Morgan Spenla: Founder & CEO of Crafter

Episode 618

On this episode of The Kara Goldin Show, we’re joined by Morgan Spenla, the visionary Founder and CEO of Crafter—a game-changing platform bringing hands-on, creative learning to life for makers everywhere. 🚀 Morgan has created the ultimate home for artists and makers of all levels to connect with each other, learn from top experts, and dive into immersive workshops from the comfort of home. Whether it’s stained glass, needle felting, or woodturning, Crafter has it all, with high-quality instruction that makes it easy to explore creativity.
Morgan shares the journey of building Crafter, from securing partnerships with major names like Girl Scouts and Anthropologie to hosting in-person Crafter Retreats that foster a deeper community connection. As a seasoned entrepreneur, Morgan has taken Crafter through startup accelerators, fundraised like a pro, and scaled her vision into a thriving movement that’s redefining creative discovery. Tune in to hear Morgan’s inspiring story and insights on building community, driving innovation, and the power of hands-on learning. Don’t miss it! Now on The Kara Goldin Show!

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Transcript

Kara Goldin 0:00
I am unwilling to give up that I will start over from scratch as many times as it takes to get where I want to be. I want to be you. Just want to make sure you will get knocked down. But just make sure you don’t get knocked out, knocked out. So your only choice should be go focus on what you can control. Control. Hi everyone, and welcome to the Kara Goldin show. Join me each week for inspiring conversations with some of the world’s greatest leaders. We’ll talk with founders, entrepreneurs, CEOs and really, some of the most interesting people of our time. Can’t wait to get started. Let’s go. Let’s go. Hi everyone. It’s Kara Goldin from the Kara Goldin show. I’m so excited to have our next guest. Here. We are interviewing Morgan Spenla, who is the mastermind behind Crafter. And if you have not visited Crafter, you must, must, must go to Crafter the go to spot for hands on creative learning that’s blowing up the crafted world. And Morgan built Crafter to be the place for makers and artists of all levels. We are actually on this incredible group list together called the list that we originally met through that, but I remember when she was first starting, and we’ve been trying to get her on here for a while now, but through that time, she’s also inked some incredible partnerships with really interesting companies, including the Girl Scouts, Anthropologie, lots of really, really fun things going on, including Crafter retreats that you must hear about, especially with the season upon us, to do all kinds of really fun things. So I can’t wait to hear more from Morgan about what she is up to and what it’s like to not only launch an incredible company like this, but also scale it as she has. So welcome, Morgan, how are you?

Morgan Spenla 2:03
Oh, it’s so nice to be here. Kara, thank you so much Absolutely.

Kara Goldin 2:07
So let’s start with what is Crafter? In your words,

Morgan Spenla 2:12
yeah. So Crafter is a home for makers. So we have an incredible community online. You can find [email protected] we have an incredible community. We have online educational tools. We have actual physical kit of tools and materials to learn how to make over 200 different types of start to finish projects, whether that soldering stained glass art or all the way down to crochet kits for kids, all of our workshops come with educational content, and then we offer replenishment tools and materials directly on the site, so that if you fall in love with woodworking or metal smithing, you can come back for more supplies. And really the vision and the mission behind crofter was trying to support artists full circle so figuring out how we brought them into the conversation around shopping, for learning about and discovering new arts and crafts mediums. Because so many of us are creative. We have creative hobbies, or maybe we know somebody who has a creative hobby, I would venture to bet that everybody that’s listening right now has either tried out, found some type of passion and creativity, or know somebody, or lots of people in their circle, that that’s what they use for, for wellness, for for mental balance, for, you know, unwinding. And our mission is to serve them and the artists who are behind the entire Arts and Crafts movement community so forth. So

Kara Goldin 3:47
how did this actually get started? Were you always super into crafting? I actually grew up with a mom that had a million craft projects going on. We had a kiln in Yes, actually not in our house, but in our garage for years. So I was constantly encouraged to be crafting, and always laughing at my mom because she would get 90% of the way done. And then there was, like, that project that was hanging out there, and she came back to it years later. So when I heard you were launching this I was, I was really excited. I wish my mom was still around to see it, because she would have been your best customer, for sure. And you probably would have encouraged her to finish each of these projects instead of leaving them 90% of the way. Oh, I’m

