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Quibi : Startup With A Billion Dollar Launch To Shutting Down All In Six Months

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Quibi : Startup With A Billion Dollar Launch To Shutting Down All In Six Months


While we see many startups doing exciting things, one should not forget the world of entrepreneurship is riddled with more failures than successes.  Hundreds of startups go bust without even making a mark every month while some go on to make a mark and go into oblivion once the consumer no longer needs their business model or products.  However, Quibi, short for quick bites, definitely takes the cake for going big with a billion dollar launch and shutting down, all of which took place in a span of six months.  So how did a billion dollar startup founded by some big names and partners with some of the biggest names in the world end up going bust?  Read ahead to find out the interesting story of Quibi.

Beginnings:

Quibi was founded by Dreamworks Animation co founder Jeffery Katzenberg and former Hewlett Packard Chief Executive Officer Meg Whitman, both of whom have deep roots in the technology and Hollywood industries as well as having a wealth of experience running billion dollar corporations.  Quibi was launched on April 6th 2020, as a content provider which is delivered in ten minute episodes called Quick Bites on mobile phones.  Quibi’s target group was mainly a younger demographic.  It is important to remember the fact that the founders decided to launch Quibi in the midst of the COVID-19 pandemic and when the American public were locked in their homes.  The founders did not anticipate this act of god to severely derail their entire plans.

Problems:

While the founders decided to go ahead with Quibi, one of the major problems was the content could only be streamed on mobile devices as the resolution was curated for a mobile viewing experience.  The subscribers began complaining about not  being able to watch the content on the big screen in their homes.  It also launched without simple, easy ways to share or meme its shows on social media thereby decreasing the chances of talk being spread by word of mouth.  Quibi had a subscription model which began after a 90 day free trial and it cost  $4.99 a month with ads and $7.99 a month without ads.  The number of subscribers for Quibi did not go according to plan as the numbers fell way below their forecasting and also due to the presence of streaming giants like Netflix, Amazon Prime Video, Disney Plus and HBO Max.  Since the pandemic had already begun to cripple employment, subscribers were forced to choose wisely on where to spend their money.  There is also YouTube which is free and also has free ‘quick bite’ content meant Quibi’s chances of succeeding were becoming slim.

Jeffery Katzenberg initially hoped Quibi would be immune to the pandemic’s effect as people would want to consume more content.  However, he later went on to blame the COVID-19 pandemic for everything which went wrong with Quibi.  In an open letter both Whitman and Katzenberg wrote “Quibi is not succeeding.  Likely for one of two reasons: because the idea itself wasn’t strong enough to justify a standalone streaming service or because of our timing.  Unfortunately, we will never know but we suspect it’s been a combination of the two (sic.)”

Since the launch of Quibi, the application quickly fell out of the top 50 most downloaded apps within the first week.  

Star Studded Signings

Quibi has recruited a who’s who of stars to work on its programming, including Chrissy Teigen, Lebron James, Dwayne Johnson, Reese Witherspoon, Chance the Rapper, Kevin Hart, Jennifer Lopez, Idris Elba, Zac Efron, Tina Fey, Liam Hemsworth, Joe Jonas and Sophie Turner.  Some of the biggest names in Hollywood were roped in to make the series and they include Steven Spielberg, Guillermo del Toro, Antoine Fuqua, Catherine Hardwicke and Ridley Scott.

ALSO READ: Most Followed Influencer Accounts On Instagram

Shutdown:

Both Katzenberg and Whitman raised $1.75 billion to tackle the growing digital video market with Quibi.  However, due to the mounting pile of problems and the lack of diversity in viewing choices forced Quibi into shutting down and began the process of selling assets.  Quibi, which employed 265 people, plans to use its remaining cash of about $350 million to pay back investors.  On October 21, 2020, just six months after Quibi’s launch, The Wall Street Journal reported that the streaming service was shutting down.  This news was confirmed by the Quibi founders Jeffery Katezenberg and Meg Whitman.

The story of Quibi tells us that no one is immune in the cutthroat world of startups and entrepreneurship.  While Quibi set out to take on the content streaming giants, it probably fell to its own Hubris by asking consumers to subscribe for unknown new content over already established content giants like Netfllix, Disney Plus and Amazon Prime Video.  

 

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Top Five Free Communication Tools For Startups

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Top Five Free Communication Tools For Startups, Startup Stories, Communication Tools,Best Communication Tools 2021, Best Communication Tools for Business, Best Team Communication Tools, Real Time Communication Tool, Communication Tools for Workplace, business communication tools, latest communication tools

In one of our previous articles published recently, we broached the importance of communications both internal and external, for startups.  Good communication needs to be nurtured and can become a powerful tool.  While communication can be done across various mediums like social media, e-mails, blog posts, newsletters, press releases and advertisements there are certain tools which a majority of startups prefer to use.  This is because, some of these tools offer a lot of features, a good user interface and experience combined with value for money.

