Whoop Founder: How I Built A $3.6 BILLION Company & BEAT Apple! Will Ahmed

Oct 24, 2022
Overview

Will Ahmed, founder of Whoop, discusses building a $3.6 billion health monitoring company through counterintuitive decisions, extreme focus, and personal growth. He shares insights on managing stress, the power of meditation, optimizing sleep and recovery, and navigating intense competition.

At a Glance
17 Insights
1h 45m Duration
18 Topics
8 Concepts

Deep Dive Analysis

Will Ahmed's Early Life and Genesis of Whoop

Understanding Overtraining and Its Impact

The Entrepreneurial Journey: Confidence and Inevitability

Disassociating Personal Identity from Company Success

Coping with Stress: The Power of Transcendental Meditation

Overcoming Near-Bankruptcy and Early Business Challenges

Leadership in Crisis: Managing Stress and Controllables

Will's Daily Routine and Bio-Optimization Habits

Heart Rate Variability: A Key Indicator of Body Readiness

Optimizing Sleep: Blue Light, REM, and Slow-Wave Sleep

Balancing Training Strain with Recovery

Whoop's Culture: Data-Driven Employee Policies

Strategic Focus and Counterintuitive Product Decisions

The Subscription Model and Customer-Centric Innovation

Competing with Giants: Whoop's Unique Brand Strategy

Navigating Competition: The Amazon Challenge

Future Vision and Sustaining Entrepreneurial Drive

Advice on Balancing Gratitude and Drive

Overtraining

Overtraining is a continued state of overreaching that leads to a depressed physical and psychological state. Physiologically, the body feels run down, making normally easy activities difficult, and psychologically, it causes feelings of being lousy or sick, lasting weeks to months.

Heart Rate Variability (HRV)

HRV is the amount of time between successive beats of the heart, serving as a lens into the autonomic nervous system. Higher variability is a positive sign, indicating the body's ability to regulate itself and adapt to its environment.

Sympathetic Nervous System

This part of the autonomic nervous system is associated with activation, leading to increased heart rate, blood pressure, and respiration. It is often dominant during stress or exercise.

Parasympathetic Nervous System

This part of the autonomic nervous system is associated with rest and recovery, leading to decreased heart rate, blood pressure, and respiration. It plays a crucial role in helping the body relax and fall asleep.

REM Sleep

REM sleep is a critical stage where the mind repairs cognitively, and deep dreams occur. Research indicates that more REM sleep can soften amygdala responses, reducing fight-or-flight reactions.

Slow-Wave Sleep (Deep Sleep)

This sleep stage is when the body produces approximately 95% of its human growth hormone, which is essential for physical repair and muscle strengthening, making it vital for recovery after exercise.

Blue Light

Blue light, emitted by screens like cell phones and televisions, signals the brain to stay awake. Blocking this light, especially in the evening, can significantly improve the quality of restorative sleep stages.

Strain (Whoop Metric)

Strain on Whoop is a measure of the cardiovascular stress placed on the body, calculated by the amount of time the heart spends in an elevated rate zone. It helps individuals balance workout intensity with their body's recovery status.

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What is overtraining and how does it affect the body?

Overtraining is a prolonged state of overreaching that leads to a depressed physical and psychological state, making normal activities difficult and causing feelings of being run down, similar to being sick. It can last from weeks to months.

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How can entrepreneurs manage the stress of building a company without letting it consume their identity?

It's crucial to disassociate personal identity from the company's performance, learn stress management techniques like meditation, and focus on controlling the controllables rather than being a 'yo-yo' tied to daily company ups and downs.

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What are the benefits of meditation, especially for busy minds?

Meditation helps individuals filter thoughts, choose which thoughts to engage with, and develop a 'third person' awareness that allows them to recognize impending emotional states or actions before they occur, leading to greater self-control.

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Why is Heart Rate Variability (HRV) an important health indicator?

HRV measures the variability in time between successive heartbeats, serving as a lens into the autonomic nervous system's ability to regulate itself. High HRV indicates better regulation and restoration, while low HRV can signal dehydration, poor diet, alcohol consumption, heavy exercise, or psychological stress.

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How does blue light affect sleep and what can be done about it?

Blue light, emitted from screens, tells the brain to stay awake. Wearing blue light blocking glasses in the evening can counteract this, significantly boosting restorative REM and slow-wave sleep.

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What is the difference between REM sleep and slow-wave sleep, and why are they important?

