20VC Being A Wartime Leader in a Time of Peace, Why Marketing Channel Diversification Is Like The Life of A Scientist and Why Small and Mighty Beats Loud and Weak with Ooshma Garg, Founder & CEO @ Gobble

In this episode of "20 Minutes VC," host Harry Stebbings interviews Ushma Gag, founder and CEO of Gobble, a startup that simplifies home cooking by enabling meals to be prepared in just 15 minutes. Ushma shares her journey from Wall Street to the startup world, her entrepreneurial background, and the inception of Gobble from a dark personal period that highlighted the significance of home-cooked meals. Despite the competitive meal delivery space, Gobble has thrived under Ushma's leadership, emphasizing slow and steady growth while maintaining a strong customer LTV to CAC ratio. Ushma also discusses the importance of aligning with investors who share the company’s long-term vision, as exemplified by her tenacious pursuit of early investment from Keith Raboy. The conversation touches on the challenges of scaling marketing efforts, the potential pitfalls of rapid expansion, and the strategy of survival as a measure of success in the volatile food delivery industry.

• Ushma Garg is the founder and CEO of Gobble, a startup designed to help people cook fresh, homemade dinners in 15 minutes.
• Gobble has raised over $30 million from notable investors such as Initialized Capital, Keith Rabois, Reid Hoffman, Founder Collective, Felicis, Andreessen, and Thrive.
• Ushma previously founded Annapata, an online job matching service for students, which was acquired by LawWorks.

"I'm very excited to welcome Ushma Garg to the hot seat today. Ushma is the founder and CEO at Gobble, the startup that allows you to cook a fresh homemade dinner in just 15 minutes."

This quote introduces Ushma Garg, her company Gobble, and its value proposition of quick and fresh meal preparation.

• Ushma briefly interned on Wall Street due to parental pressure but was more inclined towards entrepreneurship.
• Her entrepreneurial spirit was evident from childhood through various initiatives, such as starting student groups and selling Girl Scout cookies.
• Attending Stanford in Silicon Valley, she engaged with startups and eventually founded her own company.

"Starting Gobble surprised me. I interned on Wall Street for just a hot minute for two summers more out of parental obligation to explore a steady and stable life."

This quote explains Ushma's initial foray into Wall Street and her realization that her true passion lay in the entrepreneurial world.

• Ushma's family background in nutrition and the tradition of home-cooked meals influenced her significantly.
• Feeling disconnected from her roots while running her first company led to a dark period in her life.
• The "aha moment" for Gobble came when her father visited and fed her home-cooked food, which reignited her sense of purpose.

"My family ate together every single night growing up... My dad is the head of nutrition at UT Southwestern in Dallas, Texas... that became my mission. From that day in 2010, the mission became integrating home-cooked food into the life of very busy people."

This quote highlights the personal experiences and family influence that inspired the mission and creation of Gobble.

• The meal delivery industry is highly competitive, with many companies coming and going.
• Ushma believes in a "small and mighty" approach, focusing on strong fundamentals over rapid, unsustainable growth.
• She emphasizes the importance of maintaining core metrics such as LTV to CAC ratio and cash management.

"Small and mighty beats loud and weak... It's a bit like the tortoise and the hare."

This quote summarizes Ushma's philosophy on building a sustainable business in a competitive market, favoring steady growth over rapid expansion.

• Companies that pushed for rapid growth often faced challenges when market conditions changed or their industry became unfavorable.
• The blame for aggressive growth tactics can be attributed to both founders and venture capitalists (VCs).
• Founders are eager for quick success, but this is often accompanied by a high risk of failure.
• VCs operate on a different model, investing in multiple companies and hoping for a few to succeed significantly.

"I think that the entrepreneurs are very excited to get big very quickly, and people by nature want shortcuts, and they would rather not do the hard thing." This quote illustrates the mindset of entrepreneurs who desire rapid growth and success, often preferring quicker, less strenuous paths to achieve their goals.

"But for the entrepreneur, you only have r1 bet and it's just like this big Powerball mega millions lottery that's happening right now." The quote emphasizes the high-risk nature of entrepreneurship, where founders often have only one chance to succeed, akin to a lottery.

"I would rather do everything I can to have a guaranteed multibillion dollar outcome than a 1% chance at an overnight multibillion dollar outcome." This statement reflects a preference for a more calculated and assured approach to business growth, as opposed to relying on luck for immediate success.

• Gobble's early growth was significantly driven by word-of-mouth.
• As the early adopter market becomes saturated, it's essential to diversify and iterate on marketing strategies.
• The approach to marketing should be scientific, involving many small experiments and patience.
• It's crucial to manage and iterate on each marketing channel, similar to nurturing plants from seeds to fruition.
• Diversification in marketing channels is key, as demonstrated by Gobble's VP of Marketing, Robin Rifo, who reduced reliance on Facebook and explored other avenues.

