Gurley says Katrina Lake may be the youngest female founder ever to take a company public.
“I found out this morning she may be the youngest female founder to actually take their company public ever.”
“Before we ever engage with a customer, they've already given us way more information than any other apparel retailer has.”
Gurley describes Stitch Fix's approach as ultimate recommendation engine that doesn't show customers the choices.
“Our head of algorithm says it's the ultimate recommendation engine because we don't even let you look at the choices. And that level of curation is something that's highly unique,”
Gurley says Stitch Fix created $60 million in free cash flow, raising only $40 million before IPO.
“The company had only raised $40,000,000. Hence, we had created $60,000,000 in free cash flow, something that's extremely rare in Silicon Valley these days.”
Gurley describes Stitch Fix using machine learning and collaborative filtering to deliver items customers haven't seen yet via stylists.
“We try and learn as much as we can about the individual, and then we use machine learning and collaborative filtering, a whole bunch of algorithms that helps of our stylists, and we deliver something to you that you haven't even seen yet.”
Gurley claims Stitch Fix knows 10x more about customers and merchandise than competitors like Nordstrom's and Macy's.
“So you can put us up against anyone, Nordstrom's, Macy's, any of these players, and I am certain that we know 10 x more about our customers and even 10 x more about the merchandise.”
Gurley notes Stitch Fix is over 80% female employees with 60% female management and board composition.
“Over 80% of the employees are female. Over 60% of the management team's female. Over 60% of the board is female.”
Gurley notes Stitch Fix has over 80% female employees, over 60% female management and board.
“Stitch Fix, people may not know this. Over 80% of the employees are female. Over 60% of the management team's female. Over 60% of the board is female.”
Gurley notes Katrina Lake may be the youngest female founder to take a company public ever.
“I found out this morning she may be the youngest female founder to actually take their company public ever. And so these success points and data points create role models that help bring everything forward.”
Gurley explains Stitch Fix stayed under unicorn status by avoiding fundraising while maintaining profitability for several years.
“One of the unique things about Stitch Fix relative to all of the unicorns out in Silicon Valley is that they've run very disciplined and profitable approach. They've been profitable for several years.”
“Over 60% of the management team's female. Over 60% of the board is female. And I found out this morning she may be the youngest female founder to actually take their company public ever.”
Gurley reports three of his last six investments have female founders, highlighting Katrina Lake's founder-to-public-CEO trajectory.
“Three of the last six investments that I've made have female founders. Katrina's, obviously, as John pointed out, an amazing role model in terms of not only being a founder, but being a founder that made the transition to CEO and then being a founder that made a transition to CEO to public CEO.”
Gurley says Stitch Fix reached billion-dollar run rate profitably, generating $60M free cash flow on just $40M raised.
“So we're at a billion dollar run rate. We've been profitable for many quarters. In fact, when the company came public, it is over a $100,000,000 of cash on the balance sheet.”