REM sleep is vital for cognitive repair and dreaming, and higher amounts can soften amygdala responses to stress. Slow-wave sleep (deep sleep) is when the body produces most of its human growth hormone, crucial for physical recovery and muscle strengthening.

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How should one balance training intensity with recovery for optimal performance?

Instead of consistent high-intensity workouts, it's beneficial to vary strain based on the body's recovery status. On days with low recovery, opt for lighter activity or rest, and on days with high recovery, push for higher strain.

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How can companies maintain innovation and focus as they grow?

Companies can maintain innovation by having a clear perspective on what they are building and, crucially, what they are not building. This involves making counterintuitive decisions, sticking to core identity, and fostering a culture of first principles thinking rather than succumbing to 'scope creep' from success.

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What is the difference between hearing and listening when receiving feedback?

Hearing means absorbing information, even negative feedback, and sitting with it to understand different perspectives. Listening implies actively engaging with the feedback and potentially acting on it. A leader should hear all feedback, even if they don't always listen to it in terms of adopting the suggested solution.

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Why are customers better at identifying problems than providing solutions?

Customers are excellent at articulating their pain points and what's wrong with existing solutions or their current experience. However, they often suggest solutions that are conventional or hyper-focused on symptoms rather than the underlying problem, which requires deeper, first-principles thinking to solve effectively.

1. Disassociate Identity from Company

Separate your personal identity from your company’s performance to avoid emotional highs and lows. This helps maintain a steady hand through chaos and fosters healthier leadership, as tying identity too closely can lead to unhealthy stress and panic attacks.

2. Meditate to Filter Thoughts

Practice meditation, such as transcendental meditation, daily to learn how to filter thoughts and gain control over your actions and feelings. This practice helps you sense what you’re about to do or say before you do it, acting as a ‘superpower’ for self-control.

3. Balance Gratitude with Drive

Actively introduce gratitude for current achievements and progress while remaining driven towards future milestones. This approach makes the entrepreneurial journey more sustainable and prevents burnout from solely relying on a ‘dopamine engine’ for motivation.

4. Maintain Extreme Focus on Mission

Cultivate intense focus on your core mission, clearly defining what you are building and, crucially, what you are not. This discipline, even if uncomfortable, drives true innovation and competitive differentiation by preventing ‘scope creep’ and resource dilution.

5. Optimize Sleep Environment

Sleep in a cold, dark bedroom and aim for a consistent bedtime to significantly improve sleep quality. These conditions are shown to enhance restorative sleep stages like REM and slow-wave sleep, which are crucial for cognitive and physical repair.

6. Use Blue Light Blocking Glasses

Wear blue light blocking glasses in the evening, especially when using devices, as a ‘get out of jail free card’ for device use. This practice significantly boosts REM and slow-wave sleep by preventing blue light from signaling your brain to stay awake.

7. Vary Exercise Strain by Recovery

Adjust your exercise intensity (strain) based on your body’s daily recovery status. Avoid consistent high-strain workouts every day; instead, allow for recovery or lower-intensity activities when recovery is low, and push harder when your body is peaking, to prevent overtraining.

8. Control Breath, Influence Nervous System

Consciously control your breathing to influence your autonomic nervous system and heart rate variability. Inhaling is sympathetic (activation), and exhaling is parasympathetic (calming), allowing you to actively regulate your body’s state.

9. Focus on Controllables Under Stress

During highly stressful or challenging times, identify and focus solely on the things you can control. This exercise can be very calming and focusing, helping you navigate difficult situations with clarity and purpose.

10. Cultivate Commitment, Intensity, Humility

When building a founding team or hiring, prioritize individuals with commitment, intensity, and humility. Commitment ensures perseverance, intensity drives hard work, and humility fosters collaborative problem-solving for the company’s best interest.

11. Hear Feedback, Don’t Always Listen

When receiving negative feedback or disagreement, make an effort to ‘hear’ it by absorbing and sitting with it, rather than immediately ’listening’ or internalizing it. This allows for critical self-reflection and a more objective evaluation of your convictions.

12. Identify Customer Problems, Not Solutions

When engaging with customers, focus on understanding their underlying problems rather than just the solutions they propose. This approach allows for more innovative and effective product development that addresses core needs.

13. Build Authentically Loved Products

Prioritize building a truly great product that people genuinely love and derive value from, rather than relying heavily on advertising. Authentic user advocacy and word-of-mouth are more powerful in competitive markets.

