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Minted.com CEO Mariam Naficy shares ‘the biggest surprise about entrepreneurship’

At TechCrunch Early Stage, Minted CEO and serial founder Mariam Naficy got into the weeds with us on some of the topics founders don’t often discuss. What’s the difference between expectations and reality when it comes to entrepreneurialism? How do you split responsibilities between co-founders? What’s the key to being great at hiring?

We also talked about some of the harder parts of being a leader, including how to handle layoffs and what to do with an employee who likes to rock the boat.

Minted is an e-commerce platform that connects indie designers with customers for products like stationary, art and home goods. The company has raised nearly $300 million and generates hundreds of millions in revenue. And it’s not Naficy’s first stint as a founder: she previously co-founded Eve, which she eventually sold for $100 million+, according to reports.

We covered a lot of ground in the interview, including some questions from the audience, which you can check out in the video below. You’ll also find a lightly edited transcript of the conversation.

The most surprising part of being an entrepreneur

I didn’t realize what was, I think, one of the biggest differences, which is how much, if you are successful, you become a leader of people, whether you are a reluctant leader of people or an enthusiastic leader of people. If you’re successful, your company will inevitably grow and you end up, believe it or not, being a role model for people. People actually look at you and they emulate your behavior and that is not something that I expected.

I thought I was just going to be making products and selling products. I just didn’t think that it was gonna be such a people job — a management job, a talent development job, a leadership job — and that people would care when you walked in the building every day whether you said hello to them in the morning. They would actually notice whether you said “hi” or not to them at the coffee bar when you’re half asleep. What you do every minute actually matters. Every minute of the day. So I think that’s probably the biggest surprise about entrepreneurship.

Being a sole founder versus starting out with a co-founder

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The drunken HQ Trivia finale before it shut down was insane

“Not gonna lie. This f*cking sucks. This is the last HQ ever!” yelled host Matt Richards . And it just got crazier from there.The farewell game of HQ Trivia before it shut down last night was a beautiful disaster. The hosts cursed, sprayed champagne, threatened to defecate on the homes of trolls in the chat window, and begged for new jobs. Imagine Jeopardy but Trebek is hyped-up and blacked-out.

Yesterday HQ Trivia ran out of money, laid off its 25 employees, and shut down. It was in talks to be acquired, but the buyer pulled out last minute and investors weren’t willing to pour any money into the sagging game show. It had paid out $6 million in prizes from its $15 million-plus in venture capital since launching in late 2017.

But HQ was in steady decline since February 2018 when it peaked at over 2.3 million concurrent players to just tens of thousands recently. The games grew repetitive, prize money was split between too many winners, co-founder Colin Kroll passed away, original host and quiz daddy Scott Rogowsky was let go, the startup’s staff failed in an attempt to mutiny and oust the CEO, and layoffs ensued. You can read how it all went down here.

But rather than wither away, the momentary cultural phenemenon went out with a bang. “Should HQ trivia shut down? No? Yes? Or f*ck no!” Richards cackled.

You can watch the final show here, and we’ve laid out some of Richards’ and co-host Anna Roisman’s choicest quotes from HQ’s last game:

