Care.com’s Founder Shares How She Created, Scaled, and Negotiated a $500M Exit…and Why She’s at It Again 

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Full Transcript:

Note: This is an original transcript–edited for sense, length, and clarity.  If you have any questions or concerns, please email our host, Doria Lavagnino, at doria@sheventurespodcast.com.

Intro:

Doria Lavagnino: If you are one of the 35 million people who have used Care.com, you know this woman. Why? Because she founded it! What you may not know are her pivots from being raised in the Philippines with six siblings, to going to school in the U.S., to becoming a young mom while in college, to becoming an entrepreneur. She created Care.com in 2007 — growing the platform exponentially to take it public and then selling it in 2020 for $500 million. She’s not done! Her latest pivot and venture, Proof of Learn, is a Web3 education platform where students can learn how to code on the blockchain. She and her co-founders have successfully raised capital to create a gamified way to learn blockchain-coding skills in a game called Metacrafters, in the metaverse. I want to welcome Sheila Lirio Marcelo — welcome to SheVentures! 

Sheila Lirio Marcelo: Thank you, Doria. Happy to be here!

Doria: It is such an honor to have you on. You are such an accomplished woman. I wanted to start with your childhood. You were raised in a large family in the Philippines. I think most Americans don’t know much about the Philippines. Can you share an important memory or give us a feel for what your life was like there?

Sheila’s Childhood

Sheila: Sure, Doria! I was born and raised in a country in Southeast Asia. It has a tropical climate and over 7,000 islands. A lot of it’s a developing economy. There is a lot of poverty in the country. It was colonized by the United States. Over 95 percent of the population speaks English and is educated in English; we grew up with American culture. It is a culture that inspires people. 

Also, interestingly about my background: my grandparents. My grandfather fought for the Americans during WWII. My family just had that sort of sense of relationship with America.

In fifth grade, my parents decided to send us to the U.S. We were between 6 and 9 years old. Talk about a pivot! We lived in Eastern Texas for a bit, but then they sent us back to the Philippines.

I went to a local Catholic school. I learned to clean floors because we had to clean our classrooms. I learned how to use a coconut husk to shine floors. I grew up with kids from all walks of life. That was probably another pivotal moment in my life. That was such a gift my parents gave me to understand the cultural, the economic difference in how everybody grew up. 

Doria: At the time, did you feel that it was a gift?

Sheila: Oh gosh, not at all. It was absolutely the hardest years of my life. But, I’ve looked back to the fact that I’m still close to my third and fourth cousins. When I go home to the Philippines, I have a desire to always go back and visit the province with many fond memories of warmth, with my grandparents’ love, so it’s got many fun memories for me.

Doria: And it’s something that you’ve really— I think — held close to you. As I was researching you, it’s very much a part of your entrepreneurial story. I didn’t realize you had come to America earlier. I do know that you also attended a small liberal arts college in America. I guess that would have been your second transition to America or the second time, is that right?

Sheila: It was our second [time]. I went to Mount Holyoke College, an all-woman’s college. I ended up going to high school in the Philippines at Brent School Baguio.

Doria: What was that like? Was it difficult to apply to colleges and go through that process from the Philippines?

Sheila: We were fairly independent. My parents didn’t know how to guide us. I had an older sister, Suzette, who paved the way for us; she guided and taught the siblings that followed her. We all ended up going to school in the U.S. because she paved the way. She was sort of the pioneer in our family. She taught us how to apply and attend schools, and how to use the common application. Of course, I ended up going to Mount Holyoke, because that is where she went. My parents loved the idea of sending us to the same school and loved the idea of a woman’s college in the United States.

Doria: I’ve recently visited Mount Holyoke. I learned that Emily Dickinson went there. 

Sheila: Yes, she did. That’s right.

Doria: Oh, yes. It’s just such a beautiful campus. It’s unbelievable. 

