An Open letter to the VCs that invested in Quibi.
So Quibi is shutting down after raising ~$1.8B in funding.
I’m not privy to the details of this fiasco, but the massive red flag for me was bringing on the former CEO of HP.
When will boards & investors learn that you need startup people to run startups?
Don’t get me wrong, Meg Whitman might be amazing at business.
However, a startup is not a business.
A startup is a mess of experiments and tests and learnings until you figure out what’s going to work — and then you do it all over again when you need to tackle the next milestone.
Startups don’t pay $1M for each 10-minute episode when you don’t have the subscribers to justify that.
Did you benchmark your unit economics?
Did you understand your LTV?
And if that much investment into your product was the right call, did you invest the same amount into marketing?
The best product in the world gets beat by smart marketing every single time.
