Aug 17, 2026 · 1h 19m · how-i-built-this
Bobbie: Laura Modi. How a Baby Formula Startup Took Market Share From Two Industry Giants
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gold bands on the timeline = statements, start to end. Hover to read, click to jump. CC turns on captions
In this episode of How I Built This, Bobbie co-founder and CEO Laura Modi shares how she disrupted the monopolized American infant formula industry with a clean, European-style alternative. Modi details how she overcame deep investor skepticism, an early FDA product recall, and nationwide supply crises to build a values-driven brand that captured significant market share.
How this conversation actually went
Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Guy holds 35.1% of the talking time here. How this is scored →
Guy as informed peer 5.0 Guest teaching 4.1 Guest disagreement 1.6 Guy pushing back 1.6
speaking balance: gold is Guy, purple is the guest (3 minute bins)
Sharpest disagreement ▶ 1:15:09 Modi forcefully defends meeting government officials across administrations
Modi rejects customer criticism about meeting HHS leadership, arguing forcefully that feeding babies is fundamentally bipartisan and engaging regulators is mandatory for industry leadership.
Hardest push from Guy ▶ 38:09 Guy defends critical VC feedback against founder skepticismRaz refuses the conventional founder framing that dismissive VCs are simply closed-minded, explaining why brutal investor feedback provides indispensable market signal.
Biggest teaching moment ▶ 21:38 Modi educates Raz on the scientific discrepancies between US and EU formula standardsModi breaks down how Europe regularly updates nutritional regulations while the US stagnated for 40 years, citing specific biochemical data on iron over-fortification and DHA mandates.
Guy holds their own ▶ 1:13:53 Guy contextualizes conglomerate ownership and federal agency meetingsRaz demonstrates sharp industry knowledge by correcting the record on Reckitt's acquisition of Mead Johnson and setting up the complex political reality of HHS meetings.
the scores for every segment, with the reasoning behind each
| Chapter | Topic | Guy as informed peer | Guest teaching | Guest disagreement | Guy pushing back | Why |
|---|---|---|---|---|---|---|
| Growing Up in Westport and Practical Family Entrepreneurship | 4 | 2 | 1 | 1 | Guy Raz establishes rapport by chatting about Westport and the high-visibility clothing business run by Laura's family. The tone is lighthearted and warmly conversational. | |
| Relocating to California and Working at Google Finance | 4 | 2 | 1 | 1 | Raz asks about Modi's move to California and her time at Google Finance. Modi recounts the cultural contrast between Ireland and Silicon Valley and how day trading helped fund her first house. | |
| Joining Airbnb and Cultivating Entrepreneurial Ambitions | 5 | 5 | 2 | 2 | Modi shares her transition from Google to Airbnb and her emotional struggle with breastfeeding after becoming a mother. Raz asks clarifying questions about medical messaging around infant nutrition while Modi articulates the cultural stigma and shame new mothers face. | |
| Uncovering Outdated US Infant Formula Standards | 6 | 7 | 2 | 2 | Modi provides detailed comparisons between European formula standards and US regulations, pointing out that US standards hadn't been updated since the 1980s. Raz demonstrates good contextual knowledge of baby nutrition and industry duopolies while learning specific biochemical distinctions like DHA and iron ranges. | |
| Leaving Airbnb to Formulate Bobbie Full-Time | 5 | 4 | 2 | 2 | Raz inquires about the practical steps Modi took to leave Airbnb and start formulating a product while pregnant. Modi explains hiring scientific consultants and drawing on her Airbnb experience challenging entrenched monopolies. | |
| Mid-Episode Teaser: Confronting the FDA | 4 | 3 | 1 | 1 | Raz and Modi discuss the high cost and strict commercial testing standards required for formulating baby formula compared to typical food startups. | |
| Naming Bobbie and Pitching Skeptical Investors | 7 | 4 | 3 | 6 | Raz offers notable pushback when Modi recounts dismissive VC comments, arguing that harsh, honest VC feedback is often more valuable than polite non-answers. Modi acknowledges the feedback helped shape her resilience and market positioning. | |
| Welcoming a Newborn and Assembling an Unconventional Team | 4 | 4 | 2 | 1 | Modi explains choosing an operational and culture-focused co-founder from Airbnb rather than a traditional scientist or CTO. Raz explores her reasoning behind unconventional early hires. | |
| German Pilot Launch and the Sudden FDA Recall | 5 | 5 | 2 | 3 | Modi describes launching a German-manufactured pilot branded as companion formula and receiving a surprise FDA raid and national recall. Raz notes the delicate balance between Silicon Valley disruption and baby safety regulations. | |
| Partnering with Perrigo and Securing Growth Capital | 5 | 4 | 1 | 2 | Raz asks how Bobbie turned a public recall into a relationship with Perrigo and a 4 million dollar funding round. Modi details how an internal R&D champion reached out after appreciating their compliant apology letter. | |
| Pre-Launch Community Building and FDA Green Light | 4 | 4 | 1 | 1 | Raz and Modi explore the eighteen-month reformulation and FDA review period, during which Bobbie built a dedicated online community through their 'Milk Drunk' platform before receiving FDA approval in August 2020. | |
| Mid-Episode Teaser: Launch and Supply Scramble | 4 | 4 | 1 | 1 | Modi explains marketing restrictions and how Bobbie sold 16 million dollars in its first year, quickly exhausting inventory due to long manufacturing lead times. | |
| Relocating to Washington DC and the WIC Monopoly | 6 | 5 | 1 | 1 | Raz demonstrates industry knowledge regarding WIC program contracts and federal regulations. Modi explains how sole-source state contracts create institutional monopolies limiting consumer choice. | |
| The 2022 Formula Shortage and Pausing Customer Growth | 5 | 4 | 2 | 1 | Raz and Modi discuss the 2022 nationwide baby formula shortage sparked by Abbott's contamination recall. Modi details the difficult board-opposed decision to turn off new customer acquisition to protect existing subscribers. | |
| Acquiring Nature's One Facility to Secure Manufacturing | 6 | 4 | 1 | 1 | Raz tracks the acquisition of Nature's One manufacturing facility in Ohio. Modi explains the unforeseen multi-year lag and capital required to re-certify the facility with the FDA. | |
| Navigating Government Meetings and Political Polarization | 6 | 5 | 4 | 1 | Raz brings up the political sensitivities around meeting with the HHS Secretary. Modi delivers a firm, unapologetic defense of engaging with government regulators regardless of political polarization. | |
| Market Share Milestones, Future Vision, and the Role of Luck | 5 | 3 | 1 | 1 | Raz asks Modi about Bobbie reaching a 4 percent market share, future aspirations, and the balance between hard work and luck. Modi provides an inspirational summary of her vision. |
Statements from this episode (22)
Modi: First home was mainly funded by day trading proceeds
“My first home was mainly the proceeds of some day trading.”