You openly speak about being in college and becoming a mother [and a wife]. Because of how circumstances evolved, at some point, you were sandwiched between a young child and an older parent. How did you and your husband make Care.com work pre–Care.com?

Starting Care.com

Sheila: It was really very difficult. I remember [when] we got pregnant, again, in grad school — we were expecting our son, Adam. After grad school, I had two professors Linda Applegate and Myra Hart offer me — instead of finding a full-time job after graduating — to come to teach if I wanted to. That was helpful to give birth and have the flexibility of teaching at Harvard Business School. 

Soon after, I realized I was grading internet business plans at HBS. I didn’t know how to operate an internet company. From a career desire, I said I wanted to learn to be operational. I wanted to join a startup. 

I didn’t have the resources to care for my kids to take that [opportunity]. I had to call my parents from the Philippines [and] beg them to come to the U.S. and help care for our son, Adam. That was, also, difficult. When my husband and I started, we were juggling the hours. Then, my parents came. [One day] as my dad was walking up the stairs, caring for Adam, he fell backward and had a heart attack. That was, again, another very difficult period in my life — the scare of your potential health. He ended up passing away. Then, my mom had hypertension (high blood pressure), so it’s not like I could count on her, either. 

That’s when we went to the Yellow Pages, interestingly. We put an 8.5 by 11 ad in the local YMCA. We were struggling for care. I think that experience dawned on me. I had written a business plan. It was a marketplace to match people looking for homes. I said, “Well, instead of a marketplace for real estate, what if it was a marketplace for families finding caregivers?” It was so early on, I didn’t have operational experience. It trained me to look at the needs of a family, because it was helping families save money for college, to better understand. 

My husband and I were working together. We were supporting each other, and I was frantically trying to figure out how to frantically care for my parents. I had to beg a cousin to come help because we couldn’t even afford caregivers. It was a really difficult period. 

I started looking at daycare, so we could put our son into care. I was sort of juggling all of that. I learned to drive a stick shift car in the winter, so I could take him to daycare. There were a lot of transitions. 

Doria: And that’s the reality, I think, of so many women when they’re early on in their career — whether it’s that they are in school or they are junior in their jobs. Although, maybe it’s changing a little bit with GenZ. I don’t know, but the responsibility falls on the woman. The United States has some of the poorest paid family leave in the world.

Sheila: That’s right.

Doria: Sometimes, it becomes a question of “Well, it doesn’t make sense for me to stay home and take myself out of the job market for five years while I’m caring for my children. Do I pay for childcare?” I know for me I decided to pay for childcare. We felt it was an investment for me. It sounds like you may have had that kind of support, as well. 

Sheila: Yeah, you know, it’s always a toss-up and a challenge. I’m not one to judge how someone decides for their life or what’s fulfilling or how they want to raise their children — whether they want to be the primary caregiver or if they’re sending their child to daycare or having a nanny in their home. It’s to each her or his right on how or why they want to. 

For me, the important thing is choice. That’s what it comes down to. I was just advising one of our employees, who was promoted to the management team. She’s seeing everyone around her having kids and she’s trying to think about priorities. The other advice I give is: It’s not just the ability to have choices but that it’s going to be important. It’s that the decision that you make in the context that you have in your life right now isn’t going to be forever. It isn’t a final choice. It’s not like a false choice. It’s just the context of what you’re going through. If you’re juggling a lot of different things. If there’s change and stress, and if that’s stressing your partner and you guys are deciding one needs a little more stability, it could be the case that you become the primary breadwinner. 

[That’s] exactly what happened to us. My husband decided that he was going to work part-time so that he could care for the kids in the afternoon and also coach their little leagues and things. I think it’s important to just take stock of what’s the context in our lives and not overly judge that this decision, right now, has this heavy weight. Somehow, it’s not going to change; it’s forever going to be this way. It gives people choices because people are juggling a lot of different contexts in their lives. 

