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Podcast Notes: Secret Leaders - Episode with Jessica Rolph
Episode Overview
- Title: Lovevery: How Jessica Rolph built $800m giant after $300m Danone exit in <10 years
- Host: Dan Murray-Serter
- Guest: Jessica Rolph, Co-Founder and CEO of Lovevery
- Value of Lovevery: $800 million; raised over $32 million from investors.
- Previous Company: Happy Family, acquired by Danone for $300 million.
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Key Takeaways
Background of Jessica Rolph
- Early Life: Grew up in a divorced family with shared custody, which instilled a sense of love and attention from both parents.
- Entrepreneurial Spirit: Not a childhood entrepreneur; driven by purpose and desire to provide better options for children's development.
- Previous Company: Co-founded Happy Family, focused on organic baby food, which scaled successfully despite initial challenges.
Transition from Happy Family to Lovevery
- Post-Sale Challenges: Faced difficulties during the earnout period with Danone, feeling less relevant in her own company.
- Motivation for Lovevery: Desire to support parents and provide development tools for children; recognized a gap in the market for quality educational products.
Business Philosophy
- Customer Focus: Emphasizes the importance of understanding customer needs and feedback; advocates for maintaining the human element in business.
- Product Development: Iterative process of prototyping and testing with real families before launch; stresses the concept of product-market fit.
Competitive Landscape
- Market Positioning: Lovevery's unique offerings cater to developmental needs of children, with a focus on building trust and relationships with customers.
- Future Vision: Aims to expand globally and serve children in various demographics, emphasizing the importance of early childhood development.
Insights on Entrepreneurship
- Evolving as a Leader: Challenges of balancing personal life and professional responsibilities; stresses the importance of being present in both roles.
- Fundraising Experiences: Noted the vulnerability associated with raising capital as a second-time founder; faced skepticism regarding her capabilities post-Happy Family.
Personal Management
- Work-Life Balance: Continuous struggle to juggle responsibilities as a CEO, mother, and wife; emphasizes the need for accepting help and letting go of perfectionism.
- Self-Awareness: Acknowledges competition with self and the importance of emotional resilience in business.
Lessons for Entrepreneurs
- Prioritize Customer Relationships: Avoid treating customers as mere numbers; focus on building genuine connections.
- Stay Grounded: Regularly test and engage with products/services from a customer perspective to ensure alignment with their needs.
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Conclusion Jessica Rolph's journey illustrates the challenges and triumphs of entrepreneurial life, particularly in establishing a brand that prioritizes child development and parental support. Her insights on the importance of customer relationships, iterative product development, and personal growth provide valuable lessons for aspiring entrepreneurs.
Closing Remarks
- Jessica's passion for her work and dedication to serving families through Lovevery resonates throughout the episode.
- Encourages listeners to explore the offerings of Lovevery for an enriching experience in early childhood development.
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Contact and Additional Resources
- For more insights and previous episodes, visit [Secret Leaders](https://www.secretleaders.com).
- For inquiries, contact: hello@secretleaders.com.
Written by AI. May contain mistakes. Listen to the episode to check what was said.
Transcript
Automatic transcript. May contain errors.0:03I think that it's so easy to forget the intuitive and to forget the human aspect of the business. Think about every touchpoint that you're having with your customer as being, is creating more trust, creating more meaning. I think we need to serve children globally in early childhood. There is so much white space. There is so much need. So since children are children everywhere, we have a global opportunity. Welcome to Secret Leaders. Today I'm joined by Jessica Rolfe, the CEO and co-founder of Love Every. After Jessica's first business, Happy Family, was acquired in 2012, She was inspired from observing her children's interactions with toys and sought to provide parents with the tools and confidence to support their child's development needs at every stage.
0:50From that, Love Every was born. The company has raised over$32 million from investors, including Maveron, Google Ventures, the Chan Zuckerberg Initiative and Reach Capital. And in 2021, raised$100 million in their Series C round. The brand has received awards from Parents' Choice and Red Dot and has been featured on Time's Best Inventions and Fast Company's World Changing Ideas. We're huge Love Every fans in our household with playmats, adorable cards and toys for our toddler to express her emotions and even a working toy kitchen with a sink and washing up station. So I'm excited to talk with her today as her brand is taking over my house every bit as much as Paddington, Paw Patrol and Peppa Pig are.
1:35Jessica, welcome to Secret Leaders. Oh, Dan, thank you so much for having me. It's wonderful to be here, especially with you as a parent. Parent and customer. Happy customer. Jessica, I don't know exactly where to start with you because there's so many different angles. I think as soon as you told me that you're calling from Boise, Idaho, I'm just curious enough to know why. Let's start there. Like, why do you live where you live? Great question. I was born in Minnesota in the Midwest, and I've lived in New York City and San Francisco and Austin. And my husband got a job in Boise, Idaho. And we just kind of thought it was the next stop in our adventure.
2:14So we moved straight from Manhattan to Boise. And it's been a real joy to raise children here and to build a company here, build multiple companies here. So I feel really grateful to be here. But a lot of people in America call it a flyover state. Idaho is, they think it's sort of in the Midwest. it's not it's close to the west coast um so yeah it's great there's lots of advantages of being somewhere maybe uh counterintuitive like you know outside of the typical like san francisco la or new york scene yeah i think before the pandemic we were worried my co-founder rod and i were worried that raising capital was going to be difficult so we did look at moving to the bay area or even austin or seattle um instead of you know having to be in new york la san francisco we felt like maybe we could go to one layer out city.
3:01But we learned that, frankly, we were able to, we just decided that we wanted to take a bet and live here. It's such a great lifestyle. It's a great place to raise children. It's a really wonderful backdrop for an intense life. And we were able to make it work with capital raises. We did a lot of traveling. And then now with the pandemic, post-pandemic, it's been much more accepted that entrepreneurs are going to build their companies in tertiary markets. And why are you an entrepreneur? Tell me a little bit about your background growing up. Oh, you know, I was not the kid that had the really lucrative lemonade stand.
3:36I was not, you know, selling something, creating things. These businesses, and frankly, with Happy Family and Love Every, these are the only two businesses that I've ever been a part of co-creating. And so for me, it's about just deep purpose in life and what I want to bring to the world. And with Happy Family, my first company that I co-founded, my partner had an idea to do something fresh with baby food. And I thought that it was a brilliant idea. It felt like all the baby foods was jarred and processed and it seemed like there needed to be an alternative. And so co-founded that company with her and we ended up really scaling the business.
