Blitzscaling 07: Mariam Naficy on Lessons From The Dot Com Days and Knowing When To Blitzscale

Executive Summary:

  • Mariam Naficy is a serial entrepreneur who founded the successful online cosmetics company Eve.com, which sold for over $100M.
  • For her current company Minted, Mariam Naficy took a more capital-efficient approach, raising $7M over 7 years to build a crowdsourced design marketplace.
  • As Minted scaled, key priorities included building an executive team, data-driven decision making, vertical expansions, cash discipline, and delegating to manage rapid growth.

Meeting Notes:

Marianne's Background as a Serial Entrepreneur

  • Mariam Naficy had successful experience in the first internet boom, known as one of the most powerful women entrepreneurs
  • At age 28 in 1998, she raised $6 million to start her first internet company, Eve.com, with a friend

Marianne's First Internet Company (Eve.com)

  • Eve.com was launched in 1998 with the goal of being the first online cosmetics destination
  • Grew extremely rapidly to 120 employees in just 6 months
  • Received acquisition offers from Sephora/LVMH even before launching, as they saw Eve.com as a competitive threat
  • Eventually sold to Idealab for over $100 million in April 2000, just before the dotcom crash

Lessons Learned from Eve.com

  • Mariam Naficy wishes she had bought the company back when it was struggling instead of selling
    • She admits she became too conservative due to the implosion happening around her
    • Regrets not raising more capital earlier and being less conservative with financing and growth
  • Having a large board with 10+ members led to challenges, with ~20% of time spent managing the board
  • Too many investors/executives on the board led to conflicts and differing incentives

Starting Minted

  • Initially focused on crowdsourcing stationery designs from a global creative community
  • Took a capital-efficient approach, raising only $7 million over 7 years
  • Wanted to control the strategy herself and not have too many external stakeholders involved early on
  • Goal was to build a fresh retail brand powered by crowdsourced designs that wouldn't go stale

Scaling Minted##

  • Expanded from stationery into art prints, fabrics, and home decor verticals
  • Invested in building a professional executive team to lead different departments
  • Leveraged the global creative community to crowdsource an endless stream of new designs
  • Relied heavily on data analytics, customer metrics and feedback to drive decisions

Advice for Entrepreneurs

  • Be bolder and take more risks early on instead of being overly conservative
  • Seek out male mentors in addition to female mentors
  • Focus on results and execution, don't get too distracted by diversity discussions
  • Build up internal talent over time rather than just hiring externally

Managing Rapid Growth

  • Importance of disciplined cash management and financing strategy as the company scaled
  • Transitioning from being involved in all aspects to delegating and managing the organization as it grew larger
  • Had to become more decisive in prioritizing certain fires to fight based on impact to revenue growth