Assertion Not checkable as stated
A private equity firm demanded controlling interest in exchange for 17% equity
“They're asking for a controlling interest in your company for a 17% of your equity, you know.”
Assertion Not checkable as stated
A 2X participating preferred term blocked Serena & Lily from raising capital
“One of our other major investor on Sandhill Road came up with the capital. They actually put the money into the company on top of our cap stack, on top of the capital chart, At a very heavy duty preference of a two X preferred participating, very gnarly securi…”
Assertion Not checkable as stated
Maveron told Serena & Lily they wouldn't even fund Starbucks in 2008
“In fact, Maveron, who was, you know, came from the money of Starbucks, they told us that if Starbucks had walked in their door right now, they wouldn't fund them.”
Assertion Not checkable as stated
Mandatory employment contracts saved founders from board-forced company sale
“Listen, we, the board could have voted to sell the company because they had enough votes around the table that were incentivized to sell the company.
The problem is that the acquisitions were requiring us to sign three year employment contracts.”
Assertion Not checkable as stated
Founders used an 'oversold' pretext to secure 50% deposits from wholesale buyers
“So, we're like, hey, why don't we call all of them? And let them know that we are in an oversold situation with our initial production, and if they would like to guarantee their order, they would have to provide us a 50% deposit on their order. And the oversol…”
Assertion Not checkable as stated
Serena & Lily direct-to-consumer revenue doubled annually to $20M in year three
“The first year we were direct-to-consumer, we did five million dollars.
The second year we were in direct-to-consumer, we did ten million.
It doubled.
That third year we were in direct to consumer, it went to twenty million.
Like, we had a five, 10, 20 sprint.”
Assertion Supported
Wendy Bellissimo dropped 600-800 specialty retailers for a Babies 'R' Us exclusive
“Wendy Bellissimo, who had a, probably, 600, possibly 800 independent specialty stores selling her, Beautiful premium crib bedding. Literally faxed down her entire independent channel, thanking them for their amazing patronage for the last X number of years, an…”
Assertion Not checkable as stated
Serena & Lily secured $100,000 in wholesale orders within weeks of launch
“At the time, we sold everything as a three-piece crib set, which was the bumper, the sheet, and the dust ruffle. And the dust ruffle, ok. Yeah. It was very premium crib bedding, and we had a minimum order requirement of four crib sets, so it was basically a mi…”
Assertion Not checkable as stated
Kanter funded cash shortfalls via loans to preserve Dugan's 50% equity
“I always kept Serena as my 50% partner, and we booked this infusion, if you will, as a due to Lily Cantor, so that we had a liability on our books, but not.”
Assertion Not checkable as stated
Kanter and Dugan took no salary for three and a half years
“Now, keep in mind, we haven't taken a salary now for three and a half years”
Assertion Not checkable as stated
Founders raised a $1.5M friends and family round in 17 days
“I mean, Serena chased down every one of her friends, and I would say half the money came in from Serena's friends, half the money came in from my friends, and we raised the money in a 17 day sprint.”
Assertion Not checkable as stated
In 2007, Serena & Lily had zero e-commerce sales across 600-800 stores
“100% wholesale. We had about 600 to 800 stores. We had zero online. We didn't even have a shopping cart on our website, so there was no direct-to-consumer happening for us”
Assertion Not checkable as stated
The 2008 financial crisis wiped out 50% of Serena & Lily's wholesale
“And oh shit, there's a financial meltdown that literally took out 50%
Of our wholesale channel.
Shut down.”
Assertion Partly supported
Williams-Sonoma and Restoration Hardware saw 30% revenue contractions in 2008
“I mean, I think some of the larger players like Williams-Sonoma and RH, I mean, they were contracting in at the magnitude of like 30% contraction.”
Assertion Not checkable as stated
Serena & Lily maintained a 70% CAGR over a seven-year period
“We had a 70% cumulative average growth rate over a seven-year period, and honestly, to Sand Hill Road, Like, we were a slow grower.”
Assertion Not checkable as stated
Serena & Lily recapitalization offered existing investors over a 3x return
“Many of them were making, at that point, over a three X, and they could sell their shares, or they could convert to common, and they can ride along in the car with us.”
Assertion Not checkable as stated
A new family office acquired over 50% of Serena & Lily
“Yeah, it was definitely over 50 at that point.”
Assertion Not publicly verifiable
Mill Valley Baby expanded into a 3,000-square-foot store in four months
“July of 2002, we opened our baby and kids' store called Mill Valley Baby, and by November of 2002, we moved down the street to a nearly 3000 square foot store.”
Assertion Not checkable as stated
Kanter and Dugan launched Serena & Lily as 50-50 partners with $50K
“We spun it out as a separate company. We were fifty-fifty owners. I told Serena I'd put 50,000 dollars into this business. We'd be equal partners.”
Assertion Not checkable as stated
Serena & Lily convinced an LA printer to run 15-yard fabric samples
“We got the name of an agent that can help us in Los Angeles find a printing source that can print our fabric for us. So we literally, you know, talked him into Taking a risk that we were going to be this multi multi-million dollar brand one day, and can you pl…”
Assertion Not checkable as stated
Serena & Lily built its initial wholesale mailing list via screen scraping
“She came over and started working full time for Serena and Lily, and she I think they use the word screen scraped. She screen scraped the entire internet for every retailer that would be the right place to get our crib bedding into their store and produce mail…”
Assertion Not checkable as stated
Hamptons store put Serena & Lily on the map with NY media
“Was it the right choice for our first store? Probably not, but you know what? It put us on the map with every, a major media, New York.”
Disclosure
Kanter asked new majority shareholder to find a CEO to replace her
“I said to the new owner, the new majority shareholder, I said, listen, this brand needs someone who can really scale it, and I hadn't really spent enough time with my children at this point, and I wanted to spend more time with them, and so I kind of said I'd …”