  • “If you just got here, this is HQ Trivia. It’s a live mobile gameshow. We’re gonna read about 34 questions and then you’re gonna win about 2 cents and you’re gonna fucking loooooove it” -Roisman
  • “This $5 prize is coming out of my own pocket. We ran out of money. We just kept giving it away. We gave it all to the players, to you, you loyal HQties” -Richards
  • “Take this time now to buy some extra lives. You never know when you’re going to need them. I wish we had an extra life for the company. I’m sorry. I f*cking can’t. I’m gonna cry. My dogs eat $200 worth of food a day. My dogs are gonna starve” -Richards
  • “Why are we shutting down? I don’t know. Ask our investors. What am I going to do with my fish tank? I think our investors ran out of money” -Richards
  • “Who likes healthy snacks! That’s why the investors stopped giving us money, because there wasn’t any f*cking snacks in this b*tch. We were snackless. Who the fuck can work in a place without snacks!” -Richards
  • “I met a couple who told me HQ is part of their foreplay” -Richards
  • “Who’s going to miss the HQ chat? I’m going to miss all those people telling me I don’t have eyebrows or to do the Carlton” -Richards
  • “Maybe we should close every night. These are the nicest f*cking comments I’ve ever seen. Wow, you’re finally telling me I look hot. I tried for a year and a half -Roisman
  • [Reading comments] “‘Won’t miss you at all, good riddance’” -Roisman. “Who said that? Let’s find that mothef*cker and sh*t on his porch” -Richards
  • “Hire everyone! All the people who don’t have jobs they f*cking rock!” -Richards
  • [While doing a headstand] “Someone hire me! I’m f*cking talented” -Roisman
  • “We should have unionized a long time ago” -Richards
  • [To his girlfriend] “Hello baby! I don’t got a job, you still love me?” -Richards
  • “We bought this giant bottle of champagne for when we hit 3 million players” -Richards (HQ never got there)
  • [Shakening up the champagne and opening it to a disappointing trickle] “It wasn’t as big as I thought it was gonna be” -Richards.That’s what she said. It was anti-climactic” -Roisman. “Much like this episode” -Richards. “Much like this app” -Roisman
  • “They gave me like two double shots of tequila” -Richards, on why he was drunk

Then things really went off the rails at 41 minutes in, cued up here:

  • [Upon a bunch of people getting a question wrong] “Y’all fucking fucked up!  You are dumb! I’m kidding, you’re not dumb. You fucked up. It happens” -Richards
  • [Reading the final question together] “What does Subway call it’s employees? Ham hands, sandwich artists, or beef sculptors?”
  • “520 people are splitting $5. Send me your Venmo requests and I’ll send you your fraction of a penny” -Richards

Farewell, HQ Trivia, you glorious beast.

 

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Instagram Stories launches TikTok clone Reels in Brazil

Instagram is launching a video-music remix feature to finally fight back against Chinese social rival TikTok. Instagram Reels lets you make 15-second video clips set to music and share them as Stories, with the potential to go viral on a new Top Reels section of Explore. Just like TikTok, users can soundtrack their Reels with a huge catalog of music, or borrow the audio from anyone else’s video to create a remix of their meme or joke.

Reels is launching today on iOS and Android but is limited to just Brazil, where it’s called Cenas. Reels leverages all of Instagram’s most popular features to Frankenstein-together a remarkably coherent competitor to TikTok’s rich features and community of 1.5 billion monthly users, including 122 million in the U.S., according to Sensor Tower. Instead of trying to start from scratch like Facebook’s Lasso, Instagram could cross-promote Reels heavily to its own billion users.

But Instagram’s challenge will be retraining its populace to make premeditated, storyboarded social entertainment instead of just spontaneous, autobiographical social media like with Stories and feed posts.

“I think Musically before TikTok, and TikTok deserve a ton of credit for popularizing this format,” admits Instagram director of product management Robby Stein . That’s nearly verbatim what Instagram founder Kevin Systrom told me about Snapchat when Instagram launched Stories. “They deserve all the credit,” he said before copying Snapchat so ruthlessly that it stopped growing for three years.

Chinese startups were always criticized for copying American companies, but Reels’ launch signals the grand shift to cloning in the opposite direction.

Yet Stein insists, “No two products are exactly the same, and at the end of the day, sharing video with music is a pretty universal idea we think everyone might be interested in using. The focus has been on how to make this a unique format for us.” The key to that divergence? “Your friends are already all on Instagram. I think that’s only true of Instagram.”

Throwing around Instagram’s weight

Starting in Brazil before potentially rolling out elsewhere could help Instagram nail down its customization and onboarding strategy. Luckily, Brazil has a big Instagram population, a deeply musical culture and a thriving creator community, says Stein.

