What Shutting Down Your Startup Feels Like

Poppy had to balance what parents could pay, what skilled caregivers needed to earn, and the company’s margin. As the service grew from a neighborhood operation to hundreds of caregivers and thousands of families, personal relationships gave way to a more standardized gig work model. The supply of capable caregivers was real, but many moved on over time, adding complexity to the business.

Poppy grew steadily, often around five to ten percent, but did not reach the faster growth Avni hoped to see. Revenue and about $2 million in funding gave the company more than three years to test ideas, including parent pooling and using stay-at-home parents as caregivers. With six to eight months of runway left, Avni weighed a pivot, an acquisition, and shutting down, then concluded that a pivot or sale was unlikely to serve the mission.

Avni shared monthly investor updates with the whole team, including the company’s bank balance and runway. She discussed uncertain choices with a small group of trusted advisers and team leads, then told investors and employees once she had decided. Investors were prepared for the news because they had followed the company’s economics and progress.

After the December 3 announcement, Avni focused on helping users stay connected with caregivers, supporting employees in finding jobs, and completing legal and accounting work. She chose to use the holidays to give the team and herself time to process the closure. After three weeks with family, she began thinking about what she wanted to explore next.

Avni remained interested in the problems facing parents and working mothers, though she had not settled on a specific next project. She explored coding, cooking, art, and conversations with parents while giving herself time to notice new ideas. She said Poppy served thousands of parents and hundreds of caregivers, even though it did not scale to millions.