AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I founded Poppy to connect families with vetted childcare providers, aiming to create a modern village for parents.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I realized that the childcare market is inherently margin-challenged, making it difficult to scale Poppy effectively.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

Even though we had a solid growth rate, it wasn't enough to sustain the business, leading me to consider shutting it down.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I explored three options: pivoting the business, seeking acquisition, or shutting it down completely, ultimately deciding to close Poppy.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

The decision to shut down was influenced by the realization that our initial hypothesis about the business model wasn't panning out as expected.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

The final decision to shut down came after realizing that the business model was not sustainable and that it was time to start fresh. I was tremendously lucky to have supportive investors who believed in the mission of Poppy, which made it easier to communicate the difficult decision to shut down.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I communicated transparently with my team and investors about our financial situation, ensuring everyone understood the challenges we faced.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I had to balance transparency with kindness when discussing the company's future with my team, especially as we grew larger.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I learned that controlling the narrative during the shutdown process gave me a sense of power, even in a difficult situation.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I conducted monthly investor updates to maintain transparency about our financial health and operational challenges.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

During the hardest week of shutting down, it was powerful to know I had the backing of my investors, who understood that sometimes things don't work out despite our best efforts.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

As founders, we often have amazing ideas and plans, but when things don't work out, it doesn't mean we failed; it just means the outcome was different than expected.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

Keeping investors closely updated through monthly reports is crucial, especially during tough times, as it helps maintain transparency and accountability.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

When shutting down, it's important to communicate transparently with your team and users, ensuring they understand the situation and can find new opportunities.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

The decision to shut down Poppy was made with the understanding that it was better to conserve capital and provide some breathing room for employees rather than prolonging the inevitable.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I felt a grieving process after shutting down Poppy, as it was a significant part of my life and identity for several years.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

It's important to have conversations about the realities of startup failures, as they are part of the journey and can lead to valuable learning experiences for future endeavors.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

I learned that kindness to myself is essential during this transition, allowing me to take the time to figure out what's next without rushing into decisions.

AP

Avni Patel Thompson

01/31/19

@ Y Combinator

Poppy was not a failure; it achieved its mission of helping thousands of parents and caregivers, even if it didn't scale as I had hoped.

What Shutting Down Your Startup Feels Like - Avni Patel Thompson of Poppy with Kat Manalac

Takeaways