Podcast Summary: How I Built This with Guy Raz – Episode: BARK: Matt Meeker

Introduction

In this engaging episode of How I Built This, host Guy Raz sits down with Matt Meeker, the co-founder and CEO of Bark, to explore the journey of building one of the most iconic brands in the pet industry. The conversation delves into Matt's entrepreneurial experiences, the challenges faced while growing Bark from a subscription box service into a multifaceted pet care company, and the personal motivations that drove him to succeed.

Matt Meeker’s Early Career and Previous Ventures

Matt Meeker's entrepreneurial spirit was evident early on. Before founding Bark, Matt and his partner launched a pioneering venture in 1999—a credit card-sized device capable of sending and receiving text messages. Although the business lasted only 18 months, it provided Matt with valuable lessons on what not to do when starting a company.

Founding of Meetup

Following the failure of his first startup, Matt co-founded Meetup alongside Henrik Wordelin, inspired by the sense of community and connection he witnessed post-9/11. Matt recounts pivotal moments during this period, including their collaboration at the Summit Series conference where the spark for Meetup was ignited. Their mission was to create a platform that fostered real-life connections around shared interests, addressing the growing societal disconnect highlighted in Robert Putnam’s Bowling Alone.

Founding of Bark (Barkbox)

In June 2010, Matt adopted Hugo, a Great Dane who would become the inspiration behind Bark. Frustrated by the limited availability of products for large dogs, Matt identified a gap in the market for high-quality, curated pet products. This realization led to the creation of Barkbox in December 2011—a subscription service delivering toys, treats, and other dog-centric items. Matt humorously shares the early days of assembling boxes by hand and the playful mishaps that added character to the brand, such as a misspelled holiday note.

Challenges and Growth of Bark

Bark rapidly gained traction, especially with innovative marketing strategies like leveraging Groupon for initial subscriber growth. By 2013, the company boasted 15,000 subscribers and attracted attention from major political campaigns, propelling Bark into a prominent position in the pet industry. Matt emphasizes the importance of focusing on core strengths—specifically, dog toys—and resisting the urge to diversify prematurely into areas like cat products.

Financial Struggles and Exit of Matt Meeker

Despite substantial revenue growth, Bark faced significant financial challenges. By 2018, the company was burning through $30 million annually, leading Matt to reassess his role. Overwhelmed by the responsibilities of managing a growing team and the impending strain on his personal life, Matt decided to step down as CEO in 2020. This decision was influenced by both personal considerations—such as the impending loss of his beloved dog, Hugo—and professional aspirations, including his reluctance to lead a public company.

Adoption of Hugo and Inspiration for Bark

Adopting Hugo marked a turning point for Matt, deepening his commitment to creating products that catered to large dogs. Hugo’s needs highlighted the scarcity of suitable pet products, driving Matt to innovate and ensure that Bark offered exceptional value to dog owners.

Early Days of Barkbox: Sourcing and Subscriptions

Launching Barkbox involved meticulous sourcing of products and building a subscription model that resonated with dog owners. Matt shares anecdotes about the initial hand-crafted boxes, the feedback mechanism that ensured high customer retention, and the strategic use of prepayments to manage cash flow effectively. This customer-centric approach resulted in impressive early retention rates, laying a strong foundation for the company’s growth.

Struggles with Funding and Business Model

Navigating the funding landscape was a significant challenge for Matt and Henrik. Initially hesitant to raise venture capital, they focused on building a profitable business through subscriptions. However, as the company scaled, Matt grappled with investor expectations to diversify into more lucrative markets like dog food, leading to internal conflicts and strategic missteps. This period of financial strain underscored the complexities of sustaining rapid growth without compromising the company’s core values.

Survival Through 2018-2020

From mid-2018 through early 2020, Bark operated on a tight budget, balancing the need to maintain operations while facing dwindling cash reserves. Matt describes this era as "more stressful," dealing with board pressure and investor expectations amidst slowing user acquisition. Despite these challenges, Bark continued to innovate, launching initiatives like BarCare—an in-home veterinary service—which, although financially unsustainable, demonstrated the company’s commitment to enhancing pet care.

The Pandemic and Its Impact

The COVID-19 pandemic brought both challenges and opportunities for Bark. Initially facing uncertainty with potential cash flow issues, the surge in pet adoptions during the pandemic led to a boom in customer acquisition. Matt narrates how the unforeseen circumstances accelerated Bark’s growth, enabling the company to weather the financial storm and pivot towards new initiatives.

Stepping Down and Return to CEO

In September 2020, Matt stepped down as CEO, entrusting leadership to Manish Juneja, a former Amazon executive. This transition coincided with the tragic passing of Hugo, prompting Matt to return to the helm of Bark to preserve his legacy. Upon his return in January 2022, Matt found the company in dire financial straits, burning $194 million annually. His immediate focus was on survival—streamlining operations, optimizing supply chains, and instilling financial discipline to steer Bark towards profitability.

Current Initiatives with Barkair

Under Matt’s renewed leadership, Bark has embarked on innovative projects like Barkair, a pet airline service that offers luxury flights for dogs. Despite high ticket prices and limited flight availability, Barkair has garnered substantial interest, highlighting the demand for specialized pet services. Matt is determined to make these flights more affordable, aiming to resolve the logistical challenges associated with transporting large dogs.

Conclusion and Reflection on Luck and Timing

Reflecting on his journey, Matt attributes Bark’s success to a combination of hard work, strategic decisions, and fortunate timing. He acknowledges the role of serendipity—such as launching during a period of high pet adoption and leveraging the pandemic's unique circumstances. Matt emphasizes the importance of resilience and adaptability, highlighting how perseverance through financial hardships and market shifts ultimately led Bark to profitability.

Notable Quotes

• Matt Meeker [03:11]: “The immediate challenge is do everything possible to keep this thing alive and floating and don’t die.”

• Matt Meeker [05:58]: “It was the most eye-opening experience ever. Instantly you knew he was talking about something important and big and that the world was about to change.”

• Matt Meeker [39:52]: “We had no churn. Not one. Not one subscriber left.”

• Matt Meeker [44:12]: “I'm at the desk, necessarily 18 hours a day, but my head is in it 24 hours a day.”

• Matt Meeker [72:21]: “I definitely work hard at it and always have. But some of this, I think it goes back to when we were talking about 2018 and not raising that money…”

Key Takeaways

• Persistence Amid Challenges: Matt’s journey with Bark underscores the importance of resilience in the face of financial and operational challenges.

• Customer-Centric Approach: High customer retention rates were achieved through attentive service and responsiveness to feedback, fostering strong brand loyalty.

• Strategic Focus: Focusing on core strengths—dog products—allowed Bark to build a strong market presence without diluting its brand.

• Adaptability: Navigating through economic downturns and unexpected events like the pandemic demonstrated Bark’s ability to adapt and capitalize on emerging opportunities.

• Legacy and Passion: Personal motivations, such as Matt’s relationship with his dog Hugo, played a crucial role in driving the company’s mission and sustainability.

Conclusion

Matt Meeker’s story with Bark is a testament to the blend of strategic vision, personal passion, and adaptability required to build a successful brand in a competitive industry. From humble beginnings and early setbacks to overcoming financial hardships and embracing innovative ventures, Matt’s journey offers valuable insights into the dynamic landscape of entrepreneurship and the unwavering commitment needed to build a lasting legacy.