This weekend, I watched "MoviePass, MovieCrash," a documentary that chronicles the rise and dramatic fall of MoviePass. The show delves into the company's origin, spearheaded by visionary Black co-founders Stacy Spikes and Hamet Watt, and explores how their innovative idea rapidly gained traction, making MoviePass the fastest-growing subscription service since Spotify. However, the narrative takes a nasty turn when new investors took control, firing Stacy and Hamet from the board. Soon after Stacy Spikes was fired by the new CEO Mitchell Lowe. Under the new management of Mitchell Lowe, Ted Farnsworth, Khalid Itum, and Helios and Matheson Analytics, MoviePass burned through an estimated $250 million. The documentary offers a fascinating, yet heartbreaking look at how Black-owned startups typically receive less than 1% of venture capital funding annually. The perils of underrepresented startups, their struggles with funding, and the challenges of sustaining a revolutionary business model while keeping control of their company. Footnote: In 2023, Black-founded startups secured only $705 million out of the $140.4 billion in venture capital funding distributed to U.S.-based startups. This represents about 0.5% of the total venture capital funding, and highlights ongoing disparities and systemic barriers in the venture capital landscape.
Matthew Mills
1mo
Yes, watched it last weekend and I was not aware of these two guys creating an innovative idea and company. I am hoping he becomes the next Steve Jobs in returning to a company and make it great again. Good luck!
Relationship Builder | Growth Marketer
1moSuch a shame. I'm eager to see the outcome of the trial for Mitch and Ted, not that it'll change anything or give Stacy and Hamet back what they're owed.