The CQ: The Startup Industry's "Giant Pressure Cooker" With Mental Health Challenges
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By Forerunner, @ForerunnerVC
Earlier this week, our Founder and Managing Partner Kirsten Green spoke at Fortune Brainstorm Tech alongside Andy Dunn (Founder of Bonobos, acquired by Walmart, and now Founder/CEO of Pie). The two dug into a topic of utmost importance, which is seeing a sharp rise in awareness and conversation — and yet is still under-discussed and underserved in the big picture: mental health in the startup community.
When it comes to addressing mental health, we believe two things to be true. First, as a society, we need to remove stigmas — and one of the most effective ways to do so is to re-contextualize them by putting a face to an issue and how proper treatment can make all the difference. Ultimately, people be can’t be what they can’t see — and few things are as visible and relatable as human authenticity. This is how Andy is leading and it’s already made an impact on so many. But the onus isn’t just on those who have deeply struggled to be public — it’s on leaders and peers of all kinds to more honestly show up and address the many shades of emotional wellbeing on a more regular basis.
Secondly, the startup community needs to better understand the balance of pushing people when it’s healthy and when it’s not. There is always a place for urgency that empowers and unlocks potential, but it can be done without losing sight of the fact that company leadership is stressful enough — often cripplingly so. There’s the hard reality that our society is getting more complicated with heightened pressures and visibility, and the startup world is becoming more competitive and grueling in such a tough economic climate. As Kirsten put it on stage, the startup world can be “a giant pressure cooker” for mental health challenges.
See the full interview and feel free to share it with others who it might resonate with.
What We’re Talking About on Slack:
Dan Hockenmaier, Head of Strategy and Analytics of Faire, breaks down how transaction costs are the key to determining which marketplaces will succeed and where, as well as how to monetize them. “When marketplaces enter an industry for the first time, they win because they remove transaction cost relative to analog options. When a marketplace disrupts an older one, they win because they remove more transaction costs than their predecessors.” A few key insights: 1.) In most industries, the “free lunch” value creation opportunities are exhausted. 2.) To challenge incumbent marketplaces, look for sectors where transaction costs remain AND that can be made much more efficient than the current solution. 3.) By far the largest unsolved transaction costs remain in the services industries, like freelancing and home improvement.
The checking account war is over (and the fintechs won): according to a new study, 47% of Americans opened checking accounts with fintechs and digital banks in 2023, with Chime and PayPal together dominating 43% of digital bank and fintech account openings and 20% of all new checking accounts. Since 2020, digital banks’ and fintechs’ share of new accounts grew from 36% to 47%, while the megabanks’ share dropped from 24% to 17% and regional banks’ share declined from 27% to 21%.
By 2050, the number of people with diabetes will practically double to 1.5 billion globally, predicts a new study. The majority of those diagnosed will have type 2 diabetes, and researchers found that obesity was the number one cause in every country with related factors playing a role, including greater availability of shelf-stable and high-calorie foods, less financial means, and limited access to healthy options, in addition to global aging, lack of exercise, poor sleep, and increased stress. “It is clear that we need to rethink the way we are currently trying to address diabetes prevention. Type 2 diabetes and obesity are complex issues with both behavioral and structural factors that intersect.”
As we begin to see the effects of climate change with record-breaking, high-heat temperatures and a growing number of weather-related deaths, the quest for personal cooling technology is on. Researchers and scientists are seeking new solutions for those who are particularly vulnerable — farmers, factory workers, first responders and others who labor outdoors — with bonus points for products that are highly efficient and lightweight enough to carry or wear. A few enterprising ideas so far include wearables using thermoelectric technology, a hairlike fabric inspired by the Saharan silver ant, and a multilayered material that mimics the evaporative and cooling qualities of a camel’s fur. Similarly, the race to create a more efficient air conditioner with fewer emissions is just as pressing. There’s even a new reflective white paint that can help cool buildings.
While advertising isn’t currently allowed on Instagram's Threads, Instagram’s branded content tools are on the way. Head of Instagram Adam Mosseri said the social media platform is avoiding news and political content creators, making Threads more of “a brand-safe bet for marketers.” “Without being able to rely on paid promotion, brands and professional creators need to focus more resources on creating buzzy organic posts that can go viral.”
