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Exit Strategy S1:E7 //Chris Davi: Scaling to $170m in 4 Years and Then Going Bankrupt

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Learn the story of Chris Davi at Loot Crate and how he went from a Startup Weekend to $170m in 4 years... then bankruptcy. Find out where Loot Crate is now and the pitfalls and wisdom Chris can pass along.

Show notes:
(1:10) Moiz introduces Chris and discusses what Loot Crate is (“Comic-Con in a box”).
(2:58) Loot Crate launched in 2012, by 2016 had $170M in revenue (with 600,000 subscribers) and ranked as the fastest growing e-commerce company by Inc.
(6:00) Chris discusses marketing strategy with Facebook vs influencers and the importance of authenticity with influencers.
(12:23) Chris discusses the kind of products Loot Crate has and how to get exclusive products and license deals.
(14:11) Chris discusses raising money early on and later while the company was more successful. (18:30) After crazy initial growth, Loot Crate started losing money by growing too quickly, spending too much on marketing, and having too many products among other issues.
(25:20) Dealing with debt and complexity in cap structure.
(30:01) Moiz and Chris give their takes on inventory as a DTC company vs. selling brick and mortar. (34:30) Loot Crate went bankrupt (Chapter 11) and later acquired, Chris describes the process. (40:30) Chris explains what works today for marketing (fundamentals haven’t changed).
(44:29) Moiz and Chris talk when to trust and not trust your gut when growing your business.
(47:11) Chris lists what he would have done differently.

Our host is Moiz Ali, founder of Native. He took Native from $0 to $100M in 28 months, so he can ask the tough questions that only operators have the right to ask.

What are your thoughts? Comment below to let us know. If you loved the episode, hit subscribe!

Want more Moiz? Follow him here https://twitter.com/moizali

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We often discuss reports and insights from Trends, our premium publication. We spend thousands of hours uncovering the fastest-growing business concepts, industries, and companies to tell you what’s the next big thing 📈
Learn more about Trends: http://bit.ly/Trendsco