Building Tatcha from Kyoto to $500M Exit

Opening: Founders may face tough decisions about selling their company during early stages.

\"We had two acquisition offers within a few weeks of starting the company... And I had no intention of selling... I was going to do it... just to pay everybody back... and then the acquirer pulled out.\"

Takeaway:

• Vicky considered early acquisition offers due to financial pressures.
• She ultimately continued growing the company independently.
• Founders should carefully weigh early exit opportunities.

Opening: Rapid growth can lead to operational challenges that require creative solutions.

\"I would come home and my house would be full of half-packed boxes... At one point, we lost the baby in the boxes.\"

Takeaway:

• Vicky managed inventory and shipping from her parents' garage.
• She faced challenges balancing home life and business operations.
• Founders should prepare for operational demands of growth.

Opening: Founders must grow as leaders to meet the evolving needs of their startup.

\"I hadn't grown into my own skin, I think as a leader... The results were there, but the confidence was not... It gutted me at that time.\"

Takeaway:

• Vicky struggled with confidence in her leadership role.
• She recognized the need for personal growth as the company expanded.
• Founders should invest in their leadership development.

Opening: Crafting an authentic brand narrative can overcome initial skepticism and attract customers.

\"I was so fortunate in that I had sort of the holy grail of press... and we sold exactly one serum... No retailers wanted to carry us and they said, I don't think this is interesting or compelling... So I just told the truth of their story.\"

Takeaway:

• Vicky faced rejection but remained authentic in storytelling.
• She focused on sharing genuine experiences to build her brand.
• Founders should leverage authenticity to connect with audiences.

Opening: Developing proprietary products can set a company apart when existing solutions aren't available.

\"I did go to labs in Japan and say, do you have formulas like this... And they said, no, we don't make formulas like that... So that's why I had to find my own scientists.\"

Takeaway:

• Vicky couldn't find existing formulas matching her vision.
• She invested in developing unique products from scratch.
• Founders may need to create proprietary solutions to meet market gaps.

Opening: Building long-term relationships can provide stability and trust for a growing company.

\"I did get very, very, very blessed with amazing people... our scientists from day one are still our scientists today, our packaging partners from day one are still our packaging partners today...\"

Takeaway:

• Vicky cultivated lasting partnerships with key collaborators.
• Consistent relationships contributed to Tatcha's success.
• Founders should value and nurture early partnerships.

Opening: When traditional funding is unavailable, founders may turn to friends and family rounds to support growth.

\"I went to my mom and my dad... Stanley, my co-founder, and then some people who eventually started working for Tacha, they invested as well... over the course of a few rounds, it added up to a million.\"

Takeaway:

• Vicky raised funds from personal networks to finance development.
• She leveraged support from co-founders and early employees.
• Founders can consider friends and family financing to advance their startup.

Opening: Persistence can open doors with major distributors even after multiple rejections.

\"I begged and begged and begged... for an introduction [to QVC]... I was turned down... at least 4 times... finally... they gave me a chance... and we sold out.\"

Takeaway:

• Vicky didn't give up after multiple rejections from QVC.
• Her persistence led to a breakthrough opportunity.
• Founders should relentlessly pursue key partnerships.

Opening: Innovative marketing strategies can help founders gain exposure when traditional avenues are unavailable.

\"I went to the library... wrote down the names of the editors and... started sending out care packages with handwritten letters... just with the blotting papers... And that was where the press coverage started coming from.\"

Takeaway:

• Vicky did her own PR by personally reaching out to editors.
• She leveraged limited resources creatively.
• Founders can generate buzz through personalized outreach.

Opening: Finding that initial products aren't enough can prompt founders to innovate and find true product-market fit.

\"Was it clear to you that you could make a go of it just by selling blotting paper...? No, it was not... It was not a business... That's exactly right. And then I started working with scientists to develop these formulas.\"

Takeaway:

• Vicky realized blotting papers alone weren't sustainable.
• She expanded her product line to meet customer needs.
• Founders should adapt and innovate to find product-market fit.