop-up cards that load in time with the music, Spotify Storyline is very much a Stories-like experience, where users tap through the different screens at their own pace, and where horizontal lines at the top indicate how many screens still await them ahead.
@spotify hi. for about a yr now my band’s mgmt has tried get yall to take down some… outdated… facts on behind the lyrics for our song “Hard Times”.
the facts are: it’s all embarrassing & there was no “bright side”… hence the title, Hard Times.
thank you & goodnight.— hayley from Paramore (@yelyahwilliams) April 24, 2019
By comparison, “Behind the Lyrics” pulls in this sort of background information from Spotify’s partner, Genius — and Genius doesn’t always get things right. This, in fact, was the cause of a bit of an uproar recently, when Paramore singer Hayley Williams took to Twitter to yell at Spotify for running “outdated facts” on “Behind the Lyrics” — something she said her management team had tried to get changed for a year.
After her tweet went viral, Genius reached out to help. But following the incident, music fans pointed out other inaccuracies in “Behind the Lyrics,” including misstated facts on 21 Pilots’ song “Jumpsuit” and Travis Scott’s “Yosemite,” for example.
For Spotify, one possible solution to this problem could be to allow artists and their management teams to take control over what’s displayed as the song plays — while adopting the popular Stories format in the process. But at present, the Storyline feature is appearing on top of “Behind the Lyrics,” which is a bit odd and confusing.
We understand that Storyline is only a test for the time being on both iOS and Android, but not desktop. It’s available in the U.S. and in other markets, but Spotify isn’t commenting as to who may be seeing the test at this time or where.
If you are a part of the test group, you’ll see an indicator on the bottom of the screen that alerts you to the additional content. You can then swipe up anywhere on the screen that’s not a button in order to reveal the story and start tapping. The stories may contain lyrics, text or images.
For the time being, there’s no direct way for any artist or management team to contribute to Storyline. Those involved are working with Spotify directly. But it wouldn’t be unreasonable to think that the feature could be something that’s built into the Spotify Artist Dashboard in the future, if it proved to deliver the sort of positive engagement Spotify hopes to see.
The feature, if launched, would give Spotify its own sort of original content — an area that hadn’t fared so well in the past when Spotify was producing its own original videos, for example. And it would better cater to Spotify’s younger demographic who already understand and regularly use Stories in other social apps.
Android Police was first to spot the news (via Reddit), and found it was live on a handful of songs, including Jonas Brothers’ “Sucker” and several by Billie Eilish (“Bad Guy,” “Bury a Friend,” “When the Party’s Over,” “Wish You Were Gay”). We also understand it’s showing up on MAX’s “Love Me Less.” Plus, Reddit users claim to have seen on it 2 Chainz’ “Forgiven,” The Beaches’ “Snake Tongue,” and others.
Spotify confirmed in a brief statement to TechCrunch it’s testing Storyline.
“We are always testing new ways to create better experiences for more users,” a spokesperson said, when asked about the feature. The company didn’t offer any information about when it would roll out more broadly.
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Slack this morning disclosed estimated preliminary financial results for the first quarter of 2019 ahead of a direct listing planned for June 20.
Citing an addition of paid customers, the workplace messaging service posted revenues of about $134 million, up 66% from $81 million in the first quarter of 2018. Losses from operations increased from $26 million in Q1 2018 to roughly $39 million this year.
In addition to filing updated paperwork, the Slack executive team gathered on Monday to make a final pitch to potential shareholders, emphasizing its goal of replacing email within enterprises across the world.
“People deserve to do the best work of their lives,” Slack co-founder and chief executive officer Stewart Butterfield said in a video released alongside a live stream of its investor day event. “This desire of feeling aligned with your team, of removing confusion, of getting clarity; the desire for support in doing the best work of your life, that’s universal, that’s deeply human. It appeals to people with all kinds of roles, in all kinds of industries, at all scales of organization and all cultures.”
“We believe that whoever is able to unlock that potential for people … is going to be the most important software company in the world. We aim to be that company,” he added.”
Slack, valued at more than $7 billion with its last round of venture capital funding, plans to list on the NYSE under the ticker symbol “SK.”