Morgan Spenla 4:36
just like your mom. I think that in terms of having finished projects. So I, you know, I really appreciate the the time and energy that goes into making something and that process, that’s my favorite part of the journey. I think, you know, Crafters and hobbyists and makers, they have different things that they love, whether it’s the finished item that they can gift out to somebody, or maybe it’s the journey, or maybe it’s shopping for all the. Craft supplies and being able to go and, you know, squeeze all the plushy yarn and that sort of thing. But for me, it’s the journey. It’s actually sitting down hot cup of coffee Saturday morning outside. You know, maybe kids are sleeping in, and I’ve got, you know, my watercolor paper and my watercolors, and I am just kind of like in the zen of creating, and so most of my projects don’t get finished either. It’s kind of like, all right, I got what I needed out of that time to, you know, to move on to the next thing. So what I found is that creatives in general, and there are studies done that that back this up, they don’t practice just one hobby. They are creative by nature, and they really enjoy diving in to three or more. Most of them are up to 10 different to practice different types of creativity. But one of the hardest things to do is, if you say you learned how to knit from your grandma, is to is to to go out and stretch across into a different creative medium, whether that’s painting or or beading or woodworking or whatever it might be, because you have been sort of narrowly trained, you know, through family and friends and so forth and and trying something new feels so daunting. So figuring out how we could bring that to makers was the biggest goal. You know? How do we say, okay, you are a creative you enjoy doing this. Now. Let us introduce you to a dozen other creative outlets, and pick and choose what you like best. And sometimes you’re going to get addicted to that particular craft and you fall in love with it, and other times you’re like, Okay, I made a nominal investment, not an overwhelming you know, I bought this store Iowa, Joanne, type of investment, but I mean a nominal investment to try out a workshop I didn’t necessarily love it. I can show that, and I can move on to the next thing. So that’s that’s kind of what we do now, when

Kara Goldin 6:52
people are going on to your site, you’re selling them the the kit, essentially, of what they need in order to do these projects, the majority of your business is online, correct? And then the Now you’re also doing the retreats. Do you want to talk a little bit more about that?

Morgan Spenla 7:10
Yeah, so, so the business is nine years old, and we’ve been doing some version of workshop since the very beginning, and everything’s been digital. So you’re learning digitally from, you know, a beautiful, high produced or high quality production video. You’re getting the tools and materials that that artist has curated for their workshop shipped to your door, and you’re making at home, or maybe you’re inviting a bunch of girlfriends over and you’re making together, but you’re doing it in a home environment or on your own. And and during the pandemic, we noticed that there was huge demand, and then following that, there was our online community exploded. Um, there was a lot of conversations and relationship building. And, you know, online, um, quilting circles and this desire to build relationship around hobbies. Um, so we did something kind of fun. We partnered with anthropology, and we launched 40 mini gatherings in cities all over the US and offered sort of mini Crafters retreat experiences. And we sold out. So makers came and they got together and they created, and for us, it was a very clear signal that getting together and building this type of community in real life was going to be a next part of our journey. So we launched last November, the Crafters retreat, and we pulled together makers who want to craft in person and do these deep dives. We offer roughly 32 workshops that you get to choose from. And you know, whether it’s wood lathe turning or stained glass, mosaic art or fluid alcohol ink, something for everyone. And we bring these professional instructors in from all over the world, and they teach, they teach these deep dive series and crafting, and it’s really wonderful. And we cushion that with, you know, meetups and dinners and brunches, and we’re doing something really fun at next week’s retreat. It’s hard to believe that it’s already time for that, where we rented out a theater, and everybody is getting like, a fiber project, and we’re going to have the lights on at half half darkness. So we’re gonna all watch a movie together and and craft and make. And so we, we try and cushion the event with some really wonderful, um, just fun, you know, opportunities as well.

Kara Goldin 9:33
And where is that event at?

