In startups as in sport, what matters is not just whether you win or lose, it’s how you play the game.
We at Lightspeed were investors in LivingSocial, shortly after the change from Hungry Machine. We rode the wave up, when the company became a unicorn. We rode it down as well, through rounds of layoffs. We lost money on the investment. A lot of money. I’d rather make money than lose it. I’d rather win than lose. But man, could the team at LivingSocial play the game.
The founders, and the current management, never lost sight of the core values of the company. They made strong moves. They stayed hungry. They surprised and delighted their customers. They regularly pioneering key innovations in the daily deals space. They valiantly battled with Groupon as the industry was born, trying to catch them from behind.
Ultimately, the two sided network effects favored the bigger player, which culminated in today’s acquisition of LivingSocial by Groupon. The consolidation makes sense. But it still stings.
I was asked recently if an unsuccessful company is a black mark against a founder or CEO. I replied that it depends on why the company was unsuccessful. Sometimes bad things can happen to good teams. There is a lot of luck in the startup world.
I think actions speak louder than words, and I’m very glad to have Aaron Batalion as my partner at Lightspeed as we invest together in the next generation of startups that are looking to make a dent in the world. His leadership, passion and expertise gained as a cofounder and CTO of LivingSocial position him to be an excellent investor and advisor to entrepreneurs about to embark on this crazy startup journey.
You win some. You lose some. But I’ll always be proud to be associated with the founders and the team behind LivingSocial.
Authors
