The Twenty Minute VC (20VC): Venture Capital | Startup Funding | The Pitch 20VC Exclusive: Fast's Domm Holland on What Really Happened at Fast? Were they really Burning $10M per Month? Where did Bolt Succeed Where Fast Did Not? What is It Really Like To Have Stripe Invest in your Company?
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Apr 13, 2022 Domm Holland, Founder and CEO of Fast, shares his journey following the company's unexpected closure. He reflects on the harsh lessons learned, highlighting the key mistakes made and contrasting Fast's challenges with Bolt's successes. Holland provides candid insights into excessive burn rates and the difficult decisions surrounding layoffs. He also discusses the unique experience of having Stripe as an investor and emphasizes the importance of perseverance and adaptability in the ever-evolving startup landscape.
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Tow's Downfall
- Domm Holland's towing company, Tow, secured a government contract but faced a payment dispute.
- The government refused to pay $17 million, leading to Tow's closure and impacting subcontractors.
Fast's Failure
- Fast's rapid burn rate, coupled with a downturn in the fundraising market, led to its shutdown.
- The company's expansion into the enterprise space didn't generate revenue quickly enough.
People Costs
- Fast's high burn rate stemmed primarily from substantial personnel costs, not excessive marketing or events.
- The company hired aggressively, especially in customer success and partnerships, outpacing its immediate needs.