The New Yorker discusses how E.R.s are getting revamped to handle the mental health crisis with the addition of EmPATH units (short for Emergency Psychiatry Assessment, Treatment, and Healing). Patients in crisis can be swiftly assessed by emergency department staff, then directed to one of the units for specialized psychiatric care. What makes these units different? Lounges designed with recliners and floor-to-ceiling windows, “sensory rooms,” snack bars, showers, exercise equipment, books, and games. “Instead of leaving patients to languish in an emergency room, caregivers offer them a calm communal environment where they can receive a comprehensive evaluation, start therapy, and, if needed, receive medication. Most patients stay for a day or two then the vast majority are discharged back home, instead of going on to a psychiatric facility.” There are only a few dozen around the country, but many more currently in the works.
Along with the demise of free returns, birthday rewards are getting rewarding, too. Axios details how a number of retailers, including Sephora, Dunkin’ and Red Robin, are belt-tightening and putting an end to their once-a-year freebie and switching to loyalty program perks instead, offering discounts and promotions. Shoppers should “expect to see more red tape — a minimum purchase, for example, or some kind of minimal engagement with the program before the birthday.”
Almost *80%* of adults said they planned to shop on Amazon Prime Day. Many shoppers consider it part of “little treat culture,” which has 114.4M views on TikTok and is all about seeking out small, inexpensive purchases as a form of self-care (a way to give themselves a boost in a tough economy). It’s essentially the lipstick effect but in Gen Z lingo.
In 2020, the fashion industry lost more than $50 billion in potential sales due to counterfeit merchandise. Designer superfakes are getting harder to tell from the real deal — even tricking experts. Unlike dupes, which are cheaper, similar products, superfakes are counterfeit knock-offs that infringe on a brand's intellectual property or trademark. But social media’s and Gen Z’s embrace of dupes has fueled the superfakes market. Purchasing these knockoffs isn’t exactly as easy as add to cart: There are entire Reddit threads dedicated to lists of superfake sellers or you would have to know someone who has bought a superfake to obtain a seller's contact.
Researchers have discovered that as people get older, their personalities change — and surprisingly, people’s biggest personality changes tend to happen before the age of 30 and after 60. One theory regarding older adults: when people have less control over their circumstances, whether due to things like loss of a partner, retirement, or health issues, they evolve to acclimate to their shifting life. “If someone is no longer strong enough to go to dinner parties every week, they might grow less extroverted; if someone needs to be more careful of physical dangers like falling, it makes sense that they’d grow more neurotic.”
Portfolio Highlights:
The Wall Street Journal reports that Kelley Morrell, a former executive at Blackstone, has been named Wonder’s new CFO as the company prepares to raise capital and go public.
Modern Retail discusses how Cotopaxi is focusing on retail as a growth strategy.
Business of Home reports that Faire is the “clear winner” in the online marketplace competition.
Fashion United announces the partnership of inclusive beauty platform Thirteen Lune and Catch.
Brian Evans, veterinarian and medical director at Dutch, is quoted in a Business Insider article on pet insurance.
A Glossier employee offers up tips on shopping the store to Bustle.
Fortune reports that Mark Zuckerberg has increased the number of hours he sleeps with help from the Oura ring.
Forunner Highlights:
Reuters covers the trend of a wave of VC firms, including Forerunner, moving from downtown San Francisco to the Presidio.
Forerunner founder and partner Kirsten Green and Andy Dunn, co-founder of Bonobos, appeared at Fortune’s Brainstorm Tech 2023 to talk about addressing mental health in the workplace.
Work at a Portfolio Company:
Category Director | Hims&Hers: Hims&Hers is a multi-specialty telehealth platform building a virtual front door to the healthcare system for numerous conditions related to sexual health, hair care, mental health, skincare, primary care, and more. This role will growth strategy for a specific category, sizing and prioritizing opportunities and projecting sales figures for new products.
GTM Strategy & Operations Lead | Faire: Faire is an online wholesale marketplace built on the belief that the future is local — independent retailers around the globe are doing more revenue than Walmart and Amazon combined. This role will define and build Faire’s European retailer go-to-market strategy, helping establish the roadmap and driving strategic initiatives to accelerate growth. This role is based in London.
Director of Community | Metafy: Metafy is reshaping the gaming experience where gamers come for the finest content and creators can transform their passion into profit. This role will lead a series of gaming communities, each with its own vibrant culture, its own shared language of inside jokes and strategies, fostering growth and engagement.
There are ~508 other openings on our jobs site. Check ‘em out.