Serena & Lily: Serena Dugan and Lily Kanter. They Built a $20M Brand—Then One Investor Almost Destroyed It

In this episode of How I Built This, co-founders of the luxury home goods brand Serena and Lily, Lily Cantor and Serena Dugan, share their entrepreneurial journey beginning with the establishment of a baby boutique in Mill Valley, California. They found early success with their first baby bedding catalog, which garnered $100,000 in orders within weeks but quickly faced challenges due to a lack of inventory. As they expanded their offerings to furniture and home decor, they experienced the growing pains that necessitated multiple rounds of financing. The duo learned that securing the right investor is crucial, as not all funding is beneficial for business culture and direction.

They explain how a shift in strategy coincided with the 2008 financial crisis, compelling them to pivot towards direct-to-consumer sales and how they opened a brick-and-mortar store in the Hamptons to establish brand presence. Despite achieving significant revenue milestones, they faced internal board conflicts and pressure from investors, particularly from a private equity firm that demanded profitability over growth. Ultimately, they navigated through these tumultuous waters by restructuring and selling the company to a family office, relieving some financial strain and repositioning for future growth. The episode concludes with Cantor and Dugan reflecting on the importance of resilience and hard work in entrepreneurship, balanced with a dose of serendipity.