The business filed to go public in April as other well-known tech companies were finalizing their initial public offerings. Following Uber’s disastrous IPO last week, public and private market investors alike will be keeping a close-eye on Slack’s stock market performance, which may determine Wall Street’s future appetite for Silicon Valley’s unicorns.
Though some of the recent tech IPOs performed famously, like Zoom, Uber and Lyft’s performance has served as a cautionary tale for going out in poor market conditions with lofty valuations. Uber began trading last week at below its IPO price of $45 and is today down significantly at just $36 per share. Lyft, for its part, is selling for $47.5 apiece today after pricing at $72 per share in March.
Slack isn’t losing billions per year like Uber, but it’s also not as close to profitability as expected. In the year ending January 31, 2019, Slack posted a net loss of $138.9 million and revenue of $400.6 million. That’s compared to a loss of $140.1 million on revenue of $220.5 million for the year ending January 31, 2018. In its S-1, the company attributed its losses to scaling the business and capitalizing on its market opportunity.
Workplace messaging startup Slack said Monday, February 4, 2019 it had filed a confidential registration for an initial public offering, becoming the latest of a group of richly valued tech enterprises to look to Wall Street. (Photo by Eric BARADAT / AFP) (Photo credit should read ERIC BARADAT/AFP/Getty Images)
Slack currently boasts more than 10 million daily active users across more than 600,000 organizations — 88,000 on the paid plan and 550,000 on the free plan.
Slack has been able to bypass the traditional roadshow process expected of an IPO-ready business, opting for a path to Wall Street popularized by Spotify in 2018. The company plans to complete in mid-June a direct listing, which allows companies to forgo issuing new shares and instead sell directly to the market existing shares held by insiders, employees and investors. The date, however, is subject to change.
Slack has previously raised a total of $1.2 billion in funding from investors, including Accel, Andreessen Horowitz, Social Capital, SoftBank, Google Ventures and Kleiner Perkins.
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Mailchimp, a bootstrapped startup out of Atlanta, Ga., is known best as a popular tool for organizations to manage their customer-facing email activities — a profitable business that its CEO told TechCrunch has now grown to around 11 million active customers with a total audience of 4 billion (yes, 4 billion), and is on track for $700 million in revenue in 2019. (Note: Slack’s previous quarter was around $133 million, and it’s operating at a loss.)
To help hit that number, Mailchimp is taking the wraps off a significant update aimed at catapulting it into the next level of business services. Starting today, Mailchimp will start to offer a full marketing platform aimed at smaller organizations.
Going beyond the email services that it has been offering for 20 years — which alone has led to multiple acquisition offers (all rebuffed) as its valuation has crept up reportedly into the billions (depending on which multiple you use) — the new platform will feature a number of new products within it.
They include technology to record and track customer leads; the ability to purchase domains and build sites; ad retargeting on Facebook and Instagram; social media management. It will also offer business intelligence that leverages a new move into the artificial intelligence to provide recommendations to users on how and when to market to whom.
The latter of these will be particularly interesting considering the data that it has collected and will collect on 4 billion individuals and their responses to emails and other services that Mailchimp now offers.
As of Wednesday of this week, Mailchimp also plans a pretty significant shift of its pricing into four tiers of free, $9.99/month, $14.99/month or $299/month (up from the current pricing of free, $10/month, $199/month) — with those fees scaling depending on usage and features.
(Existing paid customers maintain current pricing structure and features for the time being and can move to the new packages at any time, the company said. New customers will sign up to the new pricing starting May 15.)
The expansion is part of a longer-term strategic play to widen Mailchimp’s scope by building more services for the typically underserved but collectively large small-business segment.
Even as multinationals like Amazon and other large companies continue to feel like they are eating up the mom-and-pop independent business model, SMBs continue to make up 48% of the GDP in the U.S.
And within the SMB sector, the opportunity has totally changed with the rise of the internet.
“What’s really key is the role digital apps, digital publishing and social media have played,” said Ben Chestnut, Mailchimp’s co-founder and CEO. “We can have a 10-employee company with a customer base bigger than 1 million. That’s a combination you couldn’t achieve before the growth of online.”
