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The Sill expands from houseplants to outdoor gardening

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– Growth trajectory. Many of the direct-to-consumer brands of the 2010s succeeded by targeting millennial customers who had a lot in common with those companies’ founders—they were young and living in major cities, with the problems and needs that come with that lifestyle.

The Sill was one of those companies. Founded in 2012 by Eliza Blank, it sold houseplants online and out of small retail stores, contributing to millennials’ houseplant obsession. Its plants came in recognizable, chic pots, a marker of style and taste.

But during the pandemic, millennials’ entry into a new phase of life accelerated. Like many of her peers, Blank left a major city (in her case, it was from New York to the Catskills). With those moves came a big opportunity for the Sill: houses with yards. About a year ago, the eight-figures-in-revenue brand started the transition to become an outdoors and gardening business, going from a billion-dollar houseplant market (rounded up, as Blank recalls telling investors) to an $11 billion consumer outdoors market. The brand closed its 12 retail stores and is focusing exclusively on ecommerce, where only 10% of sales in the category happen today.

“I was 26 when I founded the company, and I’m not 26 anymore,” Blank says. “It’s a direct reflection of how I’ve grown up.” To make the transition, Blank is stepping down as CEO and bringing on a new chief executive: Adam Smith, the former CEO of the ecommerce plants business Fast Growing Trees.

The pivot takes Blank back to her original vision for the Sill—but now her customers are ready for it. Half of the brand’s customers are between 25 and 44, and 58% live in a house. “My ambition for this business was always to be a full solution, and then I got caught up in the houseplant because it became this millennial obsession,” Blank says. She explains what attracted so many millennials to houseplants: “You could be into self-care. You could be into health and wellness. You could be into home decor. Or you could be a purist—you could actually just be into plants.”

Some of those same benefits are driving millennials’ interest in gardening. “You can’t be holding your iPhone while you’re watering plants,” Blank says. But even more than with indoor plants, millennials need guidance. Gardening is the most popular hobby in the U.S., Smith says—but older generations’ knowledge hasn’t been passed down to millennials, the oldest of whom are now 44.

Compared to traditional garden centers and giants like Home Depot, the Sill is positioning itself as a place new gardeners can buy plants, but also learn what to do with them. “We have this group of people who are coming into the core gardening time of their lives, and they don’t know what to do,” Smith says. “So we are starting from the very basics of: How do you dig a hole?”

Besides education on its website and on social media, that also includes merchandising the massive assortment of plants available for purchase. For older customers, their top purchases are usually privacy trees. Sill customers are typically in smaller first homes, buying plants for patios. Its top sellers are olive trees—a popular gift—and a Meyer lemon tree, which customers will buy for fun even in colder climates, where it may only produce five lemons a year.

Eliza Blank founded the houseplant brand the Sill in 2012.

Courtesy of The Sill

Houseplants still make up most of the Sill’s business, but Smith expects the breakdown between indoor and outdoor to reach 50/50 by next year. Its pivot addresses some core challenges with the live plants industry—namely, that shipping costs are so high no matter the value of a customer’s order. Adding bigger-ticket outdoor items ups the average order value, defraying some of those costs. It also increases sales during the spring and summer; houseplant sales peak during the holiday season.

Blank and Smith say they’re not interested in returning to physical retail—and Blank isn’t interested in going back to startup-style venture capital. She says the brand is “done” raising institutional capital. And she hasn’t seen many of her 2010s peers survive millennials’ evolution, either.

“Most brands, they’re comfortable with what they know, so they’ll just continue to act the same even as their customers age—or they’ll try and acquire the younger version of the customer,” she says.

Today, millennials want more than vibey houseplants. “How do you keep yourself grounded when everything else around you is changing so rapidly?” Blank says. “Gardening just reminds us that there is a payoff to being patient, and you can’t have everything give you instant gratification.”

Emma Hinchliffe
emma.hinchliffe@fortune.com

The Most Powerful Women Daily newsletter is Fortune’s daily briefing for and about the women leading the business world. Today’s edition was curated by Sara Braun. Subscribe here.