Doria: Absolutely, I so agree with that — the importance of not judging other women. We don’t walk in each other’s shoes. We don’t know what goes into the decisions people make. 

Your education is formidable. You are very modest. You have a Harvard MBA  and also a JD. What do you say if women say to you, “You seem like you’re in another league. How am I ever going to accomplish anything like what you did?”

Sheila: I, certainly, think education is valuable for helping run a company. Negotiating opens doors to raising money. One of the things I have found, however, in the years that I have been leading companies, I’ve run into exceptional leaders [that] don’t have the JD or the MBA from Harvard. What I try to remind myself is — when I run into anybody — a beginner’s mindset. What am I learning from this person? What are their experiences in life? What is it? How is it adding value to my personal growth? I think that having that sort of mindset is critical. 

Now, back to your question, I tend to focus on finding your own superpower, finding the path and purpose that is true and authentic to yourself. I believe that everybody can shine, I really believe that. Then, if we can unleash that for each and everybody, I think, there’s a potential for greatness in everybody. I do authentically believe in that. 

The companies that I build  I’m not one to judge immediately whether somebody was educated somewhere. Again, sometimes, I have found the superpower in someone could have been that they may not have even graduated high school but they have incredible people skills, leadership skills, influence, and charisma; people just want to be around them. When I find talent like that, I just want to say to them, “Oh my gosh! I [want to] bottle up that incredible energy!” I raise that to say, sometimes, the journey is finding a way to unleash that inner you. 

I co-founded a company called Landit, with Lisa Skeete Tatum. Definitely visit Landit.com and take assessments. There are coaches there. I just believe in unleashing people’s superpowers.

Sheila on Meditation

Doria: I’ve heard you talk about superpowers quite a bit. I’ve also [heard you talk] about how you meditate. You seem like a very grounded person. I wondered, when you were growing Care.com and you were taking it public, was there ever a time you felt completely overwhelmed? If so, how did you deal with it?

Sheila: Oh, many times. I’m often asked the question, “How do you grow from founder all the way to public?” Experience is very different from growth to public. 

I’ve had to challenge myself to evolve and learn different skill sets. Whenever [there’s] change or something like that happens, it’s stressful on the body. It’s stressful mentally. I do meditate, I journal, and a lot of other things, typically. I do a steam bath, and I do it in cycles for 10 minutes and then two minutes of a cold plunge; I go two minutes in the steam, back two minutes of cold plunge. I talk about it openly to people, because what it does is improves your lymphatic flow. It improves not only your immune system, but it gets your hormones fired. [It], also, settles you. It reminds you that your mind is here and talks to you in certain ways and builds in these insecurities that your body is present in the moment; nothing has changed other than these thoughts that are going through your mind. That’s the power of meditation — using that space for the voices in your head that aren’t productive and useful. You know whenever those thoughts of being overwhelmed come into mind, they’re, often, driven by insecurities of fear and guilt and whatever they may be. 

The meditation helps me to not judge those thoughts, but to figure out how to clear [them] and, instead, focus and frame around them. Focus on joy, love, gratitude, and positive thoughts that move us forward. 

Sheila on Representation in Venture Capital

Doria: You’re a woman and you are a woman of color. I am sure that you know the statistics of women of color founders, who raise 0.04 percent — less than 1 percent of venture capital. What was your experience like as a woman and as a woman of color? 

Sheila: I would say the challenges are being judged. I’ve shared stories where I’m raising money and the investor thinks I’m the analyst from the bank as opposed to the founder. There are a lot of judgments. I decided [that] back then, even though I could feel like a statistic. 

I decided [to] did this leadership program called the Aspen Institute. Something dawned on me around that journey of leadership [about] my voice.  I felt like it was already a purpose-driven life for Care.com on helping families with a product. We could build to solve problems for people. What I found is that my voice equally had the power and the platform. My voice equally had the power to advocate. 