And within that, marketing is one of those areas that small businesses might not have invested in much traditionally but are increasingly turning to as so much transactional activity has moved to digital platforms — be it smartphones, computers, or just the tech that powers the TV you watch or music you listen to.
In March, we reported that Mailchimp quietly acquired a small Shopify competitor called LemonStand to start to build more e-commerce tools for its users. And the new marketing platform is the next step in that strategy.
“We still see a big need for small businesses to have something like this,” Chestnut said in an interview. Enterprises have a range of options when it comes to marketing tools, he added, “but small businesses don’t.” The mantra for many building tech for the SMB sector has traditionally been “dumbed down and cheap,” in his words. “We agreed that cheap was good, but not dumbed down. We want to empower them.”
The new services launch also comes at a time when an increasing number of companies are closing in on the small business opportunity, with e-commerce companies like Square, Shopify and PayPal also widening their portfolio of products. (These days, Square is a Mailchimp partner, Shopify is not.)
Marketing is something that Mailchimp had already been dabbling with over the last two years — indeed, customer-facing email services is essentially a form of marketing, too. Other launches have included a Postcards service, offering companies very simple landing pages online (about 10% of Mailchimp’s customers do not have their own web sites, Chestnut said), and a tool for companies to create Google, Facebook and Instagram ads.
Mailchimp itself has a big marketing presence already: it says that daily, more than 1.25 million e-commerce orders are generated through Mailchimp campaigns; over 450 million e-commerce orders were made through Mailchimp campaigns in 2018; and its customers have sold over $250 million in goods through multivariate + A/B campaigns run through Mailchimp.
There are clearly a lot of others vying to be the go-to platform for small businesses to do their business — “Google, Facebook, a lot of the big players see the magic and are moving to the space more and more,” Chestnut said — but Mailchimp’s unique selling point — or so it hopes — is that it’s the platform that has no vested interests in other business areas, and will therefore be as focused as the small businesses themselves are. That includes, for example, no upcharging regardless of the platform where you choose to run a campaign.
“We are Switzerland,” Chestnut said.
Given that Mailchimp took 20 years to grow into marketing from email, it’s not clear what the wait will be for future expansions, and into which areas those might go. Surprisingly, one product that Mailchimp does not want to touch for now is CRM. “No plans for CRM services,” Chestnut said. “We are focused on consumer brands. We think about small organizations, with fewer than 100 employees.”
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In a carefully framed deal, ServiceNow announced this morning that it has acquired the intellectual property and key personnel of mobile analytics company Appsee for an undisclosed price. Under the terms of the deal, the co-founders and R&D team will be joining ServiceNow after the deal closes.
It’s worth noting that ServiceNow did not acquire Appsee’s customers, and the company is expected to wind down its existing business over the next 12 months.
Appsee provides more than pure numerical analytics. As the name it implies, it lets developers see what the user is seeing by recording an interaction and seeing what went right or wrong as the person used the program.
GIF courtesy of Appsee
ServiceNow wants to take that functionality and incorporate it into its Now Platform, which enables customers to create customized service applications for their businesses, or use mobile applications it has created out of the box.
The company sees this as a way to improve the UI and build more usable apps. “We’ll be able to use Appsee for our mobile app and browser analytics. This can be used across all three of our workflows, and with this level of visibility our customers will be able to see how customers or employees are engaging [with the application]. With these analytics, ServiceNow will be able to provide insights on user behavior. In turn, this will help us provide an improved UI for customers,” a company spokesperson told TechCrunch.
Just last week at its Knowledge 19 customer conference in Las Vegas, the company announced Now Mobile, a new tool for performing tasks like ordering a new laptop or searching for the holiday calendar, and a mobile on-boarding tool for new employees. Both of these will be available in the company’s next release and could benefit from the Appsee functionality to improve the overall design of these products after it releases them to users.