Speaker 3 9:36
Yeah, that’s in San Diego. So our, our home base is in San Diego, California, and we’ve held three of these events so far. I’d love to bring it on the road. I think it would be amazing. But most of our Crafters treat San Diego as this nice little vacation weekend, so it’s fun to host them here. Yeah,

Kara Goldin 9:53
it’s not a bad place to to have to go to a retreat at, for sure. So when you think. About, you know, kind of the early days of Crafter. You mentioned you started nine years ago. You went through a couple of different accelerator experiences, which I love to hear about. It. First of all, it’s unique that you went through an accelerator to start your company, but you went through two of them, and I think that that’s that’s a really interesting story, one that I was just talking to another founder the other day, who is a successful serial entrepreneur, and she’s actually going to go through an accelerator for next I was like, wait, you like, why would you do that? And it was interesting, I think, for her, the community and the energy and the drive of the of having other people who are sort of in that same mode was, you know, very was a magnet for her to be able to do that. So anyway, I’d love to hear your experience and and how you ended up doing two of them.

Morgan Spenla 10:59
Yeah, so sort of the origin story of Crafter. Back in 2015 I was on maternity leave, and I was working as the marketing director for a motion control company up in Silicon Valley. And I loved what I was doing. I have a passion on for the marketing and branding and the visual component of selling any kind of widget, but the particular widget I was selling I was not necessarily as passionate about. So I took that back and said, Okay, well, if I could do anything on the visual side and help to grow something and help to build something, I think what I’d really like to do is dive into something that I’m passionate about, which at the time and still is a huge part of my life, hobby, crafting, and by no means an artist, but I just love I love creating, and I love carving out that time. And so I reached out to a handful of artists and said, Hey, have this vision. If I launched, would you? Would you let me create a, you know, a digital workshop around what you do. You no longer have to go on these road shows of teaching an embroidery class in five different cities, and, you know, only 20 people at a time, I will help you, you know, expand and grow the way that you’re able to reach your audience. And a lot of these artists already had built really large audiences that they were engaging with on a very regular basis. So I had, initially, I had, I think it was eight artists say yes, and I flew them to San Diego, and I worked with the production crew, and I built the first set of workshops, and then launched with our we January of 2016 was our very first workshop launch. We did pre orders through Christmas to kind of help fund the company. And then we we hit go. And so I did, I bootstrapped the company for the first four years, and we saw a lot of success. The growth side of it was very up into the right I was recruited into my first accelerator, which was called Project entrepreneur was actually a podcast that I listened to on a very regular base basis, and it’s run by the two founders of Rent the Runway, and then UBS was their partner. So 800 women applied. 10 women were invited to incubate their companies in New York. I moved to New York at the time. I had three kids for now and for the summer, and it was an incredible experience. I mean, I just have nothing, but the most, the best thing is to say it wasn’t like a traditional accelerator. It was more of an exposure experience where we went to a variety of female founded businesses, some of which were unicorns and just learned internally by being kind of a fly on the wall or having a desk in those spaces. So at the time, I was at Jet Black, which was Jenny Fleiss project at the time, and and also at the Rent the Runway office, and like, what a summer and I was flying back and forth every weekend, or having even having my family come out for a few weeks. It was exhausting. It was incredible, and it opened my eyes to the ways that I could grow Crafter. So following that, in 2018 I was actually called by I did a couple of pitch events in San Diego, and then was recruited into Tech Stars, which is really an accelerator that you want to focus on. If you’re you’re looking to fundraise, that’s a great accelerator to learn how to raise capital and to apply that capital in a way that you know you can pour it into a sales funnel, and you can help the company grow quite quickly. The mentorship through TechStars is incredible. I’m currently a mentor now, and have for the past couple of years, started to work with younger companies, just because it’s so powerful, and that ecosystem just gives you that juice to kind of be creative and keep going. So that I did. TechStars program in 2020 right as the pandemic was was hitting, and we were actually in anywhere with the TechStars, anywhere class, which is almost entirely virtual. So the pandemic didn’t affect us too much, but it did allow me to fundraise during probably one of the hardest years of fundraising, and we brought on institutional capital angels who have continued to support the growth of capital, or excuse me, the growth of Crafter, and it’s been nothing but an amazing experience. So lots of great things to say about accelerators.

