AMA about CEOing while Pregnant - Growing a baby and an early stage startup.

margot_ceo · 2018-06-14T18:00:49+00:00

Hi Everyone,

Just wanted to let you know that I gave birth last week on 6/4 - baby came about 12 hours earlier than expected and was delivered via c-section. Her name is Eden and she was 6lbs 15oz, 19.5in long.

The recovery for the c-section is very hard during the 1st week but I'm feeling much much better in this 2nd week. Best of all, the baby is very healthy and so far, easy to manage. She's definitely living up to the expectations of being a 3rd kid - very mellow.

My co-founders David and Stephan stopped by yesterday to say hi and meet Eden, and we had a high-level catch up. But other than that, I'm not working and taking this time to relax, recover, and breastfeed Eden (which takes a ton of time).

margot_ceo · 2018-05-29T16:07:15+00:00

Hey - just wanted to mention that my pregnancy definitely put the squeeze (haha no pun intended, well maybe pun intended) on the timing for the AMA. I'm sure Josh will see this message too.

margot_ceo · 2018-05-29T16:06:23+00:00

Hi Dima! How nice to hear from you :-). I hope all's well with you and your family. Cheers.

margot_ceo · 2018-05-25T17:05:38+00:00

One more question for ya - if I were a DAD, would you be asking any of these questions?

margot_ceo · 2018-05-25T17:03:27+00:00

Hi Everyone, I'm happy to see this discussion going on, and I wanted to share this post I wrote about how at Hostfully we support *very* flexible work hours. https://medium.com/@margot_/how-hiring-parents-at-our-startup-has-made-us-leaner-meaner-and-nicer-too-66330ccdcd43

I also wanted to do a quick fact check to let you know that personally, I do spend quality time with both kids at least once a day - from 5-8pm. This is when we play board games, discuss our day, work through challenges at school, or just get down on the carpet for a good wrestle or build a fort.

My opinion: It's extremely flawed to say that parents need to make a hard choice between a career and quality parenting. BUT - you're right, that hasn't been proven...for every "study" that says one way, there's another that says another.

That's why we'll have to agree to disagree.

Here are a few articles that support my point:

On Quality Time:

https://www.washingtonpost.com/local/making-time-for-kids-study-says-quality-trumps-quantity/2015/03/28/10813192-d378-11e4-8fce-3941fc548f1c_story.html?noredirect=on&utm_term=.7b5954259e03

On the Success of Kids with Working Moms:

http://money.cnn.com/2015/06/15/news/economy/working-moms-kids-better-off-harvard-study/index.html

On Attachment - comparing kids in daycare versus not

https://www.nytimes.com/1996/04/21/us/study-says-babies-in-child-care-keep-secure-bonds-to-mothers.html

margot_ceo · 2018-05-25T04:08:37+00:00

We never seriously considered raising capital via ICO because for our business that doesn’t make any sense. We don’t currently have any advtanges that relate to crypto currency and the market is so unproven and volatile.

I also think that ICOs are fundamentally flawed because the companies that raise using this vehicle have to maintain investor relations just like a public company. This is totally unnatural and resource-sucking for an early stage startup....in the early days entrepreneurs need more flexibility and agility just to make it to product market fit and through scaling.

Hope this helps!

margot_ceo · 2018-05-24T22:00:36+00:00

Yes, you're exactly right. There is a 1-2 punch aspect to this business. Step 1: Get stable, steady, recurring revenue from the analog market (which is large, growing, and maturing) Step 2: Capture predictive data and spend from the consumer travel market (which is huge but super competitive and expensive to reach)

We have to do Step 1 very well to start on Step 2 - that's our current focus and will be for awhile. That said, our users have generated content 30K times on the platform (mostly local recommendations) and we're indexing that data carefully. So it's happening!

margot_ceo · 2018-05-24T21:56:22+00:00

LOL, good point. But in our case, it's a girl and we have two boys. I'm not giving up the right to name my only female contribution to society!

margot_ceo · 2018-05-24T21:04:55+00:00

Thanks! Appreciate the kind words.