We have explored and compiled a list of top five free communication tools which will be useful for startups.  Some of these tools are easily recognisable as we use them to some degree or the other in our day to day lives.

1) Slack

Slack is a communications platform designed specifically for businesses.  Slack is a simple interface which comes in the form of chat rooms.  Each of these rooms are organised by topics and can be private or public.  Slack also offers private messaging and is a good bet for startups which are just scaling up as they offer a free plan as well.  The free plan however allows only the 10,000 most recent messages to be viewed and searched.

2) Trello

Trello is another communications tool which is highly preferred because it has a Kanban style approach towards communication.  Kanban is a lean method to manage and improve work by balancing demands with available capacity, and by improving the handling of bottlenecks.  A Kanban Board is used to implement Kanban management.  Users can create task boards which have columns including task statuses such as ‘To Do,’ ‘In Progress,’ ‘Done.’  For startups Trello offers a free fourteen day trial which includes unlimited boards, automation and strong privacy.

3) Microsoft Teams

This communications tool is an offering from Microsoft and offers workspace chat and video conferencing, file storage, and application integration.  Users can chat in groups or privately and even send files across the platform.  It also includes video and voice calling over the internet.  For the free version, Microsoft Teams offers users to host unlimited rooms for 60 minutes and hosting upto hundred participants.  Moreover, users get ten gigabytes of free cloud storage and unlimited chat options.

ALSO READ: Importance Of Communications For A Startup

4) Zoom

Zoom, a video conferencing tool which shot into the limelight in 2020, in the middle of the COVID-19 pandemic.  This tool allowed businesses to move their work online and ensured workflow was not disturbed.  Zoom stepped up to the challenge effortlessly taking on all the bandwidth and usage it is currently experiencing.  Zoom has also removed time limits for the conference calls and made the entire suite free of cost for schools and businesses in the affected regions across the globe, thereby further increasing its popularity.  The free trial allows users to host rooms with upto 100 participants and unlimited one on one meetings, as well as group minute meetings for upto 40 minutes.

5) Skype

Skype is another offering from Microsoft and is one of the oldest known online communications platforms.  It supports text, audio, and video chat and integrates with Microsoft Office components like powerpoint.  Skype is a free to use communications platform and can be used across a variety of platforms like mobile phones, tablets, laptops and desktop computers.

This concludes the list of top five free communications platforms available in the market for startups and medium sized businesses.  Let us know if you are already using any of these or plan on using them in the future in the comments below.

 

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Importance Of Communications For A Startup

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Importance Of Communications For A Startup,Startup Stories,Why is communication critical for a startup?,Reasons Why Business Communication is Critical to Your Company's Success,Effective Communication in a Startup: A Doorway to Business Success,Why Communication Determines Startup Success,The Importance Of Communication In Business: How To Improve it,Importance of Communication in Business,The Importance of Communication in Business,How important is communication for startups?,Importance of Good Communication in Business,The Importance of Communication in Business,The Importance of Business Communication in your Organization

A startup usually prioritises its focus on the front end functions like marketing and sales, as well as the backend functions like finances and product development.  While there is no denying these functions are very critical for the success of a startup, there is one more important aspect to it which often tends to be neglected because it may not seem important.  Communications and information management is an often overlooked function a lot of companies ignore.  The fallout from ignoring the criticality of good communication does not immediately make itself known but rather keeps on piling up until the problem becomes too big to ignore.  

During the initial or idea stages of a startup when there are only a few members on the team, communication might not be a problem because all of the team would be together for most of the time.  However, as the idea develops into a product and the startup begins rapid scaling up, the need for hiring more hands arises.  This is when communication becomes a priority.

Communication for startups includes both internal and external.  Good communication needs to be nurtured and can become a powerful tool.  Some easy but highly effective ways to improve communication, both internal and external, are discussed as we progress through the article.

Internal communication:

Internal communication is a powerful tool for enabling better decision making and for increasing business productivity.  Open, clear, crisp communication from the top management level to all branches of the organization will serve to bring everyone together on to a common goal.  This will also further keep executives informed, engaged and make them feel valued thereby leading to more productivity.  Regular team meetings will ensure each team member is on the same page and will also boost employee morale.  Google Hangouts, Slack, Microsoft Teams and Trello are some of the tools which can be used for internal communications.