It also isn’t completely obsessed with TikTok yet, like fellow developing market India. As Facebook CEO Mark Zuckerberg said about trying to grow Lasso, “We’re trying to first see if we can get it to work in countries where TikTok is not already big.” Instagram used this internationalization strategy to make Stories a hit where Snapchat hadn’t expanded yet, and it worked surprisingly well.

Instagram also has the U.S. government on its side for a change. While its parent company Facebook is being investigated for antitrust and privacy violations, TikTok is also under scrutiny.

Chinese tech giant ByteDance’s $1 billion 2017 acquisition of Musical.ly, another Chinese app similar to TikTok but with traction in the U.S., is under review by the Committee on Foreign Investment in the United States. ByteDance turned Musical.ly into TikTok, but it could have to unwind the acquisitions or make other concessions to U.S. regulators to protect the country’s national security. Several senators have also railed against TikTok injecting Chinese social values via censorship into the American discourse.

Perhaps Instagram’s best shot at differentiation is through its social graph. While TikTok is primarily a feed broadcasting app, Instagram can work Reels into its Close Friends and Direct messaging features, potentially opening a new class of creators — shy ones who only want to share with people they trust not to make fun of them. A lot of this lipsyncing / dancing / humor skit content can be kinda cringey when people don’t get it just right.

How Instagram Reels works

Users will find it in the Instagram Stories shutter modes tray next to Boomerang and Super-Zoom. They can either record with silence, borrow the audio of another video they find through hashtag search or Explore, or search a popular or trending song. Some audio snippets will even get their own pages showing off top videos made with them. Teaching users to poach audio for their remixes will be essential to getting Reels off the ground.

Facebook’s enormous music collection secured from all the major labels and many indie publishers powers Reels. Users pick the chunk of the song they want, and can then record or upload multiple video clips to fill out their Reel. Instagram has been building toward this moment since June 2018, when it first launched its Music stickers.

Instagram is adding some much-needed editing tools for Reels, like timed captions so words appear in certain scenes, and a ghost overlay option for lining up transitions so they look fluid. Still, Reels lacks some of the video filters and special effects that TikTok has purposefully built to power certain gags and cuts between scenes. Stein says those are coming.

Once users are satisfied with their editing job, they can post their Reel to Stories or Close Friends, or message it to people. If shared publicly, it also will be eligible to appear in the Top Reels section of the Explore tab. Most cleverly, Instagram works around its own ephemerality by letting users add their Reels to their profile’s non-disappearing Highlights for a shot to show up on Explore even after their 24-hour story expires.

Instead of having to monetize later somehow, Instagram can immediately start making money from Reels since it already shows ads in Stories and the Explore tab. The feature is sure to get plenty of exposure, as 500 million Instagram users already open Stories and Explore each month. Still, Reels’ composer and feed will be buried a few extra taps away from the homescreen compared to TikTok.

TikTok screenshots

Cloning TikTok isn’t just about the features, though Reels does a good job of copying the core ones. Creating scripted content is totally new for most Instagram users, and could feel too showy or goofy for an app known for its seriousness.

TikTok is 100% about acting ridiculous just to make people smile, your personal image be damned. That’s the opposite of the carefully manicured image of glamour and glory most Instagram users try to project. It could feel counter-intuitively more awkward to perform comedy in front of your real friends and fans than it does on a dedicated world stage.

Instagram, and Instagrammers, may have to lose their artful, cool aesthetic to embrace the silliness of tomorrow’s social entertainment. But if Reels can change Instagram’s culture to one where we’re comfortable looking stupid, it could beat TikTok’s talent competition by opening a million private karaoke rooms for goofing off just with friends.

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‘This is Your Life in Silicon Valley’: NYT’s Mike Isaac discusses his upcoming Uber book, Leaks from Facebook and More

Welcome to this week’s transcribed edition of This is Your Life in Silicon Valley. We’re running an experiment for Extra Crunch members that puts This is Your Life in Silicon Valley in words – so you can read from wherever you are.