"Like a venture portfolio, you are planting a lot of seeds, but unlike a venture portfolio, it is your sole responsibility to iterate on each of those seeds, water them and check them every single day." This quote compares the process of marketing to managing a venture portfolio, highlighting the marketer's responsibility to constantly tend to and improve each channel.

"And then only months and then years down the line, you see all of the fruit on the trees of the seeds you planted long before." The quote emphasizes the long-term nature of marketing efforts and the time it takes before seeing the results of early initiatives.

• Companies must innovate in product, marketing, distribution, and cost management to excel.
• The process of establishing a market fit and succeeding in marketing and distribution is challenging and saturated.
• It's important to be strategic, dedicated, and ambitious in marketing efforts.
• There are no easy or free marketing channels, and long-term success requires finding "blue oceans" within saturated markets.
• Diversification in marketing channels is crucial for sustainable growth.

"Our product innovation and product market fit moment took some time and it took that thousand days to product market fit." This statement refers to the lengthy and challenging process of achieving product-market fit, which is a critical step for a company's success.

"But if you want to grow long term, you can find blue oceans in these saturated marketing channels for yourself." The quote suggests that despite saturation, there are still untapped opportunities ("blue oceans") within existing marketing channels for those who are willing to look for them and grow strategically over time.

• There is a common mistake of conflating execution with market opportunity, leading to a misunderstanding of market potential.
• Many successful companies have been built over decades, indicating the direct-to-consumer market is still in its early stages.
• Venture capital may prematurely judge markets as played out, but industries like CPG are excited about the shift to direct-to-consumer models.
• Specialization allows for a deeper understanding of market nuances and the identification of multiple opportunities within an industry.

"This direct to consumer market is still in its first decade. It's five to maybe six or seven years old, depending on the sub industry." The quote highlights the relative youth of the direct-to-consumer market, suggesting that there is still much growth and development to be expected.

"So that you can look under the hood, because people eat in many different ways. And it's a multitrillion dollar industry where there's multibillion dollar companies in fast food, in grocery, in delivery." This quote emphasizes the importance of understanding the complexities and diversity within a market to uncover various opportunities for growth and success.

• Survival is a critical measure of success, especially in businesses with both offline and online components.
• Companies need to be mindful of costs and manage them effectively to withstand industry downturns.
• Being the last company standing, rather than the best today or tomorrow, is the ultimate measure of success.
• The focus should be on long-term survival and adaptability, not just short-term victories.

"Winning and success is being the last person standing. It's not being the best person today or tomorrow. It's being the best person at the end of the day." This quote defines success as the ability to outlast competitors and remain viable over the long term, rather than achieving immediate but potentially fleeting success.

• Aligning team hires with the company's vision and culture is crucial.
• Garg's company culture avoids being showy and focuses on sustainability rather than short-term explosive growth.
• Employees are sought who desire long-term employment and believe in the company's mission.

"Yeah, I think that you have to hire a team that aligns with your vision and that has the same culture as you."

This quote emphasizes the importance of recruiting individuals who share the company's values and long-term goals.

• Sustainable growth is preferred over rapid, unsustainable expansion.
• Employees are expected to find fulfillment in contributing to a business that offers both a mission and financial opportunities.
• The founder's role includes sharing a long-term vision to inspire patience and ambition among the team.

"But we're building a company with people who want a job for the rest of their lives, and they believe in the mission of what we're doing."

This quote highlights the company's focus on creating a stable and mission-driven work environment that employees can commit to for life.

• Compounding growth is a strategy that requires patience and vision.
• Steady growth can lead to significant outcomes over time.
• Founders must communicate long-term objectives to the team.

"I think a lot of entrepreneurs and a lot of people in general don't fully grasp and embrace the benefits of compounding."

Garg suggests that many entrepreneurs overlook the power of compounding, which can lead to substantial growth when understood and applied over time.

• Identifying the right time for aggressive growth involves several factors, including seasonal trends, team readiness, infrastructure, and financial resources.
• Discipline in raising funds and setting expectations has been beneficial for Garg's company.

"Yes, you do have that time. I think every company does."

Garg acknowledges that there is a strategic moment for every company to accelerate growth, but it must be carefully timed and planned.

• Aligning with investors who share the company's vision is key.
• Garg highlights successful relationships with investors like Gary Tan and Keith Raboy, who are deeply invested in the company's future.
• Investors' personal engagement with the product, such as using it in their family activities, is a positive sign.

"What I think I did really well is work with investors who are very aligned with our vision."

The quote underscores the successful strategy of partnering with investors who support and believe in the company's long-term vision.

• Being transparent with venture capitalists is crucial for fostering alignment and avoiding future conflicts.
• Continuous learning about the business can reveal even greater opportunities.
• The more an entrepreneur understands their business, the more they realize its potential and unknowns.