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– BBB. The Senate passed President Trump’s “big beautiful bill;” the massive tax and spending bill opposed by former Trump ally Elon Musk now goes to the House for a vote. Sen. Susan Collins (R-Maine) was one of three Republicans to vote against the bill, which will significantly cut the American social safety net. Sen. Lisa Murkowski (R-Alaska), another closely watched swing vote, ended up voting in favor. CNN

– Bankruptcy bid. Anne Wojcicki won court approval to buy back the assets of 23andMe, the bankrupt genetic testing company she founded, for $305 million. She won out against Regeneron Pharmaceuticals, which was also vying for the purchase. AP

– Security to safety. WNBA team the Chicago Sky struck a deal with Moonshot, a counterterrorism startup. The startup will use its technology to protect Chicago Sky players from online abuse and harassment. Chicago Sky star player Angel Reese, now in her second year in the league, has been one of the most affected by a rise in hate speech and abuse among women’s basketball viewers. The Information

MOVERS AND SHAKERS

The Ford Foundation announced the appointment of Heather K. Gerken as the organization’s incoming president. She currently serves as the dean of Yale Law School. 

BBG Ventures, a New York-based early stage venture fund, promoted Claire Biernacki to partner. 

Vimeo appointed Rose Frawley as its chief people officer. She most recently was the chief people officer at YipitData, a data and analytics firm. 

The Newsette, a women’s newsletter, announced the appointment of Alexandra Pastore as its new vice president of content. She most recently served as the deputy editor of strategic content development at WWD.

Go1, a content aggregator for L&D leaders, appointed Jenny Dearborn to its board of directors. She currently serves as the chief people strategy officer at BTS. 

Lavoir Pharma Inc., a pharmaceutical company that specializes in diabetic wound and skin treatments, announced the appointment of Dr. Imaze Marian Davis as chief medical officer. She previously served as the director of the Wound Healing Center at North Shore Medical Center. 

Hyland, a unified content, process, and application intelligence platform, appointed Nanette Lazina as senior vice president, global channels and OEMs. She most recently served as chief partner officer at SAP. 

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PARTING WORDS

“I’ve looked at some of the bad things as little gifts. That propelled me. That made me discover strength that I didn’t know I had, or made me stand up and say, ‘I’ll prove you wrong, and I’ll do this.’ It moved me forward.” 

Model Christie Brinkley on what she learned while writing her new memoir



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Fed chair race: Warsh overtakes Hassett as favorite to be nominated by Trump

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Wall Street’s top parlor game took a sudden turn on Monday, when the prediction market Kalshi showed Kevin Warsh is now the frontrunner to be nominated as the next Federal Reserve chairman, overtaking Kevin Hassett.

Warsh, a former Fed governor, now has a 47% probability, up from 39% on Sunday and just 11% on Dec. 3. Hassett, director of the National Economic Council, has fallen to 41%, down from 51% on Sunday and 81% on Dec. 3.

A report from CNBC saying Hassett’s candidacy was running into pushback from people close to President Donald Trump seemed to put Warsh on top. The resistance stems from concerns Hassett is too close to Trump.

That followed Trump’s comment late Friday, when he told The Wall Street Journal Warsh was at the top of his list, though he added “the two Kevins are great.”

According to the Journal, Trump met Warsh on Wednesday at the White House and pressed him on whether he could be trusted to back rate cuts. 

The report surprised Wall Street, which had overwhelming odds on Hassett as the favorite, lifting Warsh’s odds from the cellar.

But even prior to the Journal story, there have been rumblings in the finance world Hassett wasn’t their preferred choice to be Fed chair.

At a private conference for asset managers on Thursday, JPMorgan Chase CEO Jamie Dimon signaled support for Warsh and predicted Hassett was likelier to support Trump on more rate cuts, sources told the Financial Times.

And in a separate report earlier this month, the FT said bond investors shared their concerns about Hassett with the Treasury Department in November, saying they’re worried he would cut rates aggressively in order to please Trump.

Trump has said he will nominate a Fed chair in early 2026, with Jerome Powell’s term due to expire in May. 

For his part, Hassett appeared to put some distance between himself and Trump during an appearance on CBS’ Face the Nation on Sunday.

When asked if Trump’s voice would have equal weighting to the voting members on the rate-setting Federal Open Market Committee, Hassett replied, “no, he would have no weight.”

“His opinion matters if it’s good, if it’s based on data,” he explained. “And then if you go to the committee and you say, ‘well the president made this argument, and that’s a really sound argument, I think. What do you think?’ If they reject it, then they’ll vote in a different way.”