Kara Goldin 15:32
That’s amazing. So one of the things I was going to also ask you about was the fundraising you touched on that. So what have you learned about fundraising? I mean, there’s, you know, lots of lots out there around the very how difficult it is, especially for female founders. I think today it’s hard for every founder to raise capital and in this market. But what’s the most maybe surprising aspect of fundraising? You know, whether it’s institutional or venture or or even, you know, angels that you’ve been, you know, kind of surprised to learn in this process. Yeah,

Morgan Spenla 16:14
I think something that was really hard to initially. So prior to going through TechStars, I did start a fundraising process, and I find it to be sort of like a private club, like there is a an element of, who do you know? How can you get in front of them? What language do you speak in terms of, like, how to speak to VCs, how to speak to LPs, how to get the interest of so there was, like a retraining that I think a lot of people may not have access to unless they they do participate in some type of preparation, whether that’s a course or a, you know, a class in college, or an accelerator, an incubator. A lot of big VCs have, like, demo days, you know, but there you really kind of have to just spend a good amount of time learning about that world. And it does feel like it’s pretty cloistered, like there is sort of like a who’s in and who’s out. What I love about our local community here in San Diego is that is so inclusive. It’s not like fundraising in San Francisco or New York or some other areas. And actually, most of our cap table is San Diego. Not definitely, not all, but maybe, maybe 50% of our cap table is San Diego. And that’s inspiring, because there’s such an ecosystem of giving back. So if I were a founder who didn’t have those relationships yet, the first thing I would do is probably look right in my own hometown city to just see what resources are available locally. And there were mentors that took me under their wing and really invested time and helping me understand what a good process looks like, but what a learning curve. You know, there’s a lot there. Yeah,

Kara Goldin 18:04
definitely, I found, I think, probably the most surprising thing for me when we were raising capital was when I look back on the people that said, No, you know, I always tell people, Look, they people invest in, in what they know. And a lot of times, people won’t actually tell you that. So when I was starting hint, you know, I’m talking about my addiction to diet soda and how, you know, the how I found water boring, and frankly, the the room filled with a ton of men who, you know, they nod their head and say, oh, you know, gosh, my, my wife drinks Diet Coke. I’ve got to, like, talk to her about this. I never really thought of her as being addicted to it. And you know, it, it when I think back on those words, I also think that, you know, if go to the people that you think are, are going to get it right, if you’re if you’ve got something where they’re not really going to understand it. Did you find that as well that, you know, maybe some of these people weren’t very craft orientated, weren’t crafty at all. And those are really the people where it’s not that you don’t meet with them, but your expectations probably shouldn’t be as high. Yeah,

Morgan Spenla 19:25
I think, I think we had, we were uniquely fortunate that we had such traction. And I had five years of company financials to show how we were interrupting this space. But the number one comment I also got back was, Oh, my wife does this, let me ask her. Or, you know, my daughter does this. Let me ask her. There was very little I understand the, you know, I’m showing, you know, one of my first slides in my pitch deck is showing a very crowded aisle at, like a local hobby store. And the, you know, the quantity. Over quality, and this idea of being able to learn and engage and grow and and have this be, you know, the experience that you have, and how antiquated it is, and it this untouched industry that, you know, just deserves to be caught up to where so many other industries that are of equal size, you know, $44 billion industry, it’s a huge industry. But you know, the the I’m not familiar with this was, was 100% the feedback that I got, and what I mostly had to just sort of rely on was like, Well, okay, you may not be familiar with this, but there’s 180 million Crafters in the US alone who are and look at how they buy, you know, and look at what their spending behavior looks like, and look at how we’ve been able to capture that market. Because I’m quite sure, had I been, you know, in my first year or just launching out and having those same conversations I would have had, you know, I had a ton of no’s, but I would not have been able to raise at all, because most, most investors are men, and they’re not. They’re not as familiar with this space, for sure. Yeah, that’s

Kara Goldin 21:06
that’s so interesting. So the world of maker culture is not just evolving, but is. It is also it’s growing, right? It’s more and more people. I mean, I think especially as people are splitting their time between, or, I should say, their their time, but not necessarily their location, we have more and more people working from home, and you know, they’re taking, they’re probably exercising a little bit more, but maybe they’re crafting more. How have you seen that trend kind of change for your audience, because you started before people were working from home, so much. But what have you seen that has been kind of interesting? Yeah,

