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Ecomom

The business, the turning points, and the decisions behind them.

Founded2009
Event year2013
FundingUS$12M

01 / WHAT IT BUILT

What the company did

Ecomom was an e-commerce company selling environmentally safe and healthy products for mothers and children. The brand was founded in 2006 by Kimberly Pinkson — combining the EcoMom Alliance non-profit education arm with an e-commerce startup co-founded by Jenny Orser and Chris de Tournay Birkhan — and was later acquired by Jody Sherman, who moved the headquarters from California to Las Vegas. It raised more than $12 million in funding and exceeded $1 million in sales by 2011.

02 / Ecomom FAILURE REASONS

Failure reasons

Ecomom's core problem was a broken unit-economics engine. According to the company's controller Philip Prentiss's post-mortem, heavy discounting — including 50% discounts on daily-deal sites like Groupon that could not be limited to one per customer — left the company with a negative 48% contribution margin: the average $60 order cost $89 to fulfill, losing $29 on every sale, so more revenue meant more losses. Management turmoil compounded the damage: after Jody Sherman acquired the company, founder Kimberly Pinkson was forced out amid disagreements, and Prentiss described Sherman as a CEO who did not understand margin. By late 2012 the company was burning through its August raise — losing $1.1 million after variable cost in five months with less than $1 million left in the bank — and shut its doors in February 2013. Sherman died by suicide shortly after the shutdown.

03 / EVENT HISTORY

Events in the structured record

  1. Company founded

    Ecomom was founded.

  2. Operations ended

    Ecomom ended operations.

04 / CONTEMPORARY REBUILD ASSESSMENT

Difficulty of rebuilding this project today

Material for this section is being gathered and checked. It will appear here once ready.

Rebuild difficultyPending assessmentNot completed
Scoring basisNot completed
ScalabilityPending assessmentNot completed
Scoring basisNot completed

Overall assessment: Not completed

05 / CAUSAL CHAIN

How the factors connect

  1. 01

    Ecomom shut its doors in February 2013 after raising more than $12 million in funding.

  2. 02

    In April 2013, GreenCupboards — a Spokane e-commerce startup that renamed itself Etailz — acquired Ecomom's assets, including its domain and customer list, for an undisclosed sum.

  3. 03

    Etailz planned to relaunch the Ecomom website later in 2013, and the site reopened in the early summer of 2013.