Diligence checklist: what founders should prepare

In this episode of the Startup CPG Podcast, host Hannah Dittman sits down with Nate Cooper, investor at Barrel Ventures, to explore what early-stage food and beverage investors look for when backing emerging brands. The conversation dives deep into evaluating product-market fit, understanding what drives conviction in early-stage deals, and why founder characteristics matter just as much as metrics when building a fundable CPG brand.

Nate shares his unconventional path from multi-generational food industry roots to failed entrepreneur to successful angel investor—landing Olipop as his very first check. He discusses how Barrel Ventures approaches pre-seed to Series A investments with hyper-specialized focus on anything that touches food, from pre-farm to post-fork. Drawing from portfolio wins like Olipop, Gonanas, and Nowadays, Nate reveals what separates compelling opportunities from brands that aren't quite ready—and how founders can position themselves before they start raising capital.

Throughout the episode, listeners gain insider perspective on building investor relationships, the founder traits that signal long-term success, and practical advice on metrics that matter: velocity over door count, margin structures relative to category benchmarks, and the power of compounding growth over hypergrowth. Nate emphasizes his litmus test for investment decisions: "Would I work for this person?" He also shares why non-consensus bets often become the biggest winners, how GLP-1s and wearables are reshaping food consumption, and why humility, grit, and team-first language are green flags for early-stage backers.

Whether you're building toward your first institutional round or evaluating angel investors, this conversation offers clarity on what early-stage food investors care about most when backing mission-driven founders building real, durable businesses.

Listen in as they discuss:

• Nate's path from multi-generational food family to failed founder to early Olipop investor
• Barrel Ventures' thesis: pre-seed to Series A, pre-farm to post-fork, $100K-$750K checks
• Why velocity matters exponentially more than door count when scaling retail
• Evaluating margins relative to category benchmarks and line of sight to profitability
• The "messy middle" of CPG growth: slotting fees, distribution, team building, and inventory
• Why compounding steady growth (3 triples, 2 doubles) beats hypergrowth in CPG
• The power of habit formation: products that become ingrained in daily routines
• Pattern recognition: identifying founder traits that signal resilience and execution
• Nate's investment litmus test: "Would I work for this person?"
• Why non-consensus bets (Olipop, Nowadays) often become category-defining brands
• Market trends: GLP-1 impact on food vs. alcohol, protein positioning, AI applications
• Founder characteristics that matter: humility, grit, "we" vs. "me" language
• How to prepare for diligence: deck, model, sell sheet, org chart, and radical transparency
• Why showing your warts early builds trust better than hiding them
• Advice for operators transitioning to investing: network building and karma-driven connections

Episode Links:

Barrel Ventures
Website: http://www.barrelvc.com
LinkedIn: https://www.linkedin.com/company/barrel-ventures/about/ 

Nate Cooper - Investor, Barrel Ventures
LinkedIn: https://www.linkedin.com/in/nathan-cooper-2ba9aa19/ 

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• Episode music by Super Fantastics