Julie Wainwright (Founder, The RealReal) on Facing the Competition and Taking Companies Public
Money Rehab with Nicole Lapin
Deep Dive
Why did Julie Wainwright decide to leave the corporate world and enter the tech industry?
She saw the tech world as the future and wanted to be part of it. The corporate environment at Clorox didn't align with her desire to create and take risks.
What was the key difference in business models between The RealReal and TradeZ?
The RealReal took possession of products, provided authentication, and controlled pricing, while TradeZ was a self-listing site with virtual authentication.
How did The RealReal's brick-and-mortar stores impact the business?
Stores changed customer perception, increased average order size, and boosted both buying and consigning propensities, creating a halo effect.
What challenges did The RealReal face during the COVID-19 pandemic?
The company couldn't pick up products due to shutdowns, leading to inventory depletion and operational disruptions, including legal issues with short sellers.
Why did Julie Wainwright get fired from The RealReal?
She had a conflict with a board member and was let go due to not hitting numbers during COVID, despite rebuilding the board and running a successful company.
What is Julie Wainwright's new venture, Ahara Med, focused on?
Ahara Med offers personalized nutrition and weight loss solutions, including compounded drugs and dietitian consulting, aiming to prevent weight regain after drug use.
How did Julie Wainwright manage to raise over a billion dollars in her career?
She attributes her success to being an outlier, not attending prestigious schools, and having a strong point of view that she executed and iterated upon.
What was the turning point for The RealReal in acquiring luxury products?
A celebrity stylist provided a significant amount of high-quality product, helping the company get through the summer and kickstarting their growth.
What is Julie Wainwright's advice for personal finance?
Pay off credit card balances and invest in retirement accounts, using data to make informed decisions and diversifying assets for financial security.
How did Julie Wainwright view her time as CEO of Pets.com in retrospect?
She sees it as a timing issue rather than a failure, as the concept was ahead of its time and similar to successful companies like Chewy.com.
- Entrepreneurial success requires risk-taking, operating in gray areas, strong execution, and iteration.
- Talent recognition and capital raising are crucial.
- There's no work-life balance in entrepreneurship; commitment is key.
Shownotes Transcript