It Takes Two: Kim Stiefel of Repeat & Henri Pierre-Jacques of Harlem Capital
In our newest installment of “It Takes Two,” our column where we feature two stakeholders in the world of entrepreneurship, we sat down with Kim Stiefel of Repeat and Henri Pierre-Jacques of Harlem Capital. Pierre-Jacques and his team led Repeat’s $1.5 million seed round with Act One Ventures, Mucker Capital, Techstars, and a few new investors, Breaktrail Ventures, Wedbush Ventures, and Vamos Ventures.
Kim Stiefel is co-founder and CEO of Repeat, a platform that is designed to help CPG (consumer packaged goods) companies turn one-time buyers into loyal fans by providing a frictionless ordering experience for customers.
Henri Pierre-Jacques is the Managing Partner at Harlem Capital. Together with Jarrid Tingle, the Harlem Capital team is on a mission to change the face of entrepreneurship. With the goal of investing in 1,000 founders over the next 20 years, the team has invested in companies like Paladin, Blavity, and Curu.
In this interview, we discussed how these two met, learnings about the CPG industry, and the best advice that keeps them motivated as they continue to transform the worlds of venture capital and entrepreneurship.
Kicking things off, how did you two meet?
Henri Pierre-Jacques: Harlem Capital has a partnership with Techstars where we do office hours for their companies every couple of months. I met Kim during our spring office hours. At the time, she wasn’t formally fundraising and was casually putting together an insider round. After our conversation, I was really impressed by her insight and asked if she was open to raising more money from outsiders. We knew some of her existing investors already since we co-invested with one and had a mutual LP with another so it was easy to get them on board. After getting to know each other and getting a better understanding of the business, it was pretty clear that we wanted to invest.
That’s awesome to hear! Kim, would love to hear where you found the inspiration to start Repeat?
Kim Stiefel: So, first things first, Repeat enables brands that sell replenishable and consumable items (like cleaning products, lotions, toilet paper, etc.) to turn one-time buyers into repeat customers
The genesis for the company was back in 2016 when my co-founder Sarah Wissel and I launched a subscription brand of our own. We started interviewing our customers only to realize that subscription was really not the most delightful experience. Specifically, we learned that — as consumers — we subscribe to services (e.g. Spotify and Netflix) because they make our lives better but when it comes to products, subscription completely falls apart.
Sarah and I started looking for ways to achieve repeat revenue without locking our customers into a subscription model. We couldn’t find any tools that would easily allow us to do that so, naturally, we decided to build it ourselves.
I guess you could say that the predecessor of Repeat was built for our own brand and the inspiration came from that. In other words, once we realized that this was a universal problem, we decided to share our solution with the world, and Repeat was born. We essentially “lived our way to the problem” we’re now solving.
Henri: We also saw the problem that Repeat was solving in our own portfolio. One of our portfolio companies tried to go down the subscription route but realized that the subscription model wasn’t working for them. If someone unsubscribes after the fourth subscription, they are no longer going to come back as an a-la-carte customer, which cuts your LTV. We knew this was an issue that the company was trying to solve for themselves, and this was happening across the consumer product industry. It seems like no one has tapped into the subscription model for physical products in the way that Netflix and Spotify have.
Awesome to see how you were able to spin out of your original idea and create something that is transforming the CPG industry. As we’ve shifted to more online purchasing, what are some insights you’ve learned as you help customers?
Kim: I think the biggest insight we’ve learned is that when we’re in shop mode, for example when we’re buying jeans or a leather jacket, we’re on a journey. But when we’re in buy mode, like when we need to restock everyday essentials like toilet paper, we’re on a mission. In buy mode, the least amount of friction wins.
You would think that the subscription model would be great for essential items because you can set it up and forget about it. However, we’ve found that it actually creates more friction because the customer either gets too much of it or they don’t have it when we need it.
We’ve anchored a lot of our insights in the question “How do we create better and more delightful re-ordering experiences for consumers when they’re in ‘buy mode’?” The reason being, if we’re successful at doing this for the consumer, by proxy, the brand will achieve loyalty or as we refer to it: repeat.
What do you think the next three to five years will look like in regards to software that empowers consumer spending?
Kim: The world of subscription replenishment today is too rigid. So, I’m excited about the idea of dynamic, flexible subscriptions versus fixed, time-based ones. This starts with analyzing single purchase SKU data, past purchase history, and consumption data to create better, more delightful and personalized replenishment and subscription experiences. That’s the direction we’re going and I’m excited to see how others follow suit.
Henri, are there any lessons that you’ve taken specifically from Repeat that you think will help improve your investment thesis as you invest in more companies?