4:13It was learned a lot of hard lessons along the way, but were successful. And then when I had my children, I felt so good about what they were eating, but I didn't understand what was going on with their development. And so it's really coming from a very deep purpose of a place that I wanted to give back to other families what I had the insights that I had gained from reading white papers on brain development and exploring different different products I realized I was so confident as a parent I wanted to share that confidence with others. So talking about parents what were your parents like? How do you remember your childhood and your relationship as a child to your parents?
4:47Oh that's such a nice question. I'm very close to my parents. My mom is actually visiting today. So she's in town. And my parents divorced when I was three. And my parents got, there was joint custody was awarded to my parents. And so I spent half the time with my mom and half the time with my dad and would go back and forth every few weeks or every few days. There was a whole calendar. And it was legislated to the day. There's 365 days in the year. There was always a half day that was split between my two parents. And I was their only child from that marriage. And so I think for me, I just felt like there was a lot of love poured into me.
5:26And even though I had a family with two different, I had two different experiences. On the one hand, I grew up with my mom, my grandma, and my grandpa. And on the other hand, I grew up with my dad, my stepmom, my younger half-brother who's disabled, and then my stepbrother, my stepsister. So I had kind of very rich family experiences, but there was just a ton of love so it's interesting you're not the first person uh to talk to me it's very commonly thought of as you know divorce being such a traumatic of course it's a traumatic experience but a traumatic reality in people's childhood and then I've actually got some friends who are divorced and really close because they've got kids really close and do it really well and make sure the kid is so much love and it's fascinating because you can in many ways see it works really well for the parents they get half their time exactly to themselves which means that the half the time they're with their kids they're so all in and focused on the kid which is something that you can actually take accidentally for granted as a couple who's together full-time parenting together and it was really interesting for me recently like having these conversations with people who are divorced and understanding that there can be upsides in some of those things too in terms of how you're loved and the attention that you get from both parents.
6:45Yeah, I think that makes a lot of sense. I hadn't actually thought about it precisely that way. But I think you're absolutely right. I think that there, I felt so much love and so much attention. I talk to my parents all the time, still feel very close to them. And I think it's because it was a priority when I was with them, as opposed to I'm in a marriage now with our three children, and it is hard to be present. There's just a lot happening all the time. And so, So, you know, finding those times where you can really be grounded and be present, I think is so important. I also think, you know, for parenting, some of the experts have said anywhere between, you know, 60 to 80 % right, just get it mostly right.
7:25And I think that children are resilient and they do get through challenges. And I know that for my parents, it was a difficult divorce, but I didn't really experience that internally. I just wanted to, I felt love from both of them. So what made you, I mean, obviously you did baby organic baby food products. So I understand like what made you go into that? You're probably going to say being a mom, but you know, what specifically drove you towards entrepreneurship? You know, let's dig into that a little bit. Like not everyone is like, Oh, I don't like these products for my kids. You know, most people just deal with that.
8:00Not everyone goes and starts a business solving that problem and working their ass off and having a really difficult time doing it. So tell us a little bit about your journey and why you started that. Well, surprisingly, I did not have children when I co-founded the company, baby food company with my partner, and she also did not have children. So that was really quite an interesting wrinkle or layer. And I would say that there's probably a lot of parents who have been dissatisfied with baby food or with formula or different categories for a long time, but they have little kids that they're raising and they don't have enough time to take care of that problem.
8:36really make it into a business. For me, I've always been driven by this purpose of how do you think about business as a tool for good in society? How do you think about using business as a platform for change and for positive experiences, both for the employees, but also in the products that you deliver, but then also how you make the products. And so for me, I was very inspired by people like, in America, there's an entrepreneur named Seth Goldman, and he created Honest Tea. And there's another entrepreneur that was in the food industry, Gary Hirshberg, who created Stonyfield Farm or Anita Rotic in the UK, creating The Body Shop.
9:16There was a whole study of entrepreneurs that were emerging maybe 30 years ago or more that were building businesses from a deep purpose. And I was so inspired by that. I loved the pace of business. I loved the excitement of building a company and being an entrepreneur is so exciting. but I also wanted to have meaning in my life. And so I was so grateful to have met my co-founder for my first business. And she had this idea to do fresh baby food and that felt purposeful. It was organic. Right now, almost 40 % of all baby food consumed is organic. And it was only 3 % of baby food consumed is organic when we first started.
9:56And when between Happy Family and Love Every, I created a climate collaborative with the natural products industry. And so there's just a lot around environmental impact, around health impacts that we can make a difference with the right foods at the right times in life. So that was sort of my reason for pursuing happy family. And what did you give up? So at the time, no kids, but not currently an entrepreneur. That's your first business. So how old were you? Take us back to that time in your life. Like what were the choices going through your mind? You could have done that or you could have done something else.
10:31what was the crossroads and how did it feel like getting stuck into a problem like this? Yeah so I ended up doing uh went to business school so I had really wanted to do this intersection between business and social change felt so driven to to make a life um with that with that purpose and was kind of scanning and like thinking about what kind of company we could create and uh and I say we and it was actually my my husband now husband at the time he had an idea to do a food line that was focused on cancer prevention in partnership with the Lance Armstrong Foundation. He had a friend there. And so we put all of our heart and our soul into creating this nonprofit, but it was kind of like Newman's own model.
11:15And so in business school, we were writing up case study, the business model and the business plan. And we met with the Lance Armstrong Foundation. We're like, we really believe this could be so meaningful. And it was at the same time that they were minting money from those yellow bracelets, you know, those plastic bracelets that people get. And the yellow bracelet campaign was so successful. They were like, we don't need to take a risk and start a company related to food and cancer prevention. That sounds too hard. And so I found myself coming up for air and really wondering, okay, what is it going to be?
11:48I love the food industry. I love the organic food industry. I believe in food as purposeful health. And so I had was in business school, and I just graduated, and I took a job at Whole Foods. And I was working in Whole Foods market, thinking that I could maybe find a path in the natural products industry. And I got connected to a woman that was a person who did sampling for a company called a Douala. And I so I would give out samples at a table and give out samples of this Diwalla. And she knew this other woman, Shazi. And she said, I think you two should know each other. And so we connected as co-founders.
