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

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.

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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