Appsee has always been focused on capturing user activity. Over the years it has layered on more traditional analytics like DAUs (daily active users) and crash rates, the kind of metrics that can give companies insight into their user experience, but they combine that with the visual record to help see more detail about exactly what was happening, along with myriad other features, all of which will be incorporated into the ServiceNow platform moving forward.
The deal is expected to close by the end of Q2 2019.
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Locus, an Indian startup that uses AI to help businesses map out their logistics, has raised $22 million in Series B funding to expand its operations in international markets.
The financing round for the four-year-old startup was led by Falcon Edge Capital and Tiger Global. Existing investors Exfinity Venture Partners and Blume Ventures also participated in the round. The startup has raised $29 million to date, Nishith Rastogi, co-founder and CEO of Locus, told TechCrunch in an interview.
Locus works with companies that operate in FMCG, logistics and e-commerce spaces. Some of its clients include Tata Group companies, Myntra, BigBasket, Lenskart and Bluedart. It helps these clients automate their logistics workload — tasks such as planning, organizing, transporting and tracking of inventories, and finding the best path to reach a destination — that have traditionally required intensive human labor.
“Say a Lenskart representative is visiting a house or an office to offer an eye checkup, and suddenly two more people there are interested in getting their eyes checked. The representative could attend these two new potential clients, or wrap things up with the first client and take care of his or her next appointment,” said Rastogi.
Locus looks at a client’s past data, identifies patterns and automates these kind of decisions on a large scale. In an example shared earlier with TechCrunch, Rastogi talked about how Locus had built a scanner for e-commerce companies for measuring products.
Rastogi said he will use the fresh capital to develop products and expand Locus in Southeast Asian and North American markets. The startup says half of its 110-person workforce is outside of India. Half of the IP it has built and the revenue it generates comes from its team outside of India.
He said the startup has spent the recent quarters studying these international markets, and has secured some anchor clients to expand the business. Locus is operationally profitable already and any additional capital goes into expanding its business, he added.
The logistics market in India has long been riddled with challenges. A growing number of startups, including BlackBuck — which raised $150 million last week — have emerged in recent years to tackle these problems.
The new funding also illustrates Tiger Global’s new strategy for the Indian market. The VC fund, which has invested in B2C businesses Flipkart and Ola in India, has made a number of investments in B2B startups in recent months. Last month, it invested $90 million in agritech supply chain startup Ninjacart, and weeks later, it gave cloud-based solutions provider Zenoti $50 million. It also participated in customer marketing service ClearTap’s $26 million round.
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Indian video streaming giant Hotstar, owned by Disney, today set a new global benchmark for the number of people an OTT service can draw to a live event.
Some 18.6 million users simultaneously tuned into Hotstar’s website and app to watch the deciding game of the 12th edition of the Indian Premier League (IPL) cricket tournament. The streaming giant, which competes with Netflix and Amazon in India, broke its own “global best” 10.3 million concurrent views milestone that it had set last year.
Hotstar topped the 10 million concurrent viewership mark a number of times during this year’s 51-day IPL season. More than 12.7 million viewers huddled to watch an earlier game in the tournament (between Royal Challengers Bangalore and Mumbai Indians), a spokesperson for the four-year-old service said. In mid-April, Hotstar said that the cricket series had already garnered a 267 million overall viewership, creating a new record for the streamer. (Last year’s IPL had clocked a 202 million overall viewership.)
Fans of Mumbai Indians celebrate their team’s victory against Chennai Super Kings in IPL cricket tournament in India.
These figures coming out of India, the fastest-growing internet market, are astounding to say the least. In comparison, a 2012 live stream of skydiver Felix Baumgartner jumping from near-space to the Earth’s surface, remains the most concurrently viewed video on YouTube. It amassed about 8 million concurrent viewers. The live viewership of the royal wedding between Prince Harry and Meghan Markle was also a blip in comparison.
As Netflix and Amazon scramble to find the right content strategy to lure Indians, Hotstar and its local parent firm Star India have aggressively focused on securing broadcast and streaming rights to various cricket series. Cricket is almost followed like a religion in India.