12:29And Shazi told me the idea for her company and her vision for what she wanted to create. And I said, let's join forces and do this together. And so at the time, I had a job that was making$80 ,000 a year, which was a big deal for me. I had graduated from business school. My parents were very excited and proud of me. I was living in an apartment with two roommates. And so I was saving money and it had been barely a year. And I said, I want to scrap it all and move to New York. My husband was wrapping up his business school program in a different state. So he was sort of in flux and gathering some debt.
13:07And we just decided, I just decided I had to just do this. And so I moved to New York without really, I had met the Shazi once, but really hadn't, didn't know what I was getting into. So that was the, that was the sort of what life looked like at that time. Okay. What were you getting into? How was the journey? Well, I mean, we had five different apartments. I will say it was kind of a, so the actual living structure of living was very difficult. I, our first place, We moved into a neighborhood where a friend of mine had a deal on an apartment. And it turned out that there were so many cockroaches in this apartment.
13:48My husband and I set up a tent in the living room and slept in a tent for six weeks to avoid the bugs while we were sleeping. So that was, you know, you've got to have those gritty entrepreneurial stories. That was one of them. um i would we shazi had a friend who had a um factory in williamsburg and so he was making fresh soup there at this factory we thought we'd make fresh baby food at this factory i would ride my bike there and it was um very clear soon after we got there that we could not make baby food in this place we joked that we had silent partners and it was the rats that would come out at night you know all over the the um location so there was just a lot where we thought we were making fresh baby food turns out we couldn't actually make fresh needed to do frozen raising money was a challenge there were kind of every challenge imaginable but it was always there was always hope and there was always something to be building and something to um be going after so sounds a bit like the uh baby food version of ratatouille yeah yeah definitely definitely I was saying it's fresh in my mind.
14:54I watched it the other day with my daughter. So yeah, the idea of all the rats co-creating, it sounds disgusting the way you say it, but in my mind, what I just watched, I'm sure it was delicious. We didn't actually make baby food in that factory. Yeah, exactly. I was going to say you're a very clear caveat right now that never happened. It did not happen. So what were the most important lessons that you took from that journey? And I guess related, how hard did you find it to assimilate those lessons along the ride? Yeah, I think the first question that the most difficult is finding product market fit at launch.
15:31That is what every entrepreneur is going for. That is the vision that we have is that we've got this thing, we're building it up, we're raising money, we're not raising money, we're putting our own credit cards at risk. And we want to have success when we launch. And with Happy family, our first product was frozen cubed baby food. And I would say that we just did not have product market fit at launch. We had some, we had a retailer product fit. So retailers really wanted to carry this new fresh baby food in the frozen section. Wow, that's interesting. Maybe it'll bring in new parents into the store.
16:05But customers really weren't coming to the freezers in droves to buy our product. And so we convinced Target to do a 24-store test. And I remember driving around with my dad, buying up product so that we could spike the data. We bought our own products. We could spike the data, just hang in there a little longer with Target. So we had a car full of coolers and we were giving out free coupons to just have free baby food to get people to try it. But I would say that that was the most difficult part of Happy Family was really living through that, not having flow. And so when Rod and I came to co-found Love Every, many years later, we did a lot more research to understand our customer.
16:46And we did some focus groups at Happy Family, but you can kind of reinforce your own vision through some focus groups. We did the design thinking model and we hacked it and did our own version of it with Love Every. So we found 28 families. We followed them for a year. We gave them really ugly prototypes, which is the goal with the design thinking method is you don't want to polish something too much. people will feel intimidated to tell you they don't want to hurt your feelings. She must have worked really hard in that prototype. So I'm not going to, I'm going to tell her it's okay. Instead, we just had these kind of gritty, ugly prototypes, but we would send out a simulation of the play kits experience.
17:21And so we send these families a box built with products that were just for right for their child stage, we made up different versions of what you now have as the play guide and the kit. And then we would travel around and fly around and meet these families and get into their homes and discover what was it, what was happening with their child's development? How are they feeling? What did they think of the products? And at first, I think we wondered, there's these plastic flashing lights toys, and they're just so engaging for a child. You push one button, and all of a sudden, it's entertainment is happening.
17:55And we wondered if parents would really want these more organic, wholesome, developmental products, but that are a little bit more open-ended. And, you know, when we wondered if they would be willing to read the play guide and really tune into this, what's happening right now in their child's stage and age. And what we discovered is it was universal. We had all income levels represented. We had some families on public assistance. We went all the way up to families making over a million a year. And the universal experience was parents did want the best for their children. And so that was really gratifying for us.
18:30And by figuring out all those prototypes and refining every kit that we'd send, we would refine it. That year of testing really made a difference. And so we landed product market fit when we first launched Lovevery, which was a relief. Yeah, it's interesting talking about product market fit because I've had a few companies. And in my last company, I did have product market fit. And they say, and it's true, when you have product market fit, you know. um and uh and when everyone's like do i have market fit or not i'm always like you don't you don't ask that question if you have it it's just so obvious um but that company failed interestingly and um my my newer company heights which has been going for three years now so it's not that new anymore this was a subscription model um it's been going really well uh and it's you know it's surpassed 10 million in revenue and uh as an annual annual reoccurring revenue but i don't describe it as product market fit because yet interestingly because uh the difference is still quite large between the feeling and the last company in this company um i think one of the things that i learned that was a mistake last time though this is a much better business and That's a very important thing.
19:47This is a much better business. There's margin, it's profitable, all of the things. And the last business was an excellent product and went completely viral and grew super fast. It was a shocking business. And so I think there's interesting things when people talk to me about product market fit. It's obviously essential to grow a big brand. Like it really is. But I've also found it to be a really fascinating thing where you can obsess over product market fit because you haven't had it. And then equally, like all entrepreneurs that learn different lessons from different parts of the journey, sometimes when you've had it, you realize that that can also trick you into thinking you've solved problems.
20:27But actually, you know, a great business is a sum of multiple problems solved. You definitely can't grow a great business without product market fit. That's 100 % true. But it's also worth saying, I definitely learned the lesson of there's more to business than just that. Absolutely. That is such a good point. So much has to come together. And it's really, it's the persistence and the passion and the business model. And do you have all the right economics? But it's also, do you have some luck? And is it all coming together? Do you have the right timing? And is it all coming together in this right moment?