Henri: As we invest more in e-commerce companies, we definitely lean on our founders that are in that space for their insights. After chatting with a company that recently joined our portfolio, I immediately texted Kim to get her perspective on how this company could make waves in the space. Her answers are super helpful because she is in the trenches. She’s having conversations that are valuable for her but also give us a great insight into that particular landscape. The best investors always try to leverage their founders and get smarter about whatever they’re working on. In the world of venture, everybody needs everybody.
The best investors always try to leverage their founders and get smarter about whatever they’re working on. In the world of venture, everybody needs everybody.
Absolutely! Each stakeholder can be so valuable to each other in the founder-investor relationship. In your time working together, what are some of the best parts of your working relationship?
Kim: I constantly tell the Harlem Capital team that they are the best at what they do. It’s everything from sending notes or giving great feedback. I can text Henri at any time to ask quick questions or bounce ideas off him. He is always ready to support me. As a founder, I can also be real if I’m struggling. The Harlem team has fully embraced vulnerability and makes it easy to be radically honest because they are empathetic to my experience as a founder. Lastly, Henri and his team have been instrumental in helping us make key hires that have helped us scale our business. The list goes on and on, but each interaction with Harlem Capital is exactly what every VC should aim to be.
Henri: Right back at you! Our number one value at Harlem Capital is communication, and Kim is an exceptional communicator. She updates us at every stage, and it makes the journey more exciting when you’re closely kept in the loop about what’s going on. I also really appreciate Kim’s vulnerability as we have gotten to know each other. We’re not just investing in founders — we are investing in people. Even though at the end of the day we are in the business of making money, the relationship that we develop is critical. If we’re going to be in this relationship for 10 years, I have to get to know your full self. Kim is so great at being open that it has compelled me to open up as well. Not only do we talk about Repeat, but she will send me cute pictures of her dog or updates on her cross-country road trip to see family during the pandemic.
What are some lessons about venture and entrepreneurship that you’ve come to debunk in your experience?
Kim: Raising money is only a small piece of the pie when it comes to starting a company. Because most of the news is about fundraising and valuations, people tend to conflate fundraising as a signal for success. While it may give you the cash to hire and build something exceptional, it’s not the end all be all. It’s one facet that goes into building a world-class business.
Henri: How valuable it is to create a legacy. Jarrid and I came into venture capital with no prior experience but one thing that we noticed was that the old VC model was partner-driven. We’ve turned this idea on its head to give our founders full access to every member of our team. Our associates and interns are involved in every aspect of our investment process so that they can get exposed to that side of the business. This is one step in figuring out how we can groom them into becoming the next generation of partners and fund managers. The earlier that people can get their feet wet, the more incentivized people at the junior level will want to stay in venture long-term.
Raising money is only a small piece of the pie when it comes to starting a company.
What’s the best piece of advice that someone has given you?
Kim: The first piece of advice is: “if it feels good, don’t send it.” This advice has helped me a lot in my career, especially in terms of managing relationships. If you’re fired up about something, take the time to cool off before you send something you will regret.
The second piece of advice is to remember that “pressure is a privilege.” This quote from Billie Jean King grounds me anytime I’m overwhelmed because it reminds me of just how fortunate I am to get to build this company in the first place.
Henri: One of my favorites comes from my dad. We had just been turned down by an LP, who happened to be the wealthy father of a college friend.
I called him to talk about the call, and he responded by saying, “If people don’t think your dreams are crazy, you’re not dreaming big enough.” I think when you’re young, and you see others who have made it, it’s important to remember that the idea they once had was also considered crazy. When I’m talking to founders, I’m always gunning for those who have a great deal of conviction in their ideas even when others don’t believe them.
If people don’t think your dreams are crazy, you’re not dreaming big enough.
Ending on a fun note, what are the things that are getting you through quarantine?
Henri: Netflix for sure. It’s always on in the background while I’m getting through other tasks like working out or checking emails. One thing that has also made a difference is not taking external meetings on Fridays. I started this practice after Memorial Day. It has been a big game-changer in creating work-life balance. Spending time with family has also been super important as well. It’s been really great golfing with my grandfather on weekends and exploring new Detroit restaurants with my wife during our date nights.
Kim: Definitely music. I can’t live without it. Once I put in my AirPods, I zone out and let the music flow. I also recently finished this awesome show called “Ted Lasso,” and I’m aspiring to be the Ted Lasso of our company. Every morning, my partner and I also walk three miles down the beach. It’s a great way to start the day, clear my mind, and connect to the things that are important.
