# Melissa & Doug: Melissa And Doug Bernstein (2016)

- Show: [How I Built This](https://hardwarepodcasts.com/podcast/how-i-built-this)
- Published: 2018-02-05
- Length: 39m
- Page: https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016

## Summary

Melissa and Doug Bernstein, founders of the toy company Melissa & Doug, recount their journey from quitting high-powered careers to bootstrapping a business that now generates over $350 million in annual revenue. They detail their pivot from failed interactive VHS videos to creating tactile 'fuzzy puzzles' and reinventing wooden toys as an antidote to digital trends. The episode highlights their early struggles with distribution, a major failure with the 'Puzzle World' product line, and their eventual decision to bring in outside investors after 20 years of self-funding.

## Chapters

- [0:00](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=0) Introduction: Melissa and Doug Bernstein
- [2:42](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=162) Quitting Jobs and Brainstorming in a Hotel Room
- [6:23](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=383) Producing and Selling Interactive VHS Videos
- [10:42](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=642) Learning Distribution Lessons and Naming the Company
- [14:31](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=871) Pivoting to Puzzles and the Agent Betrayal
- [21:54](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=1314) Reinventing Wooden Toys and Bootstrapping
- [25:01](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=1501) The 'Puzzle World' Failure and Retailer Education
- [30:04](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=1804) Staying True to Mission and Bringing in Investors
- [35:20](https://hardwarepodcasts.com/podcast/how-i-built-this/2018-02-05-melissa-doug-melissa-and-doug-bernstein-2016#t=2120) Postscript: Joshua Esnard and The Cut Buddy

## Topics

- [Starting a product company](https://hardwarepodcasts.com/topic/starting-a-company)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Retail, wholesale & distribution](https://hardwarepodcasts.com/topic/retail-and-distribution)
- [Industrial & consumer product design](https://hardwarepodcasts.com/topic/industrial-design)
- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)

## Most relevant to

founders before launch, early-stage companies, companies scaling up

## Mentioned

- Morgan Stanley (company)
- Puzzle World (product)
- Thomas the Tank Engine (product)
- Brio (product)
- The Cut Buddy (product)
- Shark Tank (other)
- Target (company)

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- [Founder + Funder: Fundraising, Founder-Investor Fit, and Building the Next Big Breakfast Brand with Emily Groden of Evergreen and Brian Bernstein of Rich Products Ventures](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2026-06-20-founder-funder-fundraising-founder-investor-fit-and-building-the-next-big-breakf) (The Startup CPG Podcast)
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- [Afterschool Podcast, Episode 9 - Rusty Meadows (10/21)](https://hardwarepodcasts.com/podcast/core77-podcast/2013-11-05-afterschool-podcast-episode-9-rusty-meadows-10-21) (Core77 Podcast)

## Citing this page

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