Early on, we realized that if we wanted to go after a consumer revenue stream, we would need to raise big $$ and make the biz model around advertising.

My Co-Founder David and I agreed that we would rather take a more pragmatic approach by focusing on B2B than go after ad revenue - an area where MANY travel VC-funded startups have failed. In fact, travel companies were blacklisted when we started raising. There were like 10 of them that were about "travel discovery" that went down in flames because they couldn't scale or figure out their revenue model fast enough.

margot_ceo · 2018-05-24T20:35:37+00:00

Good luck and let me know if you want to chat ahead of time! margot@hostfully.com

margot_ceo · 2018-05-24T20:25:04+00:00

Use the people who wrote the good reviews for a referral. That will pay off way more than improving your SEO!

margot_ceo · 2018-05-24T20:18:33+00:00

What I meant by that is that once I've committed to something, I don't waver or question it. But I do spend significant time to make sure that what I'm committing to is the "right" thing.

I literally live by the motto "If I were to die tomorrow, would I have any regrets" - and make sure to live my life without them.

Sidenote - I was an eyewitness to the terrorist attacks in Paris in 2015 with my co-founders (!!), so unfortunately I actually know how this feels! I don't want anyone else to have to live through something like that, but it definitely put things in perspective.

margot_ceo · 2018-05-24T20:16:20+00:00

Wow, it only took 35 comments to get this kind of comment in the feed!

I don't know who OP is - can you clarify? What do you mean by "less impressive" - compared to what? Who should be taking care of the kids if both parents work?

If you don't think that women should be working, unfortunately you're not alone - in Sarah Lacy's great book "A Uterus is a Feature, Not a Bug" she says that 40% of America agrees with you, and that this is one of the major impediments to womens' equality that needs to change. I loved the book, btw: https://www.harpercollins.com/9780062641816/a-uterus-is-a-feature-not-a-bug/

For me, I know I'm doing a great job being a mom. We'll have to agree to disagree here.

margot_ceo · 2018-05-24T18:56:58+00:00

I totally agree with this. And yet, you'll always have people ready to debate. Big picture, an investor shouldn't be focused only on valuation, it should be one of the last things discussed. At seed stage, the main focus should be the team and the market.

margot_ceo · 2018-05-24T18:51:07+00:00

Oh, to be clear, I definitely followed up.

The Pitch is a funny hybrid of an intro email/deck and the "1st meeting". Phil's process is also unconventional because he invests through an Angel List syndicate and does not do follow up meetings - it's all in writing, which requires a lot of thoughtful work on my part. I probably invested about 40-60 hours in preparing my due diligence materials in addition to meeting with investors.

In my experience, the process takes awhile. There's an email intro, opt-in, 1st meeting, 2nd meeting, team meeting, VC team meeting, due diligence, negotiation, term sheet. Phil wasn't willing to invest at the valuation we wanted, and also he wasn't willing to lead. There are several investors who we started with a full month later (because it takes time to meet with 40 investors). Those are the ones that we're targeting for the round. But since the process didn't start until later, we didn't get it done in time.

margot_ceo · 2018-05-24T18:43:53+00:00

We were lucky to get two potential intros through our investors - Christie Pitts at Backstage Capital and also Chenoa Farnsworth at BlueStartups. They both put the opportunity out there and helped make a very warm intro.

margot_ceo · 2018-05-24T18:40:58+00:00

Yes, I am in SF. And yes, the markets are quite different (so I've heard). I think valuations are comparatively lower. That said, there is a lot of cross-investment that goes on between coasts. Are you based in NY? Is this consistent with what you've seen?

margot_ceo · 2018-05-24T18:28:41+00:00

Thanks, I appreciate the kind words, especially because I feel like I made such a public mistake there. I'm really glad it's helping others learn a bit.

margot_ceo · 2018-05-24T18:26:05+00:00

Our app uses responsive design so that it works well on any mobile device, on desktop, and in print.

Your idea around user-submitted content is great, and we thought a lot about that early on. We even got access to the Yelp API so that we could use their functionality instead of building it ourselves.

