How Outdoor Voices, a Startup Darling, Imploded
This NYT expose shines a light on the dramatic changes that have occurred within Outdoor Voices over the past couple of months. Specifically, it details how the ex-CEO and founder, Tyler Haney, became frustrated with how outsiders that were brought in to help the company negatively impacted the ethos of the brand (specifically Mickey Drexler, former chairman of the company). From the article: "The shake-up has highlighted the generational friction that can arise between idealistic start-up founders, the employees they hire and the seasoned executives their companies often need for success. And it has added to questions about the viability of money-losing e-commerce start-ups, which have amassed piles of venture capital in recent years as they try to disrupt the markets for everything from toothbrushes to watches. In recent months, as investors have become more skeptical, the valuations of a number of these cash-burning 'direct to consumer' businesses, like the online mattress company Casper Sleep, have plummeted." While it sounds like Outdoor Voices experienced a bit of a perfect storm situation, many DTC companies are struggling today. Read below for more examples.