From layoffs in 2017 to doubling sales in 2020
Startup stories are often too reduced – an entrepreneur dreams up an idea, grabs a few co-founders, collects a little money and presto: success and wealth.
It is almost never true. Even breakout successes like Slack, which feel straightforward, have complicated stories. The most valuable startups include hidden crises and disappointing quarters. Some famous startups even had to do a hard pivot after their original idea failed. Slack was originally a game company, Twitter was a podcasting platform, and YouTube wanted to be a dating service.
But not all startups that fight and eventually make it have to completely reject their original idea. Some just have to shake things up before they can see the hoped-for success.
Social e-commerce and fulfillment platform Teespring is one such company.
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After a layoff and restructuring round in 2017, the company is now on an impressive, profitable growth curve.
I was part of the reporting team that reported on the company’s previous struggles after raising over $ 50 million in venture capital. When Teespring wanted to discuss the numbers behind its recent growth, I was more than curious.
Let’s look this morning at how a startup found its groove a few years after we assumed it was a closed deal.
Rewind the clock, Teespring’s 2017 was a difficult time. The company had cut staff significantly as sales declined, resulting in cost reductions that helped drive the start-up of regular deficits into the black.
At that point, reporting showed that Teespring’s earnings declined after the loss of some electricity sellers and investments in goods other than T-shirts did not significantly improve financial results. After the layoffs, Teespring raised $ 5 million on a reduced valuation to get back on its feet.