In taking Stitch Fix (www.stitchfix) public in November 2017, Katrina Lake became
not only the sole woman to take a tech startup public that year, but the 35-year-old
is also the youngest ever to take a company public. Currently valued at more than
$3 billion, Stitch Fix serves almost 3 million customers, has 5,800 employees and
had revenues last year of $1 B.
not only the sole woman to take a tech startup public that year, but the 35-year-old
is also the youngest ever to take a company public. Currently valued at more than
$3 billion, Stitch Fix serves almost 3 million customers, has 5,800 employees and
had revenues last year of $1 B.
Lake had originally enrolled in a pre-med program at Stanford. Her plan was to
follow in her father's footsteps and become a doctor. She soon discovered,
however, that she was drawn more towards the study of economics so she shifted
gears and earned a B.S. in Economics.
follow in her father's footsteps and become a doctor. She soon discovered,
however, that she was drawn more towards the study of economics so she shifted
gears and earned a B.S. in Economics.
After earning her degree, she worked for a retail consulting firm and at Parthenon,
a private equity group, in their retail and restaurant practices but it was during her
time studying entrepreneurship at Harvard Business School that she came up with
the concept for Stitch Fix. While working on a class project, Lake had the idea to
bring a better shopping experience to women without easy access to a wide range
of fashion options or the possibility/inclination to spend time shopping around. Stitch
Fix is a personalized shopping service that uses algorithms and recommendations
from stylists to curate boxes of clothing and accessories that match a customer's
style, size and fit preferences. The concept is to make personal shopping more
affordable and less time-consuming.
a private equity group, in their retail and restaurant practices but it was during her
time studying entrepreneurship at Harvard Business School that she came up with
the concept for Stitch Fix. While working on a class project, Lake had the idea to
bring a better shopping experience to women without easy access to a wide range
of fashion options or the possibility/inclination to spend time shopping around. Stitch
Fix is a personalized shopping service that uses algorithms and recommendations
from stylists to curate boxes of clothing and accessories that match a customer's
style, size and fit preferences. The concept is to make personal shopping more
affordable and less time-consuming.
But Lake initially struggled to raise money in an industry dominated by male
investors. "It was just a woman's product. I definitely think that it didn't help," Lake
has stated.1 "When you realize 94% of venture investors are male, it can't help but
make it harder." But even after managing to raise early capital, things didn't exactly
go smoothly. In 2013, Lake asked one of her early investors, Lightspeed Venture
Partners, to remove one of its principals, Justin Caldbeck, from his role as a Stitch
Fix board observer due to his behavior. Caldbeck has since been the subject of
numerous sexual harassment claims. Lightspeed agreed to remove him, but
according to multiple reports; it also asked Lake to sign a nondisparagement
agreement. Lightspeed later released a statement on Twitter acknowledging
that they received a complaint about Caldbeck from “a portfolio company” and
stating that they “should have done more.”2
investors. "It was just a woman's product. I definitely think that it didn't help," Lake
has stated.1 "When you realize 94% of venture investors are male, it can't help but
make it harder." But even after managing to raise early capital, things didn't exactly
go smoothly. In 2013, Lake asked one of her early investors, Lightspeed Venture
Partners, to remove one of its principals, Justin Caldbeck, from his role as a Stitch
Fix board observer due to his behavior. Caldbeck has since been the subject of
numerous sexual harassment claims. Lightspeed agreed to remove him, but
according to multiple reports; it also asked Lake to sign a nondisparagement
agreement. Lightspeed later released a statement on Twitter acknowledging
that they received a complaint about Caldbeck from “a portfolio company” and
stating that they “should have done more.”2
In 2014, Benchmark Capital invested in the company at a $300 million valuation and
helped set the Company on a course for an IPO.
helped set the Company on a course for an IPO.
The Company's public debut was rocky as well. Just before its debut on the
Nasdaq, the Company was forced to reduce the size of its offering because
investors were skittish after the June IPO of Blue Apron—a fellow "stuff-in-a-box"
company whose plummeting stock prices burned the investors who wrote checks
at the IPO. By the end of the first trading day, Stitch Fix’s share price dropped to
$15.15 from its opening price of $16.90. The next day, it dipped even lower. But
things soon stabilized. Ten days after its market debut, Stitch Fix’s stock price rose
almost 54 percent. “An astonishing feat,” TechCrunch called it.3 The Company
ultimately raised more than $120 M in its IPO.
Nasdaq, the Company was forced to reduce the size of its offering because
investors were skittish after the June IPO of Blue Apron—a fellow "stuff-in-a-box"
company whose plummeting stock prices burned the investors who wrote checks
at the IPO. By the end of the first trading day, Stitch Fix’s share price dropped to
$15.15 from its opening price of $16.90. The next day, it dipped even lower. But
things soon stabilized. Ten days after its market debut, Stitch Fix’s stock price rose
almost 54 percent. “An astonishing feat,” TechCrunch called it.3 The Company
ultimately raised more than $120 M in its IPO.
When Lake took Stitch Fix public, much was made of the fact that she was holding
her young son in her arms while ringing the Nasdaq Opening Bell. It has become
an iconic image and an inspiration to the many young women who see and
understand the barriers but are contemplating starting or running a company
anyway.
her young son in her arms while ringing the Nasdaq Opening Bell. It has become
an iconic image and an inspiration to the many young women who see and
understand the barriers but are contemplating starting or running a company
anyway.
Since going public, Stitch Fix has been on a tear. It has expanded its line to include
men's and plus-size clothing. It recently introduced Stitch Fix Kids.
men's and plus-size clothing. It recently introduced Stitch Fix Kids.
public eye. We need diversity on boards and management teams, in decision makers
and venture investors. All of those things have to change in order to create an
environment where diversity and inclusion are celebrated.”4
1.https://www.forbes.com/sites/moiraforbes/2018/08/09/katrina-lake-billion-dollar-business/#146d56cb727f
2. https://www.axios.com/how-lightspeed-responded-to-caldbecks-alleged-behavior-1513303291-797b3d44-6b7d-4cd1-89ef-7e35782a32e6.html
3.https://techcrunch.com/2017/11/27/stitch-fix-defies-odds-soars-over-50-since-lackluster-debut/
4. https://www.elle.com/fashion/a15895336/katrina-lake-stitch-fix-ceo-interview/
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