Remember InVision?
The "hypergrowth" startup that recently shut down.
I was a major fan, so I had to dig in when I saw the news.
So, what went wrong?
From $2B to $30M ghost, this week I spent some time digging through employee, customer, and analyst insights to uncover five things, in my opinion, that brought InVision down:
1. Hype machine on autopilot: InVision chased growth at all costs, prioritizing vanity metrics and neglecting real customer success. Gross retention bled? Meh, NRR. Topline revenue didn't tell the whole story - customer churn grew, painting a far grimmer picture.
2. Customer success? It seemed more like customer neglect: This wasn't the CS team's fault. Leadership prioritized chasing shiny objects over building the Customer Success Flywheel: delivering what customers expect and pay for.
3. Figma's slow burn vs. InVision's feature frenzy: While Figma meticulously crafted an insanely good product, InVision choked on feature bloat. Obsessed with outperforming everyone, they bit off more than they could chew, leaving customers, EPD, and CS drowning in bugs and broken promises.
4. Marketing hype, customer reality: Expensive videos, lavish events, and a booming "brand"? Marketing can't build trust, only customers can. InVision focused on the wrong things, launching half-baked features that offered no real value. Remember: brand is what customers say about you, not what you say about yourself.
5. False precision, real frustration: InVision measured "health" with meaningless metrics like logins and Success Plans. These are vanity trophies in the CS world! Proper health is measured by gross retention. Customers weren't logging in to achieve success, they were logging in to migrate to Figma.
The TL;DR? InVision crashed because they forgot the golden rule of business: put customers at the heart of everything you do.
It's a cautionary lesson for all founders.
Don't get lost in the hype - stay laser-focused on delivering real value, building trust, and measuring what matters.