WhoBuilt

Avni Patel Thompson at the Seattle Female Founders Conference

May 4, 2018· 29 min· 2.8K views·Watch on YouTube

Speaker

Avni Patel Thompson, co-founder and CEO of Poppy, shares lessons on getting a childcare startup off the ground and growing it at the Seattle Female Founders Conference.

Turn a personal problem into a startup

Poppy connects families with vetted caregivers when they need childcare, drawing on people such as teachers, stay-at-home parents, and camp counselors. After her first startup, Papaya Post, struggled with customer acquisition costs and low lifetime value, Thompson heard parents repeatedly describe missing their village. She saw an opportunity to use vetting, matching, and scheduling to recreate some of that support.

Validate demand with a small test

With limited money and no technical co-founder, Thompson focused on the problem in front of her: proving families wanted the service. She set a four-week goal, recruited three UW students, vetted them, and invited 15 Madison Park families to request care by text. The first week brought four bookings; she used weekly growth targets and customer behavior to assess demand.

Build momentum before solving the next problem

Early demand helped Thompson keep Poppy running while she searched for a technical co-founder. She favored finding a co-founder who could shape the technology alongside her, and tested the fit with CTO Richard through six weeks of working together. Growth also helped Poppy’s YC application and fundraising by showing that customers wanted the service.

Grow into a sustainable company

After YC, Poppy raised a little over $2 million and shifted from survival toward building a team and a sustainable business. Thompson learned to prioritize commitment, resourcefulness, and mission fit in hiring, including when she hired a Poppy user to lead operations. When the original membership pricing proved insufficient, Poppy began taking a share of transactions; she says founders should explain such changes transparently to early users.

Make the founder role sustainable

Thompson recommends finding trusted people who can challenge a founder’s assumptions and using investor updates to create accountability. She also urges founders to decide whether they want the long commitment, make space for it with family, and take care of themselves. For her, yoga provides exercise, a mental break, and time to reassess.

Takeaways

  • Test demand with a time bound goal and the tools you already have.
  • Use early customer behavior to decide what problem to solve next.
  • Demonstrated growth can help attract a technical co-founder and investors.
  • Explain business model changes to early users and bring them along.
  • Protect time for rest and accountability as the company grows.

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