Houseparty CEO meets the 'massive technical challenge' of coronavirus video chat demand

April 27, 2020

Good morning, Broadsheet readers! AutoNation returns almost $80 million in government coronavirus relief, black leaders push Joe Biden to put a black woman on his ticket, and the chief executive behind Houseparty works to meet unprecedented demand. Have a productive Monday.

– Sistani in the House. The vast majority of the video-chat businesses suddenly at the center of nearly all social interaction—like those of Microsoft, Google and the newly ubiquitous Zoom— are run by men. Sima Sistani is the rare female social video founder and CEO dealing with the increased demand of a global pandemic.

Sistani co-founded Houseparty, a platform that lets users chat and play games in a more informal and spontaneous setting than the usually scheduled Zoom call. Since the pandemic began, Houseparty has added 50 million users, with especially strong growth outside the U.S.

Houseparty was acquired by Fortnite maker Epic Games for an undisclosed sum last year, and Sistani says the company wouldn’t have been equipped to keep its service running over the past few weeks if it were still in startup mode. “Being able to support an influx of new signups while also being able to support higher concurrencies than ever before is a massive technical challenge,” Sistani told me in a phone interview (she wanted to talk over Houseparty, of course, but I didn’t get the desktop version set up in time). “It’s difficult even when it’s sustainable day-over-day growth, and it ended up being so much bigger than that.”

Sistani has been hesitant to speak publicly about Houseparty’s unprecedented growth for fear of appearing to capitalize on global tragedy. And at the same time as she’s navigating these significant technical challenges, she’s also leading a workforce of about 100; a longtime advocate for paid leave in Silicon Valley, she’s figuring out how to translate that commitment to the kind of resources employees need for their mental and physical health now.

“I’d hate for people to think we’re taking a victory lap on this,” she says. “But while this was happening we buckled down around the great responsibility we had to keep the app stable for those needing it to connect with each other.”

Emma Hinchliffe
emma.hinchliffe@fortune.com
@_emmahinchliffe

ALSO IN THE HEADLINES

- Alleged mastermind. A shareholder lawsuit accuses Shari Redstone of forcing through the CBS-Viacom merger to protect her financial interest in Viacom. The lawsuit paints Redstone as a "deal-making mastermind;" ViacomCBS says the complaint is "without merit." Wall Street Journal

- Which woman? Joe Biden has pledged to choose a woman as his vice president, and black leaders are pushing the presumptive Democratic nominee to put a black woman on his ticket. Those influential figures, though, are divided about whether Sen. Kamala Harris, Stacey Abrams, or someone else should get the spot. New York Times

- Dealer's choice. Car dealership network AutoNation, which was led by CEO Cheryl Miller until she took a recent health-related leave of absence, received at least $77 million in government money through the Paycheck Protection Program. The company received the payout by applying through its individual dealerships. Amid questions about why such a large company should qualify for the aid even as small businesses struggle to qualify, AutoNation's board voted to return the funding. Washington Post

- Dictatorship dynasty. With conflicting reports out this weekend about the health of North Korean leader Kim Jong Un, his sister Kim Yo Jong is getting a closer look. This New Yorker piece examines how she could lead the patriarchal and sexist regime. The New Yorker

MOVERS AND SHAKERS: The Biden campaign replaced Democratic National Committee CEO Seema Nanda with Mary Beth Cahill.

Content From Deloitte
More socially responsible
Companies are pledging to lead with benefits to customers, employees, suppliers, and communities. Deloitte’s Global survey of C-suite executives finds that more business leaders want to find the balance between profit and purpose. Read more

A note from Fortune's editor-in-chief

Listen Now: Sustainable Priorities, Fashion Icons

This week, in a nod to Earth Day and businesses’ increasing focus on sustainability, the Leadership Next podcast features Eileen Fisher, a unique entrepreneur who has been putting purpose at the center of her company since 1984. Also in this week’s episode, the founders of the fashion label Public School share how they are retooling their business to become a more sustainable brand. Listen here or wherever you enjoy podcasts.

Clifton Leaf

IN CASE YOU MISSED IT

- City and state. Governors and mayors have been praised for their coronavirus responses, but leaders in the two positions have often sparred with each other. From Atlanta Mayor Keisha Lance Bottoms and Georgia Gov. Brian Kemp to Las Vegas Mayor Carolyn Goodman and Nevada Gov. Steve Sisolak to Portland Mayor Ted Wheeler and Oregon Gov. Kate Brown, the disagreements run the gamut. LA Times

- Quota for quota alternatives. Female board members want greater gender representation in directorships, but many are uncomfortable with government-imposed quotas. Here, the Diligent Institute's Dottie Schindlinger argues in favor of three alternative ways to increase board diversity: Fortune

- Childcare restrictions. In Japan, children of medical professionals are being barred from daycare centers unless their parents can prove they aren't infected with the coronavirus. The lack of access to childcare is leading some nurses and doctors, especially women, to quit the workforce. Bloomberg

- The risks of Ramos. Last week's Supreme Court decision on Ramos v. Louisiana was about divided juries—but it's causing some worry about the future of Roe v. Wade. The decision showed some willingness on the court to overrule precedent, which makes it more likely that the conservative majority could do the same on abortion rights. Washington Post

ON MY RADAR

Recipe queen Alison Roman’s popularity, explained by Alison Roman Vox

FOMO is over. Give in to the Joy of Letting Go New York Times

Tory Burch is fighting for US fashion’s aid Vogue Business