If you do a Myers-Briggs exam, I’m between introvert and extrovert. People are always shocked by that because they think I’m so extroverted. I prefer to, actually, just stay at home with my husband. We’re empty nesters, now. We have our dog versus us being out there. 

This leadership program made me realize that my voice is fairly critical in addressing the statistical problem of representation — to share my experience and my journey. As GenZs would say, if you could see her, you could be her. That also became a driving motivation for me. 

I do think it’s important, the role that we play as leaders. Sometimes, we think that putting yourself out there means you’re patting yourself on the back. I tend to keep coming back to sharing this authentic story of the journey of being overwhelmed — like your question about being human. That this is doable for people. This is achievable

To the point of taking my voice even on the representation of the .04 percent. Also, less than 1 percent of funds go to support Asian Americans, speaking of minorities. From a philanthropic perspective, I joined the Asian American Foundation [board] to represent, especially at the height of the pandemic. 

When a former leader was claiming that the pandemic was the “China virus,” [that] created a lot of racism. [I] felt like I had to step in with a group of amazing other Asian American leaders to use our voices, to represent Asian Americans so that more help [could] break this mentality that was out there. 

I think that when we have an opportunity to use our voices, even if we’re a statistic. I think [it] has been a very fulfilling part of my life, beyond a purpose-driven founder-led life. It just speaks to me. I encourage many women to speak up and use their voices and not be afraid to represent. 

Sheila’s Advice

Doria: I love that and that segues into what I was going to ask you next! I guess one answer would be to use your voice if you’re in a leadership position. Are there other tips that you have for women who aspire to be in leadership positions or who need to help others?

Sheila: I’d say my first advice is a real investment and self-awareness about what’s important to you. Your values are your triggers. There are a lot of reasons self-awareness is so critical. Jumping into an entrepreneurship journey toward leadership means giving [a piece] of yourself and serving others. If you haven’t filled your well, try and figure [it] out. It’s hard [to] harness that energy to give and balance that with your own needs.

I often say to people, “It’s not selfish to go on the journey of self-awareness, because you find your inner power of love. If you can conquer your own insecurities,  it allows you to open your heart and your mind to serve more people.” It’s a weird way to say that, but it’s an investment I try to invest in. I’m not always consistent — an hour to two hours a day [works] for me, my body, my mind, my meditation. People are like, “that’s a lot of time.” I’m in my mind thinking, “Well, there are 24 hours.” Now, of course, there’s sleep. It allows me to free up the rest of my day and availability to serve others and find that inner energy to do that — even physical energy. I think that self-awareness would be my first [advice].

I think self-awareness answers two questions that I think many women run into [in] their careers. [It’s] the [overall] question of “What’s my purpose in life? Why am I doing what I’m doing? Why do I invest in this?” It’s the same. After selling Care.com, why did I decide to found another company?  I’ve answered the question, that this fulfills me. For the close friends that I have, even venture capitalists, who know me well, they’re like, “Oh my god, you’re doing what?” They know me well and I’m being true to myself, even though it may be hard. It may be challenging, [but this is] my passion. 

Proof of Learn

Doria: Let’s turn to Proof of Learn, which I thought was fascinating.  Tell our audience about your newest venture — who it’s for and how it works.

Sheila: Yes, I’m in the blockchain space. The reason we called it Proof of Learn is like proof of work or proof of stake, in terms of proving a certain skillset, but it’s always on a blockchain, so over-transparent people could see it. 

It dawned on me that in education, one of the things we could do is basically disrupt education, instead of a four-year diploma. Nowadays, employers want to hire people with certain skill sets. It’s an amalgamation of different skill sets; it’s not just one major thing [they] love about liberal arts. [It’s] a blend of different things. It’s “how do you show proof of skill?” specifically. You go online and learn it in a fun environment. It feels like you’re playing a game. You build [the skill]. It’s super modern. We’re addressing where the next generation is going, especially post-pandemic. Then, you take an assessment and show your proof of skill recorded on the blockchain. Employers can easily find this talent. That’s sort of the broad-brush vision. 