21:01It is an incredible act to be able to bring a company to market. And I would say that, and to sustain it, we always think about when we launch a product, we're not done developing the product. And so it's that constant feedback loop. You then now have feedback at scale with your current company, for example. And now you have all this feedback at scale. And so you can research that and push on that. And what do you love and what is not working? Or how can you refine that experience? And I think that for me, that realization that it doesn't have to be fully baked when you launch a product has been so powerful.
21:35And I would say that we live that at Love Every. We love feedback. We look at every single. We're constantly evaluating our NPS score, which is exceptional at 77. We're also looking at our every survey results that we get back, the verbatims, we read them. Sometimes we respond to customers. We're constantly doing research on how can we improve the products that we have in the PlayKits program. Often a lot of the things that a founder realizes are the things to prioritize. Like you just said, NPS, which is net promoter score for anyone that doesn't know. they often come from hard lessons so and and often we zig and zag so a good example is something that I do that I'm quite known for in the UK is building in public I publish everything that we do from day one and all of our revenue figures everything including often when it goes badly and the reason I do that and over communicate to the nth degree is in my last company I kind of forgot to communicate well with investors and you know a couple of times a year and I was just a lot more immature and things were going well and then when things went badly I suddenly started having to communicate and obviously the reaction from people was like why are you just coming to us when there are problems and I think there was like surprise right and I think that that is a very common trait of first-time founders you can get swept up in it all but you know my reaction to that was I'm just going to be ultra transparent this time around that's going to be like my way of approaching it I'm interested therefore if things like your obsession with retention NPS even you talking about product market fit these are all things that you feel like were failings from the first business that you were like really keen to develop and grow from and put into practice in this business yeah absolutely and I think that you know there's a dashboard that we look at every morning we look at how many new subscribers we got the day before how our retention metrics are performing, how we think about our MRR, monthly recurring revenue, and we're constantly looking at all these numbers.
23:38I think that it's so also easy to forget the intuitive and to forget the human aspect of the business. And so I try to hold a place for analyzing, obviously, the business from a metric standpoint, but also really analyzing the business from a human perspective. So I actually got, I get the play kits shipped to me to my home, even though my children are well out of the age band. So I actually just got a new shipment of the baby kit, the looker kit, that very first play kit that a parent receives. And I'm like, I think that the black and white high contrast ball looks a slight bit gray. And so I'm texting, you know, a Slack, one of our partners in manufacturing, and it's organic cotton, and maybe we're having trouble with the saturation, but I'm obsessing over, is this high contrast enough for a newborn?
24:25Are they going to be able to track this. And then I'm also just taking in the experience from an emotional perspective, reading the guides, thinking, imagining that I had a newborn and just thinking about the business, not as numbers, but as a human experience. And I think that that can be very powerful to experience your own product and to think about every touch point that you're having with your customer as being, is creating more trust, creating more meaning. We're really there. We want to partner with you and your darling two-year-old to feel really good about this stage of parenting and feel connected to have those awe moments.
25:00I had no idea she was going to be so interested in playing with water in this super sustainable rotating sink where the water just cycles through. I had no idea she was going to want to do that for 45 minutes at a time. It's unbelievable how engaged this child can be in this activity. It's that discovery that we want to be there for and we want to create a platform for that. So I would say that, you know, there's a lot of analytics with the business, but there's a lot of also emotion. Talk to me a little bit about NPS then, because it's actually something that we're quite obsessed with at Heights.
25:34And I don't think any guest has ever talked about NPS from an experience point of view and why it's important. So actually really great opportunity. I read some of your notes on NPS and even though I think I'm quite good at it, I was like, oh, yeah, this is. I mean, you sound like you take it more seriously than me. And I already thought I took it quite seriously. So I want you to inspire our listeners who might not know or could even, they do do NPS and they want to do it better. Yeah. I mean, just to define NPS, it's a net promoter score. And it is specifically, would you recommend Love Every to a friend?
26:09And so that's a very core question. It's really the essence of whether you have something that's worth sharing, whether you have something that you feel so good about that you would be willing to recommend. For us, it's a bit complex because some people think that economically they say, okay, maybe I would, I love this experience. Would my friend really want it? Can they afford it? Do they feel like they're as in tune to their child's development? So sometimes there's a question around a translation to others with our business. And I think that one of the interesting things, just as a side note, is that we have a very broad demographic.
26:47So we have in the US, we have 40 % of our customers make less than$100 ,000 a year. Almost 50 % of our customers don't have a bachelor's degree, the parents. And so we do have a broad customer base, but I think sometimes people think, oh, I don't know if I should recommend this because it's so special. And I don't know if my friend is gonna really be willing to invest. Then if you think about their reporting, we track it on a trailing 12 month basis. So we think about shifts. I think you can over-index and obsess over one number. Oh my gosh, last month it was 80. And now it's 77. What does this mean?
27:21And you do need to ground yourself in statistical relevance. And I think creating a trailing 12-month average is really useful in that way because you can be very emotional when you see that number go up or down. And the other thing that we love to do is read the verbatims of any detractors. So why are they not recommending it? What is about this experience that's making them not feel good? And we recently had a couple of more detractors that were saying that they couldn't get in touch with our customer service quickly enough. And so that's a red flag for us. You know, we pride ourselves on offering the most kind of human-centric, loving customer service you will ever experience.
28:01And then we were slipping behind on some tickets because we had some other business. We had some launches that went better than planned. We had a lot of demand for some things. We had a lot of people emailing us. And so we had trouble keeping up. And so it's that kind of nuance and reading the verbatims on why can be so powerful, both for the positive of why they love you and also for anyone who's saying that they don't love you. Read their text and then respond to them. Come back to them and say, we have a process where we then go back to each person who was attracted. I'm so sorry. We're going to work on this.
Read the full transcript
28:37Thank you for helping us be better. how important was nps you know at happy family for example is that something you really focused on we did not you know can i be totally honest i had no idea what the letters n p or s stood for um at happy family so that was not on our radar i think that it's also something that was a little bit more distant because we were selling to retailers who were then selling to the end customer so we didn't have this direct personal relationship with our customer um rod morris my co-founder instituted MPS tracking in this company at Lovevery and I'm so grateful to him I think it was a very good move and we we started early and we've continued to track throughout the course of the business and it's very helpful to see that you know make sure that you are doing well with your customers it's it's a very important metric.
