⌨️ Typeform’s Success Story Turns Sour

ISSUE #080

☕ Hey! Sippers,

If you’ve ever organized an office pizza party, collected customer feedback, or sprinted through a product launch, chances are you’ve come across Typeform. This Barcelona-based company has become a household name, with Apple, Airbnb, Nike, and Uber among its prestigious clients.

Its user-friendly design is the epitome of millennial consumer tech, complete with rounded buttons, sans-serif fonts, and soothing beiges. But here’s the kicker: this European success story might need help with the pitfalls of American-style company building, something its early team desperately wanted to avoid. 😱

SIP WORTHY

Typeform’s Success Story Turns Sour 😟

⬇️ Market Share Drops, Revenue Stagnates

New data seen by Sifted reveals a troubling trend for Typeform. As a wave of cheaper copycats floods the market, the company’s market share has plummeted. Not only that, but its revenue growth has hit a plateau. To make matters worse, Typeform failed to meet its ambitious target of 45% annual revenue growth, resulting in a 25% staff reduction in December. Yikes! 😬

💔 Loss of Faith in Leadership

But wait, there’s more! Ten former employees spilled the beans to Sifted, painting a picture of high employee turnover and a loss of trust in leadership since the company’s Series B funding round in 2017. A new CEO, frequent changes in senior leadership, and a shift toward a Silicon Valley-esque “hustle” mentality have taken a toll on the once-thriving company. It seems Typeform has lost its way. 😢

🚂 The Early Typeform ‘Gravy Train’

Typeform was founded in 2012 by web designers David Okuniev and Robert Muñoz, who stumbled upon the idea while helping a toilet company (yes, you read that right). It quickly gained traction and secured a $15m Series A in 2015, followed by a $35m Series B in 2017. By then, it had a team of 160 employees. “It felt like striking gold with a few bits of luck,” says Jerry, a former senior employee. The product’s viral growth propelled it forward, and with a perfect blend of US-style growth and the Mediterranean work-life balance, the company was a dream come true. 😍

🔍 Index Ventures Pulls the Strings

However, cracks started to show when the founders took a step back. In 2018, Joaquim “Kim” Lecha, an experienced finance and software professional, was appointed CEO. Rumor has it that Index Ventures partner Neil Rimer, an early backer, had a tight grip on the company’s operations and played a role in Lecha’s appointment. Leaked audio from a company meeting reveals the founders acknowledging issues raised by staff and admitting a lack of direction. It’s clear that Index Ventures wields significant control, but the specifics remain a mystery. 🕵️‍♂️

💼 Overhauls in Senior Leadership

With a new CEO at the helm, Typeform experienced a wave of changes in senior leadership. The company hired several executives from the US, bringing a more “American” vibe to the previously Spanish company. The founders excitedly introduced new leaders during an all-hands meeting but failed to address the abrupt departure of the former CTO. Discontent brewed among the staff, leading to high turnover rates. It seemed like the revolving door of leadership never stopped spinning. 🎢

⚙️ Building Hustle Culture Six former employees claim that Typeform’s once-thriving company culture suffered from a poorly executed attempt to embrace a Silicon Valley style “.

“hustle” culture. According to insiders, the new leadership team introduced aggressive growth targets, longer working hours, and a focus on rapid scaling. Employees were expected to work late nights and weekends, sacrificing work-life balance in the process. This shift in culture clashed with the company’s initial vision of a more balanced and humane work environment.

Some employees reported feeling burned out and disillusioned with the new direction. They expressed concerns that the emphasis on growth overshadowed the importance of employee well-being and happiness. Additionally, the increased workload and pressure led to a decline in the quality of work and strained relationships within the team.

🔁 Shaky Ground: Layoffs and Market Challenges

Typeform’s struggles became more evident when it failed to achieve its aggressive revenue growth targets. As a result, the company had to resort to layoffs in December, laying off 25% of its workforce. The downsizing further eroded employee morale and trust in leadership. It also raised questions about Typeform’s ability to compete in an increasingly crowded market.

The rise of cheaper alternatives and copycat platforms has eaten into Typeform’s market share, putting further pressure on the company. While Typeform was once known for its innovative and user-friendly design, competitors have caught up and offered similar features at a lower price point. This has led to a decline in Typeform’s market position and revenue growth.

🔮 The Future of Typeform

With the challenges it currently faces, Typeform’s future remains uncertain. The company will need to reassess its strategy and find ways to differentiate itself from competitors. This may involve refining its product offerings, reevaluating pricing strategies, and re-establishing a healthy work culture that values growth and employee well-being.

Typeform still has a strong foundation and a recognizable brand, which could provide a platform for recovery. However, it will require careful navigation and a renewed focus on its core values to regain its position as a leader in the industry.

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