Morgan Spenla 21:49
I think it’s definitely the industry has grown quite a bit, and it was very much accelerated by the pandemic. You know, there was the one of the huge benefits that we saw come out of that was the adoption of online education. So it actually unlocked quite a few audiences for us that may not have previously been interested in learning from an online video, and it forced an acceleration in absorbing content online. So what we have noticed is that, you know, maybe the what we call the legacy Crafters, or Crafters who previously would not have engaged with an online educational experience, have been the fastest growth opportunity for us, because it’s just like a new adoption of, oh yeah, this is no big deal. You know, logging in and watching a class is no big deal. But in terms of just Crafters across the across the spectrum. Gen Z is the fastest. I mean, if you’re in New York and you see someone with their headphones on and they are knitting like crazy, that’s now like a super common, you know, there’s just this idea of going back to and I think, in such a digital world, going back to something that’s tactile that, you know, kind of forces you to unplug a little bit and use your hands in a different way, whether you’re elbow deep in clay or you have knitting needles in them or woodworking tools. And there’s a wellness component there that I think many of us are saying, Yes, I need this. I need this in my world.

Kara Goldin 23:14
So one of the projects that I really enjoyed was the bench, which I know you guys are, are sold out of that right now, but that’s coming back very soon. But what were, what were the projects that you started with, and how has that grown?

Morgan Spenla 23:35
Yeah, so we’ve always been I love this word. I have to remember where I got it from, but someone told me that we were a multi craftual site, so we’ve always had this very, very wide breadth of what type of craft we offer. And the goal is to introduce you to these different techniques. So for example, that that the woven bench that you’re talking about is a mixture of woodworking, of weaving, weaving working with natural materials, like fiber rush. And if I can paint a picture for for listeners, picture sort of a Scandinavian style, raw wood bench that then has this, you know, very intricate, beautiful, woven design on the top of it. And what you’re doing is you’re assembling the bench, your your learning how to do basic furniture building where you’re using, you know, tools and so forth in that space. And then you’re learning how to weep using a natural material. And at the end, you have a very functional, gorgeous piece for the home. We have that in a footstool, like a slightly more digestible size as well. Our most popular workshop, one of our most popular workshops, for sure, and something we’re bringing back for the holidays, which I’m really excited about. Actually, just had a call with our woodworking team on that earlier this week, so it’s a good one, and I hope everyone keeps an eye out for it. But I think what our goal is is really to kind of get people engaged in these different craft. Testing areas, and then figure out, like, how does that journey keep going? Does that answer your question? I feel like I kind of just fun. A little bit of a

Kara Goldin 25:08
Yeah, no, no. So how many crafts, how many different ones did you start with, versus today?

Morgan Spenla 25:14
Oh sure, yeah. So our model in the very beginning, and this was back when subscription was a really prominent part of everybody’s, you know, whether it was meal kits or how you had your clothing delivered or so forth. We started out as a subscription model. And what that meant was that when it came to inventory planning and forecasting, it was very straightforward and easy. The company didn’t eat a lot of, you know, of its own revenue in, you know, physical product, which is always a concern when you have an E commerce company. And we just had two skews a month. We had our main featured workshop, which our first year, we featured 12 very different crafts. I mean, everything under the sun, everything was so different. And then we had sort of an upsell. So if you love cyanotype, maybe you’re also going to like this kit and doing a much bigger cyanotype project, or a frame for your cyanotype piece. And that’s a stunning technique that we launched our first year. And then after a couple of years, we realized the community was saying, wait a second, I just found out about you, but the class I really want to take you offered last year, and it’s gone now. And so we started doing these pop ups where we would restock inventory of our classes twice a year, once during the summer and once at Christmas time. And those exploded. So we played we grew very slowly in that, you know, in the new revenue stream area. So we started with subscription, then we added these twice annual pop up shops. Then we created an e commerce Store, which was kind of a permanent pop up shop. And then we realized that that’s really where the juice was in terms of growth. And so we began to, you know, pivot to an almost entirely D to C community growth. You know what workshops are, and we would restock them sort of cyclically So, or maybe it would be seasonally based on whether it was a cozy fighter craft or it was a, you know, a sunshine summer craft, like pressing flowers. And then after that, we layered on. So we started a kids line. We started working wholesale. Um, that’s something that I’m really hoping to grow over the next couple of years. Started in person, events, online event, and got to where we are today.