29:27Before we move on to some more details around Lovevery so with Happy Family how did the journey end and what was a particular highlight and if if you're willing to share low light from that journey? Yeah, I mean, the highlight was just, I think I would do power, I did a lot of power posing at Happy Family. I did a lot of like, what I desire is on its way. I believe in myself. We had to do a lot of that because it was really, really hard to build that company from scratch. We did not, my co-founder and I did not know what we were doing. And we learned a ton along the way and we felt like we had momentum in a lot of important places, but it took a while for us to get to that product market fit, as I said.
30:06What really started to scale was our puff snacks and our yogurt melts and our pouches. Those started to really take off. And that's when we found flow. But we had so many challenges. Being able to imagine the impossible, that you're going to sell a company for hundreds of millions of dollars that you started from scratch, from nothing. I would go to sleep every night dreaming that we were gonna be a global company, that we were gonna be in service to young families that needed the better food alternatives to feel that, to feel, to go in a park and see our shape of puffs crushed in the, in the playground was so rewarding.
30:46We sold the business. We got it to 72, sorry, 60, 63 million in revenue and sold it for a large multiple. It was really exciting for us. It was incredible. It was amazing. I would say that felt like we did the impossible. It just, it's almost surreal. The hard part I would say was my relationship with my co-founder emotionally was, was hard. I struggled personally with that. I think co-founder relationships can be, you know, amazing and they can be the best and they can also be the hardest. and so that was hard for me to feel just work through a lot of the feelings that come with working through a partnership so I say that that's the that was the the low light the highlight was is what we created together I just have so much appreciation and admiration for what we built together so what did you learn from your experience about co-founding because I'm listening to the story of your first co-founder one meeting obviously I mean goes without saying but I'll say it but it's so obvious to listeners you're obviously both brilliant and at the very least capable uh obviously I appreciate not everyone has to be brilliant to be an entrepreneur sometimes you're just like more resilient than everyone else but you're clearly both exceptionally capable usually people wouldn't advise people to start a company the way that you described how you just you started it because trust and you need it's a relationship right and you but it's more complicated than most relationships because you can get out of most relationships quite easily so it's really most akin to a marriage where getting out of it is extremely complicated and so a lot of people just carry on what did you learn from the experience of how you chose your co-founder and how you kept the relationship going through thick and thin that helped you decide what the right framing was for a co-founder once again in a new company rather than just going alone?
32:45Yeah, well, I fundamentally believe in co-founder relationships. So I could not have done, first of all, the happy family was my co-founder's idea. So there was no way that that business would have been what it was without her. And then I would say us together, we really had a lot of strengths as co-founders and as partners. And I would say that it's so hard to decide to take that leap of faith to partner with someone. So I was really grateful that my co-founder of my first company was up for doing this with me. She took a bet on me. And I would say what got us through was just humor and the fact that she was very loyal to me financially.
33:29and you know we we had a lot of kind of we had some core loyalty there um and i we decided to be 49 51 partnership so i was the 49 she was the 51 my title was coo her title is ceo and uh and it was she did not want to think about um us as necessarily co-founders she wanted to be the founder. And then my role was COO. And so as the business scaled and became more successful, I would say that for me, my ego started, maybe I've wanted more credit, I wanted some credit for from an outward perspective, she was very much the outward face of the company. And I wanted to be more acknowledged, I would say.
34:17And it's hard to look at yourself and say, gosh, like, I wish I didn't have this ego. I wish I didn't care. But I did want to be mentioned. I did want to be included at times when I wasn't. And it became hard to look at myself and to realize that and then also to ask for support there and have it be a challenging question to ask. And so I would say when I went into my co-founder relationship with Rod, Rod and I have known each other for over two decades. He's married to my very best friend from growing up. And so I just have so much trust with Rod. And when we began, I said, we decided we should definitely be 50-50 partners.
35:00Because when you come up with an idea, that's so important. And it's also so important to honor the creation of that, bringing that idea to life. And really, when I think about co-founders, it's usually, it has to be a consensus anyway. You can't really say, I'm going to pull my one person, you know, I'm going to pull my 51 hat or card and just say, we're not going to do this, or we're going to do this. That just creates such dissent. And it really erodes what you're building together. And so it really always, whatever partnership it is, it usually shows up as 50-50 anyway. And that comes, some people give you advice and say, don't do that.
35:42Don't, have, you know, somebody needs to call it, somebody needs to have a vote, a final vote. But I think that it's the process of working together and really working out those debating and, and, and struggling together to figure out what's best for the company is where the beauty can come and where you can really build something successful. So with Rod, we, we decided to create the company 5050. And we really work to honor each other, I really am now I know how hard it is to be a number too and so I take that with every interview that I do I've worked to honor him and mention him and think about him as my co-founder because we really co-created Love Every together.
36:20It is amazing the self-awareness that you clearly have like it is uncomfortable to talk about I have an ego I also have this conversation with people and I think it's really really healthy be because I think um usually the front person is the person everyone assumes has an ego but everyone has an ego and it's so fascinating because you know it's almost like it's possible to do yourself a disservice by not admitting you have an ego um and although we'd all love to be Buddha atop a snowy mountain zenned out all the time it's just not practical and when you've created something and put a lot of effort in and you want to be seen it's actually really normal and I think it's really healthy for you to admit that publicly because in every relationship pretty much in business there's co-founders but it's not however hard you try it's super hard for to be evenly distributed in the awareness side 50-50 maybe in shareholding but one will always take the lead I think and actually sometimes that is still better as well you know otherwise a lot of like competing voices and noises so there's probably like half our listeners who are that person and can relate to the challenge as well and actually your point is you know you just want some recognition not none um I also really relate to your point on 51-49 versus 50-50 that's absurd um pulling weight on all decisions because it's 51 is it makes no logical sense there are some some decisions it makes more sense for you to have anyway thank you for sharing that um last question on that before we move on then so i read your notes on you said something along the lines of it was very hard being a second time founder and raising money how much stigma i know this is like a weird question because obviously on one side it's like look I appreciate no one's getting their little fiddle out for me now that I've made millions and I'm a successful entrepreneur and I'm going again but is that kind of a weird reality like it's very easy for people to feel sympathy for your problems when you don't have money yet when you have money that's like the one taboo that is impossible for anyone to try and understand that you're still a human being with emotions around and so people just don't bother they just skip that part because they're like well she's rich so who cares so the main thing that I'm trying to get to is a why start another company instead of just relax enjoy parenting enjoy your youth don't stress and two can you talk to us a little bit about why you think it was actually hard to raise money and start the second time?
