This founder has $236 million from investors including Jay-Z. Here’s How She’s Getting Ready for Hyper-growth

Amy Erratt, chief executive of hair-color startup Madison Reed, founded in 2014, spent the first decades of her career in finance and venture capital. Despite the reputation of those industries, it was within them that she devised her signature leadership style, which she describes as “leading with an open heart and love”.

Basically, style involves treating employees with respect, empowering their voices in decision making, and showing them as complete, transparent, themselves. He Tells Inc. What I Know Podcast That “leading by heart” is not some soulful concept. In fact, this is especially applicable when having difficult conversations.

“It’s really true and authentic, including delivering bad news,” she says. “I love you. So I’m going to tell you the whole truth, okay? I’m not going to have a conversation that isn’t straight, open, loving from the heart.”

If it sounds a bit like parenthood, it’s not far off, admits Iret. Eventually, he named the San Francisco-based company after his daughter. She certainly doesn’t see her employees as children – but as people who can benefit from a mentoring relationship. Now that the company has over 600 employees, it’s not possible to have that kind of direct relationship with all of them, but Irate’s philosophy is to “establish a company where petri dishes exist, that those ingredients can transform other people’s lives.” changes,” she says.

Madison Reed received $33 million of new venture capital in April from a slate of investors, including Jay-Z’s Marcy Ventures, bringing the company’s total funding to $236 million. The company plans to use the money to expand from 62 to more than 80 hair color bars this year, and to hire 850 more colorists. This is in addition to strengthening its direct-to-consumer hair-color subscription model.

How will Irate extend its “leading with love” philosophy to the service industry? The company says its colorists will earn three times more than traditional salons, while receiving full-time benefits and career growth opportunities.

“I really want this to be the best place for stylists to work, where they can say, ‘It changed my life. It was a career-defining moment,'” she says. “The aspirations of this company are not set only for a select few … they are set equally for each team member.”

To hear my full interview with Amy, click here Hereon the player above, or find What do I know on Apple Podcasts, Spotify, sewing machineOr anywhere you listen to podcasts.