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What happens to old AI chips? They’re still put to good use and don’t depreciate that fast

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New AI chips seem to hit the market at a quicker pace as tech companies scramble to gain supremacy in the global arms race for computational power.

But that begs the question: What happens to all those older-generation chips?

The AI stock boom has lost a lot of momentum in recent weeks due, in part, to worries that so-called hyperscalers aren’t correctly accounting for the depreciation in the hoard of chips they’ve purchased to power chatbots.

Michael Burry—the investor of Big Short fame who famously predicted the 2008 housing collapse—sounded the alarm last month when he warned AI-era profits are built on “one of the most common frauds in the modern era,” namely stretching the depreciation schedule. He estimated Big Tech will understate depreciation by $176 billion between 2026 and 2028.

But according to a note last week from Alpine Macro, chip depreciation fears are overstated for three reasons.

First, analysts pointed out software advances that accompany next-generation chips can also level up older-generation processors. For example, software can improve the performance of Nvidia’s five-year-old A100 chip by two to three times compared to its initial version.

Second, Alpine said the need for older chips remains strong amid rising demand for inference, meaning when a chatbot responds to queries. In fact, inference demand will significantly outpace demand for AI training in the coming years.

“For inference, the latest hardware helps but is often not essential, so chip quantity can substitute for cutting-edge quality,” analysts wrote, adding Google is still running seven- to eight-year-old TPUs at full utilization.

Third, China continues to demonstrate “insatiable” demand for AI chips as its supply “lags the U.S. by several generations in quality and severalfold in quantity.” And even though Beijing has banned some U.S. chips, the black market will continue to serve China’s shortfalls.

Meanwhile, not all chips used in AI belong to hyperscalers. Even graphics processors contained in everyday gaming consoles could work.

A note last week from Yardeni Research pointed to “distributed AI,” which draws on unused chips in homes, crypto-mining servers, offices, universities, and data centers to act as global virtual networks.

While distributed AI can be slower than a cluster of chips housed in the same data center, its network architecture can be more resilient if a computer or a group of them fails, Yardeni added.

“Though we are unable to ascertain how many GPUs were being linked in this manner, Distributed AI is certainly an interesting area worth watching, particularly given that billions are being spent to build new, large data centers,” the note said.



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‘I had to take 60 meetings’: Jeff Bezos says ‘the hardest thing I’ve ever done’ was raising the first million dollars of seed capital for Amazon

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Today, Amazon’s market cap is hovering around $2.38 trillion, and founder Jeff Bezos is one of the world’s richest men, worth $236.1 billion. But three decades ago, in 1995, getting the first million dollars in seed capital for Amazon was more grueling than any challenge that would follow. One year ago, at New York’s Dealbook Summit, Bezos told Andrew Ross Sorkin those early fundraising efforts were an absolute slog, with dozens of meetings with angel investors—the vast majority of which were “hard-earned no’s.”

“I had to take 60 meetings,” Bezos said, in reference to the effort required to convince angel investors to sink tens of thousands of dollars into his company. “It was the hardest thing I’ve ever done, basically.”

The structure was straightforward: Bezos said he offered 20% of Amazon for a $5 million valuation. He eventually got around 20 investors to each invest around $50,000. But out of those 60 meetings he took around that time, 40 investors said no—and those 40 “no’s” were particularly soul-crushing because before getting an answer, each back-and-forth required “multiple meetings” and substantial effort.

Bezos said he had a hard time convincing investors selling books over the internet was a good idea. “The first question was what’s the internet? Everybody wanted to know what the internet was,” Bezos recalled. Few investors had heard of the World Wide Web, let alone grasped its commercial potential.

That said, Bezos admitted brutal honesty with his potential investors may have played a role in getting so many rejections.

“I would always tell people I thought there was a 70% chance they would lose their investment,” he said. “In retrospect, I think that might have been a little naive. But I think it was true. In fact, if anything, I think I was giving myself better odds than the real odds.”

Bezos said getting those investors on board in the mid-90s was absolutely critical. “The whole enterprise could have been extinguished then,” he said.

You can watch Bezos’ full interview with Andrew Ross Sorkin below. He starts talking about this interview gauntlet for seed capital around the 33-minute mark.

This story was originally featured on Fortune.com



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