39:11Yeah. I mean, the first one is just this company is just, I love everything we're doing with this company. It's just coming from such a deep sense of wanting to give. And I just want to give parents this experience, I believe so strongly in the early years as being so important for development and felt like I had had this experience with my own children and just really wanted to share it in a meaningful way. So it's coming from a very core place. And my husband would ask the question, are you sure we want to do this again? So if it was a financial answer, that's not what this company is about for us.
39:50It's very much a purpose and life purpose question. I would say the second thing is as related to identity, if you have a company, you've been successful, it's almost, or you've just been successful at anything. Let's say like You're a really good attorney and you're a partner at a firm and you're wondering about starting a business and wanting to do something different. It is very vulnerable to imagine failure when you've already had success. And that's just such a human thing, right? It's almost when you don't have anything to lose, you just try it, see what happens. But when you've had some success, it grips you a little bit more in your sense of self.
40:29And so for me, raising money the second time and going back to investors who've gotten a 20 times their return on the first company and seeing doubt in their eyes and having them wonder, did she just get really lucky the first time or does she really have it? Could she really make something of this new company? I don't, you know, nobody really understands the depths of your business model. They're really betting on you. And so to see them turn us away and say, nah, I did really good the first time. I'm going to just, you know, I'm going to skip the second company. I think she got lucky is where I think, you know, our minds go in assuming that that's what they're thinking.
41:09That's hard. That's vulnerable. But I think that then if you have that deep purpose and you really care about something, then you just overcome and you just keep pursuing your, you know, you just go to get the next yes or no. I mean, you do the normal fundraising process. But there is something a little bit emotional about if Love Every had been a failure, it would have almost tainted the whole happy family experience. Oh, she just got really lucky. Right. You know, how much of how much of what you said, how much of it actually being hard to raise is based on direct feedback you had versus like assumptions you're making?
41:44So I tell you my assumption. It was not what you said. Right. And that's why I'm challenging it. I'm so curious. my assumption is um people like VCs especially sometimes struggle to invest in second time founders because the hunger isn't quite there like there's a lot to be said for you having to make it work like you're all in it's your first company or your second or your third but you haven't made it yet and the hunger is there and you've got some experience and you just need to win. I've got some VC friends and they've explained to me there is that reality. People try not to be judgmental, but bias comes out in all sorts of unconscious and practical ways.
42:26And that's one of them, right? Is this person going to need it enough, want it enough to make a huge company? So how much of that do you think was a factor or do you think it was all based on what you said? So the question, I think that's very interesting. The question that we were asking was we raised from a lot of individuals at Happy Family. We actually had no institutional capital in that business. So it was all just people that we met along the way and people who knew people. And so there were individual decisions being made. Now, there's all sorts of reasons why somebody might invest or might not invest.
43:02And that gets down to the emotional part of fundraising, right? That there is like an emotional current of belief in yourself and belief in what you're bringing to the world, even though it isn't anything that anybody can see, touch, experience, feel yet. It's an idea. And so it's very vulnerable to have a company in your mind or in prototypes or some kind of version, but it's not what you ultimately are going to create. One day you might feel great about it. The other day you might not, depending on what somebody said about it. It's not out in the world yet. So it's not, doesn't have its own energy.
43:36I think this question of whether VCs, you know, the hunger in the first time, a second time, third time entrepreneurs, I think is a really interesting question. I think that you can see the hunger in someone when they're really building something out of a deep purpose and they're just care so much. And I care so much about this company. And we do, we all do here. And so we're doing this out of just a real sense of self and wanting to give back to parents and be a part of modern parenthood and helping children reach their best potential. So I think that institutional investors in Love Avery have seen that passion in me and in Rod and in our team.
44:18And they know that this is something that we are not going to stop until it's the best, biggest expression possible. Did you have to do an earn out? How long did you spend in between each companies like ending the last, starting the new? Take us a bit through the transition period in your life from ending one journey and starting a new one. Yeah, That's a great question. So Shazi and I each sold 40 % of our ownership and happy family when we sold the company and then we signed on for a three year earn out. And I stayed an extra six months because Shazi was having another baby and so wanted to cover for her there.
44:54And so that three years was a hard time. It was adjusting to being owned by another company and having the priorities that I believe for the business being different from what maybe the other company felt. And it wasn't in any sort of philosophical way. It was just more day to day. Like I had to make sure I responded to all the emails from Danone before I responded to my team. Right. It's like because I was trying to build trust with them. And that was hard for me to balance that after really. feeling so independent for so long. And then over time, you realize like, we have such a capable team that the team had it, and then you start to become irrelevant, but you're still supposed to be there.
45:35And I just so I would go through waves of that was what I created the climate co created the climate collaborative and really trying to still give back to the company and give back in ways that were, you know, ways that felt entrepreneurial or fresh or new. But the team was really taking the reins and you start to feel like you're not useful anymore, but you still need to be there. And that feeling can actually harm your self-esteem, I think, in a way, right? Like you just don't feel as capable. You're like, well, like they don't need me anymore. There's a grappling with that feeling too, right?
46:14Where you're like, I'm not needed. Wait, I built this. Like I'm not needed. Yeah, you're not needed. You're not adding a whole lot of value. But then the three years needed to be there. I think also meeting the financial threshold to sell the remaining 60 % was not easy. So we wanted to just get back to the same share price as what our investors got paid out and what we had gotten paid out for the 40%. We went from wanting to kill it on some kind of earn out potential to like, let's just get to baseline. and that was a good price for the business and that was sweaty at times meeting that threshold, but we did it.
46:58We got there. Moving into Love Every. So what was the period that you had between? So you finished, done your three years, you've got your exit, big holidays, fancy cars? Like, did you treat yourself? Like, did anything exciting happen? No, I just, I had, well, I had my third child who I have my B who I just adore all my children. So I was so, you know, excited to have had, um, be in 2015. And, um, I think, you know, I definitely in new years when, when it was the last sort of day for me to be, I celebrated with my husband, you know, just, uh, it's like, okay, I'm going to honor my future. But I think for me, it was really about building my self-esteem and thinking about the future for love every, and like believing in myself as somebody that I can hold a vision and accomplish that vision.