We just tackled Web3, that’s educating developers on a blockchain. That’s where new internet technology is going. I’ve entered a space where I did Web1. I did Web2, which is Care.com. Now, I’m doing Web3 in Proof of Learn. I like being at the forefront of innovation — challenging things. 

It makes me want to go have a drink at the beach, instead of founding a company and building it again. It’s solving a problem, which is ensuring that education is accessible across the globe. It doesn’t matter where you live, or where you’re from, if you can show proof of a skill that you’ve learned, that’s important. To an employer [that shows that], you can be employed. That I’m super excited about. 

Doria: Oh, definitely! I think that is exciting! At the same time, when I think of blockchain, I know that people automatically — right or wrong — associate it with cryptocurrency, which has not had the best run. Has that had any effect, at all, on Proof of Learn?

Sheila: It hasn’t. We always knew we would build for the long term after Care.com. At the height of the pandemic, my husband and I started investing — not so much into cryptocurrency, though. What allowed us to better understand [was to] get to know the founders of different blockchains and peel the onion on the technology and the power [it had]. [That] was what I was focused on. How do we build on this technology to create proper incentives and economics? Also, credentials. Now, that can scale across the globe. The technology has incredible applicability. I think blockchain, exactly [to] what you’re saying, is a bear market. 

Lots of things have been happening in the press around trust, but it’s not just focused on cryptocurrency. To your point, it’s how you use the power. I remember with the Internet in the 90s, everyone [was] like, “We’ll never put our information online. We’ll never hire people online. We’ll never find love online, never find care online.” 

Doria: I remember.

Sheila: I think we doubted a lot of these things. Now, it’s omnipresent in our lives. The mobile phone has everything. You forget your wallet at home and it doesn’t matter, as long as you have your phone. It’s just changed [everything] for us and the expectations around them. I think it’s opening [minds] and [helping to] better understand the power and applicability of this.… It’s about different companies [and] how they’re using the technology for good. That’s what I’m focused on. 

Doria: I noticed that on the site, some classes are for people that don’t have any technical background, so they can get a feel for whether this is something they want to pursue. 

Sheila: That’s right, our first project is Metacrafters.iou. On Proof of Learn, we provide access on the basics of blockchain and a better understanding of the space. Our first project is really focused on Web2 developers and credentialing them into Web3. We will be launching other products soon for other professions, but we’re starting with the developer community. There’s such a need right now to help build blockchain and the metaverse, that we’re really focused on that talent, right now. 

Doria: In listening to [one of] your presentations, 1 percent of people that code know how to code blockchain. Why is that, do you think?

Sheila: I think there’s still [a lot to] unpack whenever there’s a new technology. I think people are fearful of it [and] doubt it. There’s a lot of hype and negativity around the press. Then, the second thing is “Does this lead to employability?” If you invest the time to go learn something, well [you] get a job. [It’s that] versus there’s an immediacy right now of Web2, that’s in the domain. I think it’s just taking [the] time, but that’s part of the reason we’re in there. 

We’re excited. We launched in the Philippines. We’re launching in India soon. We launched in the Middle East. We launch all over the world to provide access [to] pretty much anyone, as long as you’ve got an Internet connection. You take an assessment, then you can learn. We also help you find jobs.

Doria: I love that. Also, to your point, we are in a society now where a lot of people even question going to college.  They may not be able to have it, quite honestly,  or afford it. Organizations such as yours allow them to elevate their learning, and their knowledge, and become employable. 

Sheila: Exactly,  and the concept [of] vocational training online — it’s been around. [The] big difference is, now, we’ve got this [to] learn and earn. You can come to school and we’ll pay you. We’re able to do that because it’s an employer-driven revenue model. There’s a sense of belonging in a sort of experience,  a sense of belonging in the virtual world. Then, soon, ownership. That’s really what differentiates us in what we’re building. It’s a modern academy in the virtual world.