In 2017, Star India, then owned by 21st Century Fox, secured the rights to broadcast and stream the IPL cricket tournament for five years for a sum of roughly $2.5 billion. Facebook had also participated in the bidding, offering north of $600 million for streaming. (Star India was part of 21st Century Fox’s business that Disney acquired for $71.3 billion earlier this year.)
That bet has largely paid off. Hotstar said last month that its service has amassed 300 million monthly active users, up from 150 million it had reported last year. In comparison, both Netflix and Amazon Prime Video have less than 30 million subscribers in India, according to industry estimates.
In the last two years, Hotstar has expanded to three international markets — the U.S., Canada, and most recently, the UK — to chase new audiences. The streaming service is hoping to attract Indians living overseas and anyone else who is interested in Bollywood movies and cricket, Ipsita Dasgupta, president of Hotstar’s international operations, told TechCrunch in an interview.
The streaming service plans to enter Sri Lanka, Pakistan, Nepal, Middle East, Australia, and New Zealand in the next few quarters, Dasgupta said.
That’s not to say that Hotstar has a clear path ahead. According to several estimates, the streaming service typically sees a sharp decline in its user base after the conclusion of an IPL season. Despite the massive engagement it generates, it remains operationally unprofitable, people familiar with Hotstar’s finances said.
The ad-supported streaming service offers about 80 percent of its content catalog — which includes titles produced by Star India, and shows and movies syndicated from international partners HBO, ABC, and Showtime among others — for no cost to users. One of the most watched international shows on the platform, “Game of Thrones,” will be ending soon, too.
The upcoming World Cup cricket tournament, which Hotstar will stream in India, should help it avoid the major headache for sometime. In the meantime, the service is aggressively expanding its slate of original shows in the nation. One of the shows is a remake of BBC/NBC’s popular “The Office.”
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These days, most days are good days. My clients are founder and executives, I set my own schedule, and I live in a city I love. As an executive coach and advisor, I work with founders and CEOs of companies who have raised more than $100M. Like any enterprise, it’s taken a lot of building, planning, and failing for me to get where I am.
What I’m supposed to tell you is that I worked hard and persevered – and I did.
But what I’m not supposed to tell you is how it felt to do all that failing, and above all how, for years, shame was the primary emotion that guided my life and career. How, at my lowest point, I felt worthless. How I even contemplated self-harm.
It takes a herculean energy to start a company, which is maybe why, so often, our stories sound like myths. Mine went something like this: If I could just raise money from a top-tier VC, get to $1M in revenue, and sell the business for more than $5M, then I’d be good enough. I’d be the successful young adult I wanted to be. Then, once I had made my first million, I could take a swing and start a billion-dollar company.
The fact that I didn’t feel worthy of love, that I lacked inherent value, drove my decisions. My failure to reach the goals I set reinforced the belief I that I was unworthy. Luckily, I eventually found the self-awareness to realize that blindly pursuing goals I couldn’t achieve was unhealthy.
But I didn’t expect that walking away from my job as CEO would break me, nor did I realize how far I would sink.
I thought that if I was “successful,” people would see that I wasn’t flawed, and I’d finally be worth something.
After extensive therapy, it’s easy for me to see how misguided I was from the outset. Shame, most of the time, is a thing of the past. But for a long time, it fueled every decision I made yet never seemed to exhaust itself – there was always more. In the business world, this is more common than we’re led to think — almost every entrepreneur I meet shares an experience “otherness.” We glorify failure, but we don’t have the patience to honor the pain that turns into the shame of feeling “I’m not good enough.”
We are supposed to be resolute, driven, and resilient. To that end, I want to share what I’ve learned so others who struggle with worthlessness know they aren’t alone, and that happiness – and enjoying success – is still possible.
At 19, I didn’t have a grand plan to change higher education. I was simply a pissed off freshman in college. In an interview with the Chronicle of Higher Education, Jeff Young asked me: what would I do with UnCollege, the site I’d just put online?
UnCollege was a fledgling website I’d created out of my frustration in college. It was designed to create a community of people who were frustrated with the status quo in higher education. In that pivotal moment, when Young asked about my plans for the site, I immediately tied my self-worth to its future. It was, after all, the reason I was being interviewed by a major publication. I had to turn UnCollege into something, or else I’d be a failure – and worse, everyone would know it, because now it was public.