Kara Goldin 27:24
That’s amazing. I always think that founders don’t always get credit for you know what they do to kind of help other audiences, maybe other entrepreneurs, so to speak, in your case, not just not just entrepreneurs or small businesses, but also artists, right that are trying to get the word out about what they’re about, what they’re doing, and you’re really giving them a platform to highlight what they’re doing and help build their businesses. We just had the founder of of gold belly, the co founder of gold belly on it was very similar conversation around that, and I would imagine some of the stories that you’ve heard from some of these artists you know. Thank you so much, Morgan for helping me, but I’d love to hear like, what comes to mind when I say that to you, like, Are there any cool stories of what you’ve been able to do to sort of help build somebody else’s business?

Morgan Spenla 28:28
Yeah. And you know, so the mission is to give artists a platform and a way to engage with their community in a different way, but also, like, a very careful focus on the raw materials that go in our kits as well. So in addition to supporting the artists that are making the videos and designing the course, we also have a goal of having at least one to two items that are artists and made in the kit that we are sourcing very thoughtfully. So we’re not just going to a mass production, you know, spot we all of our looms are handmade out of, out of a hardwood maple, and they’re designed, you know, just so so that, that they have a reputation out there of being an incredibly well made product. And we’re supporting a full woodworking, you know, they’re sort of in house, but it’s an, you know, craftsman and his wife and building that business, the dyes for our Shibori, we’re working directly with the the dye manufacturers in India so that we’re getting as authentic of a product as as possible. And that just kind of goes across every single kit that we have. You know, obviously there are utilitarian tools and materials in those kits, but the yarn is done in collaboration with a family mill in Italy. We’re the only ones that sell that yarn in the US, and oftentimes we can control what the color or the the makeup of that yarn is. It was actually over visiting that mill a couple of years ago and had the opportunity to learn how we could pull recycled product right in. To the yarn. And so they had this initiative where they were collecting discarded Merino, cashmere, etc, clothing did not matter. You know, what shape the clothing was in, because they broke down those structure, the structure of those fibers, added, added new fiber to it, and re spun that yarn to be a cashmere blend, yarn that we then used in our cashmere beanie workshop. So there’s components of being able to see how that impact, you know, goes around the world. We did this really neat project where we had all of the bags for a textile workshop done by, you know, artists and communities and third world countries. We worked directly through an agency that would give us access to just an incredible community of women who could build those bags for us in an impactful way. So there’s a give, there was a give back component, and the more that we can do and show that we are making a difference in this space, especially when the average consumer who shops for arts and crafts is getting, you know, what they don’t believe to be the best of quality in like that. You know, coupon heavy world where, you know they can, they can source supplies in that way, or they can do it in a very you know, if you’re going to, if you’re going to take the time to knit a sweater, man, how. What a beautiful story to know where the yarn came from, how it was dyed, how it was prepared for you, and that that becomes part of the story of that sweater that you get to tell everybody about, you know, when you’re wearing it. So that’s definitely one of the ways that we, that we try to make a bigger impact, in

Kara Goldin 31:41
addition to, I’m sure, all the community that you’re building in the friendships and and I would imagine that go on when people see other people who are like them on, you know, enjoying crafts and probably DMing each other, wondering what the Next one they’re taking? I would imagine that a lot of that is going on as well. So, so cool, Morgan, it’s I really appreciate you coming on and talking about the journey. And Crafter is awesome. Awesome, awesome. Everyone needs to go on and try it, do lots of different workshops, and we’ll have all the info in the show notes as well, but you are a terrific entrepreneur, and we’re so excited that you’re doing what you’re doing. And thanks again for sharing with us. Thank

Morgan Spenla 32:31
you for giving me this space, honored to be here today. So thank you, Kara.

Kara Goldin 32:35
Thanks again for listening to the Kara Goldin show. If you would please give us a review and feel free to share this podcast with others who would benefit. And of course, feel free to subscribe so you don’t miss a single episode of our podcast. Just a reminder that I can be found on all platforms. At Kara Goldin, I would love to hear from you too. So feel free to DM me, and if you want to hear more about my journey. I hope you will have a listen or pick up a copy of my Wall Street Journal, best selling book, undaunted, where I share more about my journey, including founding and building. Hint, we are here every Monday, Wednesday and Friday. Thanks for listening and goodbye for now. You.

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