This is your Life in Silicon Valley was originally started by Sunil Rajaraman and Jascha Kaykas-Wolff in 2018. Rajaraman is a serial entrepreneur and writer (Co-Founded Scripted.com, and is currently an EIR at Foundation Capital), Kaykas-Wolff is the current CMO at Mozilla and ran marketing at BitTorrent. Rajaraman and Kaykas-Wolff started the podcast after a series of blog posts that Sunil wrote for The Bold Italic went viral. The goal of the podcast is to cover issues at the intersection of technology and culture – sharing a different perspective of life in the Bay Area. Their guests include entrepreneurs like Sam Lessin, journalists like Kara Swisher and politicians like Mayor Libby Schaaf and local business owners like David White of Flour + Water.

This week’s edition of This is Your Life in Silicon Valley features Mike Isaac, whose upcoming book about Uber –  ‘Super Pumped’ –  is sure to generate controversy. Isaac conducted hundreds of interviews for the book, and answers some pointed questions about his research during this podcast. Isaac also talks about press leaks, Facebook hacks and more during this interview.

If you want to hear what Mike would ask Travis Kalanick if he had the opportunity for a sitdown, you don’t want to miss this transcript.

For access to the full transcription, become a member of Extra Crunch. Learn more and try it for free. 

Sunil Rajaraman:

Welcome to season three of This is your Life in Silicon Valley, a podcast about the Bay Area, technology, and culture. I’m your host Sunil Rajaraman, and I’m joined by my cohost, Jascha Kaykas-Wolff-Wolff. This is your Life in Silicon Valley is brought to you by The Bold Italic.

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Meet ‘Genies,’ the lifelike personalized avatars that reenact news

 “We plan on making Bitmoji obsolete,” says Akash Nigam, CEO of Genies. Bragging about beating one of the world’s top apps before his has even launched is emblematic of Nigam’s and Genies’ brash style. But with $15 million in funding at a valuation over $100 million, top investors like NEA and Hollywood royalty like CAA are buying into the avatar startup. Read More

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Imagining five retro technologies as startup pitches

 Silicon Valley is a bubble. Go into any SoMa coffee shop and you’ll hear founders and investors alike singing the praises of Hyperloop and flying cars — sci-fi tropes reincarnated by billionaires with a god complex. This isn’t to say these technologies shouldn’t be pursued, but sometimes it’s healthy to remember that we are effectively pulling a Facebook… Read More

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Laugh.ly grabs $2.25 million for its stand-up comedy streaming service

laughly-beta A streaming service for stand-up comedy called Laugh.ly, which publicly launched this past August, has now closed on $2.25 million in seed funding led by New York Angels, the company announced today. Available for both iOS and Android devices, Laugh.ly is the first to offer an extensive library of comedians’ stand-up sets, with content from top names in the biz, including Kevin Hart,… Read More

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This bed with built-in subwoofer, TV, lamp and power outlets may be your last purchase, ever

screen-shot-2016-12-22-at-2-50-21-am Furlenco’s new “Pod” might just be the most outrageous product hitting the market this holiday season. The Bangalore, India based furniture rental startup has always had a penchant for targeting the millennial subset, but this is something else entirely — because as any 20-something knows, adding a bed to things makes them universally more practical. The Pod includes… Read More

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Waggle raises $2.3 million because the internet doesn’t have enough funny animal videos

Pablo of Coco & Pablo, rising stars on Waggle.TV. A startup called Waggle raised $2.3 million in seed funding to become the go-to destination for animal lovers and pet parents online, and for sharing all the cute pups and madcap kitteh adventures they have to offer. The New York City-based startup was incubated at Broadway Video Ventures, the venture arm of the production company behind premium comedy shows like 30 Rock, Portlandia… Read More

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