14. Prioritize Morning Workouts

Schedule your workouts for the morning to ensure they get done, allowing flexibility for work demands later in the day. This strategy helps maintain consistency in exercise and prevents missed sessions due to unforeseen evening commitments.

15. Embrace Cold Exposure for Adrenaline

Incorporate cold exposure, such as ending showers with cold water, into your routine. This practice provides a jolt of adrenaline, forces proper breathing, and can lead to a feeling of happiness and invigoration.

16. Prioritize Sleep Consistency

Strive for a consistent bedtime and wake-up schedule, as routine helps your body recover faster. This consistency, beyond just total sleep duration, contributes significantly to overall sleep quality and physical restoration.

17. Use Sauna/Steam Room for Longevity

Regularly use a steam room or sauna a few days a week, as research suggests this practice can contribute to increased longevity. This provides a physiological benefit that supports overall health.

90% of life is showing up. The other 10% is what happens when you get there.

Peter Zaloum (recounted by Will Ahmed)

I think startups really only fail if the founders quit or you run out of money.

Will Ahmed

I think the busier your mind is, the more you need to meditate.

Will Ahmed

Feelings are overrated. There are things happening in your body that you can't feel.

Will Ahmed

What's different about your product is also what makes it special. And I think that true innovation often comes from a level of focus or discipline that's really uncomfortable.

Will Ahmed

I think it's important to develop a process for conviction and then to really sit with something that you're convinced about and pressure test it and bat it around and even let other people pressure test it.

Will Ahmed

You can be very appreciative of where you are today and still entirely driven to get to the next milestone in your, in your mind.

Will Ahmed

Will Ahmed's Nighttime Preparation for Optimal Sleep

Will Ahmed
  1. Pack workout clothes for the next morning.
  2. Lay out clothes to wear to work the next day.
  3. Write down 2-3 key focus items for the next day.
  4. Sleep in a really cold bedroom.
  5. Sleep in a really dark bedroom.
  6. Go to bed at a somewhat consistent time (around 11:30 PM - midnight).

Will Ahmed's Morning Routine for Productivity and Well-being

Will Ahmed
  1. Wake up around 6:30 AM.
  2. Take a quick shower.
  3. Give wife kisses before leaving (while she's sleeping).
  4. Work out for an hour with a trainer.
  5. Do a steam room session.
  6. Take a freezing cold shower (end all showers cold).
  7. Eat a breakfast mostly consisting of proteins (e.g., egg whites, avocado, bacon).

Transcendental Meditation Practice

Will Ahmed
  1. Spend about 22 minutes every morning.
  2. Focus on breathing.
  3. Repeat a mantra.
  4. When thoughts drift in, decide whether to think about the thought or return to the mantra.

Whoop's Red Recovery Policy (during COVID)

Will Ahmed
  1. If an employee has a 'red recovery' status on their Whoop, they are required to stay home.

Whoop's Employee Sleep Bonus Program

Will Ahmed
  1. Employees can opt into the sleep bonus program.
  2. If an employee achieves 85% sleep performance on average throughout the month, they receive a $100 bonus on their pay.
$3.6 billion
Whoop company valuation Mentioned at the beginning of the episode
Hundreds
Number of medical papers read by Will Ahmed During his time at Harvard, leading to the idea for Whoop
24 years old
Will Ahmed's age when he learned meditation In 2014, when Whoop had 30-40 employees
30-40 people
Whoop's team size in 2014 When Will Ahmed learned meditation
$20 million
Capital raised by Whoop by 2014 By the time Will Ahmed learned meditation
10 years
Years Will Ahmed has been building Whoop From its inception at Harvard
First 7 years
Period of difficult technology development and capital raising Before changing the business model
$400 million
Total capital raised by Whoop To date, as mentioned by Will Ahmed
18 months
Period with less than 3 months of cash runway During a challenging phase for Whoop
50-70 people
Whoop team size during cash runway challenge Operating with limited cash runway
2 days
Time from potential bankruptcy to deal signing Whoop was close to filing for bankruptcy
95%
Percentage of human growth hormone produced during slow-wave sleep Highlighting the importance of deep sleep for physical repair
0 to 21
Whoop strain scale range Used to measure cardiovascular stress
12 or 13
Typical strain for amateur exerciser Often too consistent in intensity
18-24 months ago
Timeframe for 'breath work' trend When the term became widespread
2017-2018
Year Amazon approached Whoop for investment/acquisition Leading to Amazon's later product knockoff