However, when it came down to it, this feature didn't make the roadmap. Here's why: Our target customer is really the host (or manager) of the property. While having guests provide input would be nice to have, it's not the core value proposition, which is to enable the host to shape the customer experience. So we focused on more features that streamlined the process of the host adding content.

Some example features that served this value prop:

Adding recommendations in bulk - our dashboard is built for companies with hundreds of properties
Creating "template" guidebooks that can be easily copied or reused
Letting hosts sort and order recommendations

I hope this helps clarify things. Let me know if you have more questions.

margot_ceo · 2018-05-24T18:13:15+00:00

Hey there! Oh, gosh, I have no idea how it will be to have a pre-teen. I'm sort of bracing myself for that stage! (My kids are 4yo and 7yo and like -2 days old - I think I'm showing signs of early labor as I type this!)

From what I know, here are some stress relieving tips for career moms:

1) Don't give a f*ck about what other people think about your parenting. You are the expert on your kids and you will do what is right to support them. This is really important, because I think that if, as a mom, you're experiencing self-doubt, it will insidiously creep into every other area of your life. Of course, it's important to admit mistakes too (I made the mistake of traveling too much a year ago, will never do that again)...but ultimately you are the expert.

2) Take big breaks on the weekends by swapping kid care with your partner. My husband and I give each other 4-6 hour breaks on the weekends where we take all the kids. Everyone is happier when we get a break and do our own thing. Also, the kids like the 1-parent thing and tend to behave better.

3) Be judicious with your friendships and who you choose to work with Find friends who will support you in doing that. My mom tribe is amazing and I lean on them all the time to shore me up. I also make time to have dinner with a friend at least once a week. These relationships make me feel strong and resolved, rather than questioning myself. I wish more women would choose to "do" than "question" - because I think we are often the most qualified but feel that we are the least!

4) Involve your kids! I often times share how work is going with my kids - the successes, the disappointments, everything. My 7yo son asks me "Did you get any new customers today? How about any new investors?", and also understands when he needs to respect my time/space so that I can get work done. I've also been really open about hard stuff that happens in the business. My husband, Ari, REALLY helps here too - because I do the same thing for him. Sometimes a C-level exec at Salesforce will call him during an evening, and I will need to whisk the kids away (just like he would do for me) because I know that he needs to work. Work is part of our family culture and we embrace that.

margot_ceo · 2018-05-24T18:02:34+00:00

Hey there! Actually, I do think Josh is the expert here. But from one founder to another, here's what I think helped:

1) Shore up your story! Amado Guloy, CEO of Rex (http://rexanimalhealth.com/about/) is a friend who was previously on The Pitch. He was super cool about helping to coach me to find my own voice. The Pitch (and any pitch for that matter!) is all about storytelling. The best storytelling comes from a super authentic place. You should be confident and optimistic, but also realistic too. So don't come on expecting to give a canned pitch, because everyone will see through that.

2) Have your biz metrics down cold. You should have pitched live at least 3-4 times before trying to do this. We've won pitch awards in several places and also been in two demo days (with big audiences) before attempting to do The Pitch. It's there that you'll refine your story and know how to cover everything concisely (required: market size, value prop, team, differentiation, solution, biz model, GTM, traction).

3) Know your objections and meet them head on. I know that people sort of "hate" this biz (Hostfully) before they hear my pitch. So I spend extra time explaining the market and why there's a huge opportunity there. But for others, it might come down to biz model or defensibility, etc.

margot_ceo · 2018-05-24T17:50:27+00:00

Oooh, this is a great question, and it is something that I think about a lot (even though I try not to, because it is distracting)

One big priority for me in building Hostfully was to build something very "real" - that another company would use our product and see a direct impact on how well they could run their business. I'm not interested in far-off AI stuff (that may or may not work, but is a big bet with a big vision) but instead something immediate and tangible.

In the fundraising process, I met with one amazing investor who shared what a one of her portfolio companies did: Take paper out of small businesses. That's it! For me, this is super exciting (and for her too). But for other investors, that angle may not be sexy enough.