47:47I think my co-founder before really was the vision keeper. She was the inspiring one. She was the one that, and I was the doer, the COO, the operational person. And so for me, building up my sense of self as a person who can manifest an idea to life and appreciate myself for that. I did that all the time at Happy Family, but that wasn't my identity, if that makes sense. so now just being able to kind of believe in myself I think feel like that so I did but no holidays no I and my husband got a Tesla um we we um so that was exciting yeah but and then and then we we've recently moved so you know it's sort of like growing into um new space for our family but I would say there was um it was a lot more about getting really excited about building love Every was sort of that transition time I whirled right in to Love Every right after Happy Family.
48:46So talk to me about starting Love Every. Like did you go straight to investors? Like how much did you put in to start with? Like how does the practical side of starting a business in a very different way feel? Because this time you knew how to start, build, sell, exit, the whole thing. and most first-time founders don't get the full experience in one go so you have unique experience like broadly speaking and now you're ready to go again so how did you look to practically start it yeah so we so we did put in some of our own money rod and i decided to partner we that was the biggest thing was just securing that partnership with rod was the most important he had so many other options of what he could do with his next steps in his career and he chose to work with me So I was really excited about that.
49:36What was his deal? Who is like, what's his career? Yeah, he had been working at Opower, which is a recurring revenue company that's all about helping people save energy. And so it was a mission-driven company based in DC, had two exceptional founders that built that company. And he was on the executive team. He wrote the S1 for going public, but he wasn't a founder. So he was hungry. He wanted the founder experience. And he built the company from just 10 million in revenue up to over a billion dollar IPO. But I think that he was craving something, building something himself from the beginning.
50:14And I was hungry because I had not had my vision come. I had never experienced a vision that I had from the beginning come to life. And I felt so passionate about Love Every. And so we came together and each invested a few hundred thousand dollars. and we started just legal expenses, figuring out, we wanted to build, we actually thought, we tested building an app, a parenting app. I was really excited about doing this like kit experience, but we were testing that and we were wondering if there was a digital component to it as well. We started building our first product, figuring out manufacturing.
50:54So yeah, we were just both in our apartments or our houses, sorry, our houses with, you know, just thinking about building the company together and we would just meet. And then we soon decided that we wanted to raise outside capital. And I think that's a question. I knew that I didn't have enough capital to bring this second company all the way. And there is something kind of magical about taking in investor money because you do learn. It's a test of yourself, your vision, what you're putting forward. You then build a community around you that's all wanting you to succeed, whether that's individuals and angels or institutionals later, I think that you can become a little self-referencing if you finance it yourself.
51:40It also can be really exciting and you can have an even bigger win at the end. But again, for me, it wasn't quite as much about the financial big win at the end. It was more about the experience of building a company. And so we feel really grateful for our investors and our board members. And so, yeah, so we went to go raise that first angel financing round and started working prototype for a play gym. And yeah, surely that was easy. As in the first angel round, at the very least, the angel round, I mean, it came faster than than happy family, for sure. But I'm telling you, there were people that said no, and I was like, what?
52:17I you it's always happens that way. You always meet where you're like this person, I'm sure this person will invest because they have the capital they know me they and you know you can never tell you never know that's the the the the journey of fundraising is so can be so surprising at times and you really just have to continue to believe in yourself they go on the list jessica it's a little naughty list somewhere there might be a few i i mean i'm i i i i can present as very um warm and caring, which I am. And I'm also very competitive. Good. That is a perfect question. I can't help it. No, that's great.
52:58That's a perfect question for leading up to my next one. Who are you more competitive with? Other brands that you admire, and you think that you could be doing as well as them, etc, etc. Or you in your last business, and where you got it to, and you know, the things you're doing differently this time? I would say that we've surpassed the success of the last company. So I feel like I'm standing on the shoulders of all the experience I had. And Rod and I have a much bigger vision for Love Every. So that felt like even from the early days, our vision was bigger than where we kind of had where I had ended at Happy Family.
53:35I would say for competitiveness and thinking about other companies in the space, we have really built something unique. And I think that it's hard when you build something unique. You really do need to grab market share and you need to expand internationally and you need to invest and make sure that your marketing platforms are really giving that beautiful product its best foot forward into competing. and your best bet to build a competitive moat is to get distribution and get customer love and we have so much love from our customers which fuels us. Just now I think we're starting to see some people sort of picking away at some of the way that we approach books for example or even the stage-based learning.
54:22We have some competitors in different parts of the world and we're tracking that but I think that for us it's about staying really focused on what makes what we are doing next our pipeline and how we can really listen to our customers and continue to co-create with them that is really the magic of love every is being able to listen to our customers and and learn and do better even better than i think what we put out at first because as i said the the product development process is not done when you launch a product it continues after you launch so um in terms of like value creation and I've obviously, I'm sure you would agree, but I'll put words in your mouth.
54:59Your last valuation was$800 million, right? So almost a unicorn. And not many businesses in the world that have achieved such dizzying heights of valuations, value creation, et cetera. I guess, how do you feel with that pressure almost to deliver? Because what I would say is it still sounds like a very different, it's a different journey, right? your last business you exited for six you had 67 million dollars of revenue you were saying and you obviously had a really great exit but um i'm assuming you didn't raise over 100 million dollars with 67 million dollars of revenue otherwise much more stressful stressful exit times so there's just this like you said you're competitive i'm trying to get to the crux of like how competitive are you with yourself as well right because when you raise 100 million dollars at$800 million valuation, you're really, you know, you're really pushing your vision, right?
55:53You're really pushing yourself to go and do great big things. And I guess my question is, do you see that as that last funding round? Do you see that there's like multiple funding rounds to come? Like how big do you see this getting and how big does it need to be? Yeah, that's a great question. I mean, I think it needs to be, I think we need to serve children globally in early childhood. There is so much white space. There is so much need. And no company is really partnering with parents to help them feel confident every step of the way of their child's development. And so we now cover birth to age five.
56:28We're expanding those age bands. There are so many more ways that our customers are telling us that they want our partnership and our help with parenting and feeling like they're giving their child the very best start. So since children are children everywhere, we have a global opportunity. And since early childhood, really this concept of human potential is maybe one of the most important concepts that we can think about as people is where is our next generation being invested in and where are they going to take the world? That feels really important and feels really big. And then I think about, as far as a company goes from a business model perspective, we continue to have a core of this co-creation with our customers.
