'Girlboss' Sophia Amoruso says she was too quick to fire people at Nasty Gal. She shared what she learned from the startup's epic rise and fall.
Original story by: Business Insider
Last updated: Oct 22, 2025
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- Context: Sophia Amoruso, founder of Nasty Gal, shared lessons learned from her company's rise and fall on a podcast. She highlighted the dangers of chasing high valuations fueled by venture capital and offered advice to aspiring entrepreneurs.
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- Detailed Summary:
- Amoruso's Nasty Gal grew from a small online vintage clothing store to a significant fast-fashion retailer valued at $350 million before filing for bankruptcy and being acquired.
- She cautioned against the pressure of investor-driven valuation races, suggesting that focusing on surviving and extending operational runway is more beneficial than solely chasing inflated valuations.
- Amoruso advised most founders against seeking venture capital, emphasizing that digital tools now make it easier to start businesses with less external funding.
- She suggested being open to acquisition offers, noting that opportunities may not always repeat and that not every successful business needs to reach a billion-dollar valuation.
- Drawing from her experience of firing employees prematurely, Amoruso stressed the importance of coaching and giving people chances, referencing a past lawsuit involving allegations of sex discrimination and wrongful termination.
- Amoruso also recommended that aspiring entrepreneurs gain work experience before launching their own companies to develop essential skills and empathy for employees.
- She underscored the value of establishing clear processes early in a company's lifecycle to facilitate scalability.
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