From then on, I started a mental list of what I needed to do to be a successful entrepreneur. My list grew quickly and each item carried a familiar caveat. I must write a book or I’m worthless. I must start a company and raise $1M or I’m worthless I must speak at conferences around the world or I’m worthless.
I did raise money. I did start the company. I got to $1M in revenue. Each time I checked one of these boxes, I wasn’t happier. I started to be afraid I would never feel I was enough. I didn’t feel “successful,” especially in the way I saw success portrayed by others, both online and in the industry.
I thought that if I was “successful,” people would see that I wasn’t flawed, and I’d finally be worth something. What I didn’t know is that each time I checked something off my mental checklist, I’d be consumed with shame and insecurity, needing to check the next item off the list in order to feel worthy.
Instead, I felt trapped. I didn’t yet know that self-worth must come from within.
I realized quickly that I’d committed myself to starting a company because I was afraid of failure, not because I had carefully considered what problem I wanted to dedicate the next ten years of my life to solving. Nonetheless, UnCollege enrolled its first students in September 2013.
That fall, I began to suspect I’d made a mistake. But I was afraid to tell my investors, and those that had supported me to get the business this far. My survival skill was to smile and act like I knew better than everyone else. If only I’d had the courage to sincerely ask for advice.
One consequence of not asking for help was I had to let go of two of the first people I hired, and layoff two more because we didn’t have the cash.
The first cohort was a disaster. I hadn’t designed a properly structured curriculum, and students were dissatisfied. The students liked the community of self-directed learners, but the company wasn’t delivering value beyond the community. Two weeks before the end of the semester, the students declared mutiny and demanded to know what we were going to do to improve the program.
I was terrified and wanted to leave, but we’d already taken money for the next cohort of students. I believed I didn’t have any other choice. We created a coaching program, hired coaches, built two dozen new workshops, and started working to get students placed into internships. The coaching model we built worked, and we spent the next two years improving it.
In the spring of 2015, I called my lead investor, my voice shaking. He knew that I had my share of fear and insecurity, but I told him clearly that day “I can’t do this anymore. It’s going to break me.”
Ignoring my feelings was a survival skill as child. Ignoring the doubt and anxiety caused by early critics allowed me to push through and launch a company. But it was also my achilles heel.
At the same time I was experiencing burnout, the company was pivoting from a college alternative into a pre-college program. The board agreed: it was time to hire a CEO.
After hiring a CEO, it became more difficult to motivate myself to go to work every day. Getting out of bed became a chore. One morning, after a breakfast with a prospective investor at the Four Seasons, I sat down on a bench outside and began to cry. Looking up, I saw one of our previous students waving at me, and quickly wipe away my tears to give him a faint smile.
I felt embarrassed, weak, and helpless.
Deriving identity from my work wasn’t working, and I knew I had to put an end to it. But what were my alternatives?
I was excited for my company and its new leadership, but I was anxious. I was empty. I didn’t know where the company stopped and I began. At my 25th birthday dinner, I couldn’t eat. I was consumed by shame, by fear. I managed to hold off all through dinner, but as soon as I arrived home I broke down sobbing.
In December, I was no longer CEO of my own company. Six months later, I couldn’t get out of bed.
Those first few months I spent catching my breath. I was still on the board of the company, but I didn’t control it. As I began constructing a life post-UnCollege, I had no idea where to start. I didn’t yet realize it, but I needed to go through the individuation process – to figure out who I was and what I believed, independent of my family of origin. Already 25, I’d managed to avoid these questions. The irony is not lost on me that most of my peers faced them in college.
Shame is a consumptive state of being. The longer I went without answers to questions tied to my selfhood, the more shame ate me up. What did I care about? Did I make the right choice? Was the sacrifice I’d made to start this company worth it? Had I taken the wrong path? Was all the pain I’d been through a waste? Would I ever learn to feel happy again? I was beginning to feel as if I had no self at all.