Some of the ways to drive a healthy internal communication within startups are

  1. Promoting openness, honesty and transparency.
  2. Candid one on one sessions with leaders.
  3. Valuing every opinion.
  4. Sharing challenges, suggestions, progress and expectations.
  5. Welcoming team feedback.
  6. Create an environment of creative expression and non judgemental spaces.

ALSO READ: The Importance Of A Communications Manager

External Communication

External communication also plays an important role in the growth of a startup.  While internal communication is used to keep the teams on the same page, external communication plays a huge role in the brand awareness and value.  External communications play an important role and a startup cannot ignore how it is perceived by job seekers, financial institutions and the public.  Therefore a startup needs to put out its ideas, culture, vision and products in the purview of the public and this can be done through blogs, social media, newsletters, press briefings, advertisements and emails.  A startup needs to realise the importance of managing external communications and the power of releasing information at the right time.  

Some of the ways to drive a healthy external communication and which often tend to be overlooked are given below.

  1. Leverage the correct medium for communication.  For example social media for branding, ads for lead generation, landing pages for call to action.
  2. Create a unique tonality suitable for the brand image of your startup.
  3. Ensure to stay in touch with your external public through all contextual means like emails, newsletters, publications and so on.
  4. Create high-quality content like opinion pieces, sales materials, research reports, annual reports, whitepapers, buyer’s guides, and product datasheets.
  5. Incase of any issues with the product on the technical side or manufacturing defects, startups need to immediately issue advisories.  Good communication is also essential for firefighting and damage control

Startups should keep in mind that internal and external communications are mostly about being spontaneous, relevance and honesty.  A healthy communication goes a long way to improve employee performance, team productivity, positive mindset, and above all business revenue.

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What Are Series A, B And C Fundings?

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What Are Series A, B And C Fundings?,Startup Stories,explored seed funding,Initial Public Offering,funding,startup,Series A funding,Series B funding,Series C funding

Startups usually go through a tumultuous series of journeys during their lifecycle.  As a startup is continuing to grow, the need for funds becomes more and more important.  Funding offers startups the necessary influx of money at various stages to focus on different aspects like product building, scaling up, expansion, innovation, research and development.  While only a handful of startups usually make it big without the need of much funding, the rest of the other startups  engage in multiple efforts to raise enough capital through rounds of external funding.

In the previous article, we have explored seed funding and the various sources of seed funding.  Once a startup completes a seed funding round, the next following rounds are called as series funding and are classified into Series A, B and C respectively.

These Series fundings usually have a timeline and Series A is the first of the three rounds of funding.  Many startups often spend years in search of a Series A funding while some other startups easily get their foot in the door.  The Series fundings are a stepping stone for a startup to eventually become a Unicorn or for filing for an Initial Public Offering (IPO.)

As is the case with seed funding, the Series A,B and C rounds of funding also see investors putting their money into a startup in exchange for equity.  The success of a startup directly correlates to the amount of returns an investor gains.

Before any round of funding, a startup needs to be valued and a valuation is done based on multiple factors like management, track record, market size, risk and liabilities.  Let us have a look at what Series A,B and C funding means below.

Series A funding

Once a startup gains a proven customer base and consistent revenue figure, the startup may opt for a Series A round of funding.  This funding can be used by a startup in question to improve their customer base as well as taking opportunities to scale their product across different markets. A startup also usually prepares a long term business plan after receiving a Series A funding.  Series A fundings range between $ 2 million and $ 15 million.  Investors are not looking for a great idea but rather a plan to take the great idea and make it into a money making business.  

Series B funding

Series B funding rounds are all about startups expanding and taking their business to the next level.  Investors help startups get there by expanding market reach. Companies that have gone through seed and Series A funding rounds have already developed substantial user bases and have proven to investors that they are prepared for success on a larger scale.  Series B fundings are usually used to scale a startup to meet the increasing demand levels.  Series B fundings range between $ 30 million and $ 60 million with the average funding at $ 33 million.

ALSO READ: 8 Best Free CRM Solutions For Startups

Series C funding

By the time startups arrive at Series C round of funding, they are usually quite successful.  The idea behind the Series C round of funding is for startups to raise capital to develop new products and expand into newer markets or probably even acquire other businesses.  Normally investors expect a 200% return on their investment during the Series C round of funding.  Companies vying for a Series C funding are usually looking to go for an IPO or to expand on a global scale.  Startups are usually valued at around $ 118 million when applying for a Series C funding.  

This concludes the list of Series funding.  Series fundings are an important milestone in any startup’s roadmap to success and this article hopes to break down the Series funds into simple terms.   

 

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