# Empowering Workers: Logan LaHive's Vision with Frank
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Chapter 1: Introduction to Logan LaHive and Frank
Logan LaHive is a notable figure in the tech startup world, particularly for his commitment to empowering workers. As the founder of Frank, a software platform designed to help employees organize and advocate for their rights, he stands at the forefront of a movement that addresses the significant power imbalance in workplaces today. As workers increasingly reject the notion of being part of a "family" while feeling exploited, Logan is here to discuss the mission of Frank and whether seeking venture capital has altered his vision for this important endeavor.
Section 1.1: The Mission Behind Frank
Hunter Walk: Frank serves as a platform for employees to organize and safeguard their rights. When I read this, I immediately think of unionization. Is that the ultimate goal, or just one of many strategies?
Logan LaHive: To start, we must recognize the urgent issue at hand. The significant power disparity in workplaces is a key driver of rising income inequality, which, alongside climate change, is one of the most pressing challenges we face today. While I don’t claim to have a definitive solution, I strongly believe that empowering workers to express their voices in the workplace is a crucial first step. Unionizing is certainly one effective method, as it is the most recognized and legally protected avenue for achieving worker power.
There are other methods as well, such as collective action, solidarity unionism, independent unions, employee resource groups (ERGs), and more. Each approach has its own merits and may be suitable in different contexts. However, it's important to acknowledge that forming a union is intentionally challenging, thanks to decades of corporate lobbying and inadequate enforcement of labor laws, which create significant barriers.
The advantages of unionization extend beyond just better wages and working conditions; it provides workers with the backing of seasoned representatives for collective bargaining. Employers are legally required to negotiate in good faith, although interpretations of "good faith" can vary widely.
At Frank, our mission is to equip workers with the tools they need not only to express their opinions but to ensure those opinions are genuinely heard. Our software is specifically designed to facilitate the unionization process, offering a private and customizable platform for organizers to assist workers from initial interest to the submission of union authorization cards. While we wholeheartedly support all efforts to improve workplace conditions, our focus is on enhancing software for unions to streamline and broaden the organizing process.
Section 1.2: The Future of Unionization
HW: We’re witnessing a surge of workers from various sectors, like those at Amazon, seeking to unionize. What’s your perspective on this trend? Do you foresee a new wave of service and trade workers embracing unions?
LLH: Absolutely. This is a clear trend. Union elections are on the rise, and support for unions among individuals under 35 is comparable to support for marriage equality and cannabis legalization. Nearly half of all workers in the U.S. would opt to join a union if given the chance.
Workers are frustrated and are no longer willing to accept empty platitudes from bosses who earn 350 times their pay while conducting layoffs via Zoom from luxurious settings. Change is inevitable, though the pace and impact of unionization in the private sector remain uncertain.
Many people associate “union” with a singular, traditional model, but the reality is much more diverse. We could see a blend of collective actions, independent unions, worker-led initiatives, and more worker centers. If you're reading this and work at a company with over 100 employees, there's a 98% chance that at least two of your colleagues are contemplating unionizing. However, the difficulty of the process needs to be addressed.
Chapter 2: The Venture Capital Dilemma
HW: Frank is backed by venture capital. I assume your fundraising experience this time around differed from your previous startup. Did you encounter skepticism about your mission?
LLH: It’s been an intriguing journey. Raising funds to tackle this issue has been a privilege. As a straight, cisgender white male with a background in tech and startups, I’ve developed many relationships within the VC space over the years. However, creating tools for unions is not a category that most investors are eager to support. I’ve received numerous swift rejections and have noticed some old contacts are no longer as responsive.
The discourse around unions often triggers strong reactions—many VCs have preconceived notions about unions, sometimes influenced by outdated narratives. It's amusing how personal biases can cloud judgment on this subject, while other new categories are approached with a level of curiosity.
Although socialists may oppose venture capital and VCs often view unions negatively, addressing significant challenges in the labor sector requires funding. This funding is necessary to honor the contributions of our team, support the unions we partner with, and continuously enhance our offerings. We lacked access to union funding or grants, so I relied on self-funding for longer than advisable.
Our goal isn’t to chase venture backing or market valuation; it’s to create meaningful solutions in a historically underfunded space. We’re committed to focusing on our mission and delivering value to our union partners.
HW: Reflecting on your previous venture, Belly, a loyalty/retention startup, what were the key lessons learned?
LLH: When we launched Belly in 2011, we were aware of numerous competitors in the loyalty sector. Our quick success stemmed from engaging closely with small business owners to understand their needs, rather than what we thought was trendy in tech circles. Many competitors were overly focused on mobile features that were not yet widely adopted.
We successfully marketed to business owners, creating a platform that catered to their clientele, essentially turning their stores into direct marketing channels. However, as we grew, I lost sight of whether our aggressive growth strategy was genuinely beneficial. The decision to operate outside the core point-of-sale systems ultimately limited our potential, as we were merely an add-on rather than an essential service.
HW: Considering the recent trends in remote work and the proliferation of startups across various regions, how do you view Chicago's standing in the startup ecosystem?
LLH: I’m not certain. Local VCs may tout Chicago's success, citing various statistics, but I’m skeptical. There are advantages to different markets, but the dynamics of remote work are here to stay. I’m still figuring out how to lead effectively in this new environment. My commitment to Chicago remains strong, and I’m focused on adapting to these evolving norms.
Thanks, Logan!