Care.com Influencing Proof of Learn

Doria: What lessons from Care.com influenced this new venture?

Sheila: Oh, there’s a lot of influence from Care. I always discussed like, “How do we have caregivers have access and ownership?” We scaled the economy. I always just like to say, “Care is the work that makes all possible.” 

That’s similar to developers, designers, and entrepreneurs that build things. “How do we make sure that there’s a sense of shared ownership all the way around?” That opened my eyes to marketplaces. Care.com was a marketplace business. Purpose-driven businesses like Care [meant] building companies a little bit differently. One of the things I brought with Care was not only the principles and process but the values of building a company that’s family oriented; that’s close, that’s transparent, and open.

Sheila’s Advice

Doria: We’re getting close to wrapping up, but I wanted to ask you, as an entrepreneur, you mentioned that you’re community-minded. [It] really shows in everything that you do. You believe in paying it forward. What can other women leaders do to help other women? What would that one thing be?

Sheila: Before I answer that question, I also have a podcast called W3B’D. If you want to learn more about blockchains, certainly go there. I’m going to start a new series of interviewing mentors and mentees. That’s the reason I thought about the podcast. 

The one thing that you can do to help other women, — it’s going to be strange: find true self-love. Love yourself and you will mirror loving other people. All women so [need to] invest in [their] true self.

Doria: It sounds simple, but it’s actually incredibly complicated. 

Sheila: It’s very complicated. I think that the more that you believe and love yourself, weirdly, the more that you have the capacity to love others.

Doria: This is going to be kind of a funny question, [but] if someone were to make a movie about you, what do you [think] the title of it would [be]? Who would play you? Would you like to play yourself?

Sheila: Oh my gosh, I have no idea. I haven’t even given that any thought! [However], I’m supporting a movie about one of the first Asian American Olympic gold medalists, who happens to be Filipino. I’d rather be behind the scenes, supporting stories. I haven’t given any thought to [a movie about me]. [I’ll] probably be dead by the time that something like that gets created.

Doria: Let me ask you, then, if there is one woman leader that has inspired you?  Not a leader, necessarily, [but] one woman who has inspired you in your life. Who would that be and why?

Sheila: There’s an incredible woman in my life. Her name is Maria Barnato. She raised her kids; she’s married to one of the most prominent Asian American Filipino Americans.  Maria [has] this incredible strength in their lives — in not only [raising] their kids. Maria and her husband — came to see me several months [ago, before] my husband and I took the company public.  They spent three dinners in a row guiding us [through] what was important for the family. [It] still get[s me] emotional thinking about it, the power that I saw in that couple, in partnership and supporting each other through the journeys in life. [It] was something that I wanted to emulate [in] my husband and me. I wanted to emulate the strength that she had, the wisdom that she had. She’s one that is still in my life. I kind of call them my professional parents; they are very much near and dear. The reason I wanted to highlight her is her leadership shines in the ways that she has led her family, in her life. I don’t think that leadership [has to] always be in the corporate environment, in creation and entrepreneurship. [It] was in her own family and raising her family, supporting her husband. The strength that they had was pretty powerful.

Doria: Can you tell listeners  where they can find all the different things [about you?] We know Care.com, you mentioned in your podcast…

Sheila: They definitely can visit me on LinkedIn, Facebook, and Instagram. Then, my podcast, which I’m super excited about. We’ve only done, I think, six episodes; it’s been from crypto-curious to crypto-confident. Often, people call me a connector, so I’m excited to kind of highlight that in our lives, as human beings — that we are webbed. Doria, thank you for having me. 

Doria: Oh, absolutely. I want to thank you for your authenticity, your support of women, and your soft-spoken-ness — how you change the way that people perceive leadership can look. Thank you.

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