Modi: No infant formula can replicate the magic of breast milk
“No formula could replicate the magic that is breast milk.”
Modi: US infant formula standards had not been updated since the 1980s
“The European nutritional standards that were governed by the EC were updating those standards every four to five years. And then I did the comparison to that over here in the US, and I realized the last time that the US updated their nutritional standards was …”
Modi: European regulations mandate higher DHA levels than US formulas provide
“DHA was not just mandatory in Europe, but there was a level that was higher than any formula was choosing to do here in the US.”
Modi: Spent nearly $200K in personal funds to develop Bobbie
“First, it was 50,000, and then it went up to around 80, and then I ultimately ended up spending close to 200.”
Modi tested early Bobbie formula prototypes on her own children
“Oh, I was able to test it on my own kids. And they all got different versions.”
Modi: Bobbie pitched 64 investors for initial seed round, getting 4 yeses
“I spoke to 64 investors. Every day I was on the phone making introductions, driving all across San Francisco with my baby bump, and pitching Bobby, and it, you know, the other things that happened during this period I hired a designer to develop the first look…”
Modi paid herself less than $50,000 after Bobbie's first funding round
“Our first round of funding, I gave myself my first salary, which was, I think I paid myself less than 50,000 dollars.”
Modi: Perrigo is the only non-integrated infant formula manufacturer in the US
“Perigo was the only, it is the only manufacturer of infant formula here in the U.S. Outside of the vertically integrated.”
Modi: Bobbie originally launched in the US positioned as a supplement
“Bobby brought it over as a pilot and decided to make what I thought was a very smart decision to position it as a supplement, as a companion formula to breast milk, which means that it moved out of the category as being the sole nutrition, and now it was in th…”
Modi: Bobbie launched with hand deliveries to 93 San Francisco families
“We only started selling it to San Francisco families, and we would personally go and deliver it. Remember, I remember very, we would have 93 customers.”
Modi: FDA issued a national recall of Bobbie's pilot product
“And they issued a national recall. Right there and then. Issued a national recall of what was a pilot”
Modi: Bobbie raised $4M after FDA recall to rework domestic manufacturing
“So we had an investor come forward that we had spoken to in the past as well, and they ended up funding the business another four million dollars, which allowed us to spend the next 18 months, get our product off the line at this facility and into the FDA.”
Modi: Anyone claiming an accurate pre-launch forecast is lying
“And anyone who says before they launch that they're setting a forecast they believe is accurate is totally lying. You're going out on a hope and a whim that there will be good reception to this and it will take off.”
Modi: Bobbie generated $16M in revenue in its first year
“We'd hoped we would do around four million, and we ended up doing, ah, 16.”
Modi: 50% of US babies on formula rely on WIC
“And the fact that 50% of babies born in this country are choosing a formula under WIC, which means they are limited by choice, huge opportunity to reform this program, but it starts with”
Modi: Bobbie is not yet large enough to serve WIC
“And it takes companies like Bobby to gain more market share, because the reality is, even though I want to see a change, I'm not yet big enough to be able to serve WIC either.”
Bobbie halted new customer orders during shortage against board advice
“I called my board. I'm going, look, here's a little bit of the dilemma. Most of them were like, this is crazy. Just keep the growth going. Like, these moments don't come around often. Like, great moment for the brand. But I went to bed that night, and I rememb…”
Modi: Bobbie went out of stock for seven months in 2024
“I still relied on my contract manufacturer to serve our essentially our demand for the next two years. And we went out of stock again in 24 for almost seven months.”
Modi: Regulated legacy companies must engage polarizing leaders neutrally
“And if we are building a legacy business, and we're doing this right, it will mean that we're going to be dealing with characters that are polarizing, it will mean we're going to be dealing with different administrations along the way, and our job is to remain…”