57:11We have core love. We have financial, the retention metrics are incredibly strong, best in class. We have a really good business. And so I would say that when I dream at night of Love Every, I am pushing myself harder to dream bigger. So think about multi-generational companies that are in service to a need. That is the vision that we think about for Love Every. And I think about expanding access to Love Every to children in the U.S. who are on public assistance. We think about how we can expand to all children. We think about how we can expand up to different ages. Again, think about different geographies.
57:56so it feels like there's a ton of headroom for us to go and grow and um i think for the from the next stage of the business ipo is is is one of the things that we're considering we would consider that maybe in 2025 or a little bit beyond when the markets change and when our business has grown a little bit i think for us it's about being patient with you know if you look at lego as a company. We just love Lego. We have a lot of Lego in our home. Or you look at some of these, you know, I think about that because it's in our space and it's a platform. And there's so much that can be done with those bricks.
58:34And there's so much brain growth and development that can happen. That company took a long time to get to where it is. It's been three generations. And so I think sometimes when you build a company, you launch it, you know, we launched an early learning program just five years ago as of this week. And so you get impatient. You're like, wait, it should be bigger. It should be bigger now. And I think that for me, it's about adjusting those expectations and saying, we're building it the right way. We're building it, you know, one step at a time. And we're not trying to get too taken by the pressure that financial markets can give you or the pressure that investors can give you.
59:07And we have great patient investors. They've been wonderful and happy with our growth. But, you know, if you grow 20 to 25 % year over year for you know 15 years that can really add up and so I think that that's the sort of mindset that I think we're thinking about and trying to make sure that our everything we do is purpose purposeful that there's a point and there's a reason why we're doing what we're doing for families for children amazing what's your biggest challenge personally um well a few things come to mind one is just continuing to um just evolve as the company evolves I really want to make sure that that I am of service to this company in all of its stages.
59:47And so that means growth in certain areas, I need to, you know, I, there's certain areas where I need to just start to accept, I think structure and accept the inevitable if it's from a legal perspective, or from an HR perspective, or whatever, you know, you have to evolve yourself with the company. From a personal standpoint, I think it's just being, you know, grateful and present and balancing my roles in life. So I'm a daughter. As we talked about, I'm very close to my parents. I want to be a good wife to my husband. I adore my husband. And it's hard being married to me. I have multiple companies and I've got an engine and it's running.
1:00:26And so I think that that can take up a lot of space in the family. Being a present mom, I just adore my children and I want them to know how important they are and finding time with all three of them. The more you have, the you have your love grows but your time doesn't and so it's um it's a balance i think and then and then my love for this company and i wake up in the morning every morning thinking about love every so it was just very passionate about what we're building here and balancing that with all these other roles how have you found the ability to balance that and i guess i am i'm really curious because people ask this question a lot and it's quite triggering and annoying question sometimes because it's like i just do but uh that's a lot i'm just wondering if you actually do have a very rigid schedule, for example, or something that we can learn from when we have many plates spinning like that?
1:01:15Yeah, well, I don't know that I'm, you'd have to ask my children and everybody else in my life how well I'm doing. But I would say that for me, I it's about what I'm not doing. So I, I love also, so it was endless, like I could, I could make the kids a great meal tonight, I could, I could make sure that their cubbies are organized, I could, you know, run, like, things could be tidy and, and we don't have a tidy home and we, I don't make, you know, we, we sort of scrambled together the dinners often. And we have a, we have a nanny who's very helpful and feels so grateful to her and she helps us a lot.
1:01:50Um, but I wish I was doing it myself. Like if I was doing it myself, I would have put, I would have changed, you know, that their lunches would look slightly differently. Their, the meal wouldn't look quite like, it's like you just, as a mom, often you want to do it all. You just want to own it all. You want to control it all because you care so much and you love so much. And so it is about letting go of some of those things. So, you know, letting go of having, you know, shopping for my daughter's clothes or, you know, making sure that she's got, you know, the right size underwear or whatever it is.
1:02:18Like I just, I kind of do let go of some of those things and that's hard to compromise. But I think in the not doing, you're also creating space. And then friendships, you know, are hard to balance at this stage. I would love to spend more time with friends. But so if I rank order my, you know, children and my parents who are getting a little bit older and my husband, you know, it's just like so hard to be everything to everyone. And then the CEO role. So trying to trying to balance it, but there is you do have to kind of accept that there's some things that you just aren't going to be able to do your way.
1:02:55I really relate to a lot of that. And I guess conscious of your time because you know all the things and you added an interview on secret leaders so question that I'd love to end with and I'd love your perspective on what lessons do you try to pass on or teach other entrepreneurs that you know helped you on your journey what is something that you could really pass on based on your experience yeah I would say just don't let customers become numbers. Don't get too up in your head about all of the sort of fancier parts of business, the things that sound good. Get really gritty and real about what it is that you're making, creating, the service you're providing.
1:03:36Make sure, test it with your customers. Get really gritty about that testing experience. The other morning, we were having some questions on conversion. I just woke up kind of six in the morning on a Sunday and I was like, I got to just buy our product. I got to go through the flow and record it and make sure on my phone that it's working and then somebody else's like, just stay really close to the customer and stay really connected to what you're building and the why and how that's helping the person that's receiving it. Amazing. Jessica, thank you so much for your time. I know it's limited. We're really grateful to have your insights.
1:04:10And to anyone that has a kid who hasn't yet experienced Love Every, please do give it a go. It's beautiful, beautiful product and experience and I think I heard you say um what already read in your notes you know that you've got two stakeholders really the parent and the child so you're always having to think about those two things from NPS from retention and everything else and I strongly relate my daughter is you know not fully saying loads of words just yet but I'm sure if she could communicate she would express the same as I do which is fucking great oh Dan thank you so much it was wonderful being with you Awesome.
1:04:45Thank you, Jessica. Thank you.
1:05:14podcast, Will Stollerman. See you next time.
From the publisher
Jessica Rolph is the Co-Founder and CEO or Lovevery which makes play kit subscription boxes for kids - and is one of Dan's favourite kids brands. It's also massive, valued at $800 million at the last count - and it came pretty quickly off the back of a challenging earnout she experienced with Danone having sold her previous company Happy Family for about $300 million. How has she done it?
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