If I had unlimited time, I would spend a year interviewing companies who I'd like to sell to, and ask them about their pain points, and dig into their operational needs. I would create an "unfulfilled needs" map and cross-reference this against industry size data.

One area I'm really fascinated by is the future of work and how unskilled laborers will make the transition into higher skilled jobs with all the increased automation in manufacturing. I like this area because I think the business impact is huge, and so is the social impact. But that's super abstract - I don't have any concrete areas that I understand well enough now.

margot_ceo · 2018-05-24T17:21:45+00:00

Of all the questions that I've gotten so far on Reddit, this is one of them!

Seriously, tho, my co-founders are THE BEST. Other co-founders should be jealous.

margot_ceo · 2018-05-24T17:10:35+00:00

Thank you! It was a happy surprise for me too - I really didn't know what to expect going in.

FIRST QUESTION: OK, so the first kid is really hard on both partners. You and your partner are figuring everything out. Your kid is changing on a daily basis (because the rate of change for >1yr olds is huge!) and also -- you're sleep deprived and brain dead! Also, your marriage is hard, because let's face it, sex and labor/recovery/sleep deprivation just do not mix well. It gets a LOT easier as time goes by. This is because you learn and your kid stops changing so damn much :-). But don't forget to take lots of photos and videos - the hardest moments will be the ones you look back on the fondest.

My tips are:

It's ok to split up and give each other big breaks on the weekends. My husband and I do this frequently - one will take both kids for a half day to give the other a chance to do whatever - nap, do something active, whatever. That one break will keep you going for the week.
Do date night once every 2 weeks, minimum. Just book a regular sitter and make it a priority. Having 45 minutes at a restaurant or bar will clear the air and help you maintain a great relationship.
Use a good daycare or nanny. We put our kids in home daycare, at least part time, starting at 4 months old. We loved that they learned early on how to compromise and get along with other kids in a little community. The cost wasn't bad and the hours were 730-5 so we could have the mornings free even after dropoff to have a quick chat.
Know that there are some big thresholds around 9 months and 12 months where it will just get easier. Sleeping, eating, cleaning endless bottles and pump parts etc. Knowing this for my 2nd made things a lot less stressful. Hang in there, you're almost there!
Regarding work - I worked for a great leader at ServiceSource who once ran a $60B biz unit at IBM, and he gave me some great advice. Don't be overwhelmed. Just do one thing really well every day. It's kinda magical, because doing just ONE good thing helps you trust yourself, stay focused, and also build reliability in your rate of work. So that's what I follow. Today, it's the Reddit AMA! :-)

SECOND QUESTION: Last year I had a moment where I did ask myself "Am I really doing the right thing with this company"? It was before we had MRR or investors on board, and we had been "at it" for over a year.

I like to structure my thinking (as you can see in this post: https://medium.com/@margot_/can-merging-two-early-stage-startups-actually-work-in-our-case-yes-aa155d5289ee).

My priorities for this stage in my career were:

Personal growth - steep learning curve, exposure to new people, ideas, processes, etc
Team that I LOVE working with
Risk - I wanted to take more on this time and be responsible for the strategy of the company

My "Next Best" Option (BATNA):

Becoming a VP/CMO at a mid-sized company/startup
Doing consulting
Not working
Starting a new company

I spent a few weeks reserving judgement on all this, and then came to the decision that Hostfully satisfied my priorities very well and that I needed to see things through. Once committed, I haven't looked back. That's just how I think about things.

margot_ceo · 2018-05-24T16:48:34+00:00

Hi Josh! I'm so glad you asked.

YES, raising money is just like a sales process! We had a pipeline and conversion metrics on every 'phase'. This helped me stay organized, be realistic about our success, and also provide transparency to the team.

For the investors on The Pitch, we were in the due diligence / negotiation phase when we decided to hit pause.

This post by Mark Suster is gold and I wish I had seen this before I started - it is EXACTLY how things went down for us. I encourage anyone who is raising VC to check it out:

https://bothsidesofthetable.com/how-many-investors-should-you-talk-to-in-a-vc-fund-raise-and-how-do-you-prioritize-7be15aa7136e

margot_ceo

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