Without a job to make me feel useful, I spent most days drinking at Dolores Park in San Francisco. I knew this wasn’t healthy, but I convinced myself I deserved it after years of hard work. Again, I was only 25. Life had lost its color. Things that once brought me joy no longer did. I could no longer grin and bear the pain. Believing my own bullshit about how I was going to be OK was no longer working. The more this cycle continued, the stronger it got, and the weaker I felt – all the more trapped.
Even the most successful people carry trauma, and often lash themselves onward with its whip
One Monday in October, I found myself completely unable to function. Alone in my house, I realized I hadn’t gotten out of bed or eaten a meal for several days. I was supposed to get on a plane to fly to Minneapolis, and I just couldn’t bring myself to do it. Instead, I called my dad, who encouraged me to message my doctor and say, “I think I might be depressed.” I was still too scared to pick up the phone, and it would be another few months before I uttered those words out loud. I started therapy, but things got worse before they got better.
Beyond “I’m sad that my company didn’t turn into what I wanted,” I didn’t have names for my emotions. A lightbulb moment came when my therapist asked, “When have you felt anxiety?” The only example I could think of was the time my company was only a few days from running out of cash.
“Have you ever considered that you only feel your emotions at extremes – a 20, for example, on a 1-10 scale? It’s human to feel anxiety in day-to-day life.”
That opened a door. I wasn’t just sad about leaving my company: I felt shame that I wasn’t “successful.” It wasn’t only my identity I’d tied to the business, but my self-worth. Deep down, my core belief that I – myself – wasn’t good enough. This is shame by definition: a hole that forms in our deepest selves we can never fill because it seems permanent; it seems, by nature, that this is who we are, not what we have done.
Shame often comes from feeling different as a child. In my case, I stuttered as a child. My voice was too ugly to be heard, so I concealed it. I used synonyms to avoid the sounds I couldn’t make. I did this because I couldn’t handle the intense shame of not being able to say my own last name without stuttering. In doing so, I learned to ignore, to numb those intense feelings of shame. I coped, and because I learned to cope so early in life, I learned to numb the rest of my feelings along with it.
By the time I launched a company, all those feelings that tell us “something’s wrong” – sadness, exhaustion, frustration, embarrassment, anxiety, guilt, and so on – were so buried and so unnamed that I could only tell myself “You are what’s wrong” when I hit a block, when I encountered the normal and natural failures that entrepreneurs face every day, no matter how successful in the long run.
Ignoring my feelings was a survival skill as child. Ignoring the doubt and anxiety caused by early critics allowed me to push through and launch a company. But it was also my achilles heel. It led me to derive my identity and self-worth from my work.
A CEO, the story goes, has it all together: a CEO is a visionary who sees around corners without any help. Because of this, I couldn’t give myself permission to ask for help, and when I left the company, I lacked the vocabulary or awareness to describe my feelings. My perfectionism, which long ago enabled me to ignore my stuttering, had associated help with failure, and failure with shame.
All these years later, I still couldn’t allow myself to ask for help.
Stress, overwhelm, burnout: these were the closest words I had to describe my feelings. This is startup lingo for things you cycle through now and again, and the story goes that we push past them and keep working. But these aren’t emotions. They are coverups for feelings of pain and shame. Ultimately, they describe trauma.
When most people think of trauma they imagine a car crash, or maybe a natural disaster or physical assault. An event that curtails your ability to function entirely. But trauma is simply a piece of the past we carry with us in the present that shapes us — in both positive and negative ways.
In my coaching career, I’ve worked with entrepreneurs and executives who felt too pretty, too ugly, too gay, too fat, too foreign, too dumb, too smart, too dark, or too light. These were the holes of shame they couldn’t fill and believed would always be there. They weren’t by any means failures: even the most successful people carry trauma, and often lash themselves onward with its whip. But shame is something even the best of us can’t outrun. Eventually it catches up with you. It took me years to understand this, and being compassionate towards myself will be a lifelong journey.
Once I had the vocabulary to separate my self-worth from my professional ambitions, UnCollege was a failure I could be proud of, not to mention a learning experience I could bring to my next project: Helping others learn to love themselves, and as a result, build wildly successful companies.
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