Kabir Shahani, who left his position as CEO of Seattle-based marketing tech startup Amperity without public explanation last week, is also no longer on the company’s board, according to people with knowledge of the situation.
In a phone call responding to GeekWire’s inquiry over the weekend, Shahani said he left the company voluntarily for personal reasons. Amperity executives including new CEO Barry Padgett have not answered or acknowledged messages over the past week seeking comment on the reasons for Shahani’s departure.
One of the company’s board members, Matt McIlwain, managing director at Madrona Venture Group, said via email that he could confirm that Shahani had resigned from the company last week. McIlwain did not address questions about the circumstances leading up to the resignation.
In addition to McIlwain, the Amperity board includes Accolade CEO Raj Singh, who referred an inquiry to the company; Starbucks CEO Kevin Johnson; and singer-songwriter Ciara, neither of whom could be reached for comment.
While it’s not unusual for startup founders to hand the reins to other leaders as companies grow, experts in corporate governance and startup leadership say a gradual or staged transition is the norm to ensure continuity. Mechanisms can include remaining on the board or serving as advisor during a transition period.
“The best transition is one that’s planned, period,” said Bruce Avolio, a professor of management at the University of Washington Foster School of Business, and executive director of the UW Center for Leadership & Strategic Thinking.
Padgett, a veteran of Concur Technologies and former chief revenue officer at Stripe, joined Amperity two years ago and was previously COO and president.
Shahani co-founded Amperity in 2016 with CTO Derek Slager, who continues to serve in that role. The two entrepreneurs previously co-founded Appature, a health marketing startup that sold to IMS Health in 2013.
The management transition comes seven months after Amperity was valued at more than $1 billion in a $100 million funding round, reaching elite “unicorn” startup status. At the time, the company employed 225 people, with offices in Seattle and New York, and planned to increase headcount to 300 people by the end of the year.
The announcement of Shahani’s departure was made in an Amperity blog post, titled “Leadership for our Next Phase of Growth,” published last Friday afternoon, Feb. 4.
The company said it was making changes for its “next stage of growth and global expansion,” explaining that Padgett had been promoted to CEO, “taking the reins from Kabir Shahani, who recently stepped down from the post.”
As part of the post, Amperity also introduced Monica Pool Knox as its first chief people officer. She previously worked in executive human resources roles at Microsoft, LivePerson, Twitter and The Walt Disney Co.
The post described 2021 as “a record growth year for Amperity, fueled by continued acceleration in digital transformation and increased emphasis on the importance of first party-data.”
Shahani was not quoted in the announcement.
In a message to friends, a version of which was seen by GeekWire, Shahani said Amperity has been his “all-consuming passion” since its founding. He wrote that his focus on the company had put his health and well-being at risk, and kept him from being “emotionally and mentally present” with the loved ones in his life.
“This led me to my decision to follow an unexpected path — stepping away from the company I co-founded and love so I will have the time for some overdue self-care, and being truly present with my family,” he wrote, in part. “The way I’m wired, I simply can’t do this work while occupying an office that I so deeply value and respect.”
He added, “While that is the reality in the short term, I don’t expect that to be the case for the rest of my professional life.”
Shahani concluded by expressing pride in what the Amperity team has created, and confidence in Padgett, Slager, and the rest of the team. He wrote that they “will be massively successful in continuing the company’s rapid growth,” and added that the company “will always be a big part of my life.”
Amperity has raised $187 million in funding to date, according to startup and venture capital database Pitchbook. In addition to Madrona Venture Group, Amperity’s backers include HighSage Ventures, Tiger Global Management, Declaration Partners, and Madera Technology Partners.