"I think it's important to be as upfront with potential venture capitalists for you as possible, and to be radically transparent, listen radically, be candid and just really share your vision for the company."

Garg stresses the importance of honesty and clarity in communication with potential investors to ensure alignment and understanding of the company's direction.

• Garg describes herself as deliberate and unstoppable when she knows she is making the right decision.
• She recounts the persistence required to secure investment from Keith Raboy, despite initial rejections.
• Networking and leveraging connections played a crucial role in eventually getting Raboy's attention and investment.

"So in a micro fashion, that's what happened with Keith. I was researching angel investors for our company, and at the time, Keith was at square and he had been involved in Yelp and he had been angel investing in a number of other consumer companies."

This quote provides context for Garg's targeted approach in seeking out Keith Raboy as an investor due to his relevant experience and potential alignment with her company's sector.

• Ushma Garg demonstrated significant tenacity by agreeing to meet a venture capitalist at short notice and traveling quickly to the location.
• Despite being an hour away, she claimed to be nearby to secure the meeting.
• Her determination and preparation for the meeting resulted in a commitment and investment from the venture capitalist.
• This initial meeting and investment catalyzed their seed funding round, leading to further success and a long-term relationship with a prominent venture capitalist.

"And I did the common entrepreneurs and saleswoman's trick of, yeah, I'm absolutely nearby, but I was an hour away and had to speed down 101 as carefully as possible and arrived at square just kind of out of breath and trying to act like I was just around the corner."

This quote illustrates Ushma's quick thinking and willingness to go the extra mile to seize an opportunity, which is a common tactic among entrepreneurs to make important connections.

"And by the end of the meeting, we had commitment and investment. And then he was messaging folks like Reed Hoffman, who then came in, and other folks, and that really started our seed round in a really high quality way that obviously then years later led to our series b and a long term relationship with one of the best venture capitalists in the industry."

This quote emphasizes the successful outcome of her meeting, leading to further investments and the start of a fruitful seed round, highlighting the importance of building strong relationships with investors.

• Ushma's favorite book is "The Wind-Up Bird Chronicle" by Haruki Murakami.
• She appreciates magical realism and the unique perspectives it offers on people and situations.

"My favorite genre is magical realism, and I love the way that we can learn about people in situations from writers like Toni Morrison, Haruki Murakami, Garcia Marquez, with the creativity in which they describe the world."

The quote reveals Ushma's literary preferences and her admiration for the depth and creativity found in magical realism, indicating how literature influences her thinking.

• Ushma values diversity in her company, citing it as a key factor in their success.
• She would like to see more diversity in Silicon Valley, both among companies and investors, to enhance learning and innovation.

"So I'd love to see a lot more diversity in Silicon Valley, both in companies, in investors, and also just in people, so that we can learn more from artists and musicians and scientists in our daily lives."

This quote highlights Ushma's belief in the benefits of diversity for fostering a more creative and dynamic environment in the tech industry.

• Ushma often refers to a quote stating that startups die of suicide, not homicide, emphasizing the importance of execution in the startup industry.

"I often say that startups die of suicide and not homicide. That is a pralgram quote, and essentially it describes our industry very well. No one is going to kill you. There's trillions of dollars for the taking, and everything is about execution."

The quote underlines the idea that startups fail primarily due to internal issues rather than external competition, stressing the significance of effective execution.

• In stressful situations, Ushma prefers to lean into the discomfort and address problems head-on.
• She compares her approach to firefighters running into a fire, suggesting that confronting issues directly is the most efficient way to resolve them.

"So I just teach myself to lean into it and go into it head on because then it'll be over as soon as possible."

This quote conveys Ushma's proactive strategy for dealing with crises, which involves facing challenges immediately to resolve them swiftly.

• Ushma believes the food industry is only beginning to tap into its potential market.
• She sees opportunities for international expansion and serving a broader income demographic.
• Gobble's recent deal with Walmart is a significant milestone, and there are upcoming announcements that will impact the company and industry.

"And we just recently closed a deal with Walmart, which has kind of launched us into a new realm where other partnerships are coming our way and helping us establish these moats with exclusive access to millions of people who could use gobble."

This quote indicates the strategic importance of the Walmart deal for Gobble, suggesting it will lead to further partnerships and market expansion.

• Harry Stebbings endorses various companies and platforms, including Hims, Terminal, and Joist, highlighting their services and benefits.
• He mentions special offers for listeners and encourages them to check out the mentioned brands for their personal and professional needs.

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This quote is part of Harry's promotion for Hims, a wellness brand for men, emphasizing the convenience and proactive solutions it offers.

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Harry uses testimonials from well-known customers to vouch for Terminal's services in building remote technical teams, enhancing credibility through third-party endorsements.