Carle Stenmark (VMG) - Why a consumer PE firm also has a $400m technology fund, the evolution of his thesis, and why VMG rebranded

Thank you Deb Benton for introducing me to Carle Stenmark, General Partner at VMG. VMG, short for Velocity Made Good, is one of the premier consumer private equity funds known for their investments in KIND, Quest Nutrition, Sun Bum, and Justin’s. However, Carle leads VMG’s technology practice and recently the firm went through a bit of a rebrand, which we will discuss. This conversation is around why and what types of technology companies VMG invests in. Without further ado, here’s Carle.

Some of the questions I ask Carle:

1. What attracted you to consumer investing?
2. How did you end up working at VMG?
3. What’s VMG Philosophy
4. When I think about VMG I think KIND Bars, Quest, Sun Bum, Natural Balance, Drunk Elephant, brands that have to work in retail where you make your money shipping pallets and not individual orders like to do online. Why create VMG Catalyst What was the original thesis?
5. How has VMG evolved? Why do a rebrand?
6. Did you have to present this rebrand for LPs? Does it change how your funds get deployed?
7. How do you approach tech investing and how is it different from consumer investing?
8. What’s the added value from VMG? What’s the way you’re able to make introductions?
9. The evolution That was the rebrand 
10. What’s your typical check size and range of investing on the technology side?
11. We’ve seen tech investor 
12. How will your day to day change?
13. What types of questions do you ask yourself?
14. Do you think it’s different from what it takes to grow a technology business vs a consumer business?
15. Do you think a technology business can be started from anywhere?
16. Purpose built for one vertical
17. Mirror ecommerce with online
18. Inventory management systems
19. Innovation within consumer journeys and data

1. Is there synergy with VMG growth and VMG Catalyst?
2. How is it different from VMG growth?
3. How do you think about returns and portfolio expectation from VMG Growth to VMG Catalyst?
4. How do you balance the number of investments in commerce infrastructure plays like Shogun and Swell with ecommerce / consumer facing brands selling physical goods?
5. How do you analyze founders? When do you feel is the right time to get involved in a company?
6. Recently closed $400 million. How are you thinking about capital deployment in this market?
7. Online grocery is really tough to nail. What stuck out when you made the investment in Wee!!!?
8. How are you thinking about these macro economic times? I’ve heard it’s become very tricky pricing growth rounds.
9. How do you analyze consumer pain points that could develop into big opportunities?
10. What would you like to see changed when it comes to products within ecommerce infrastructure?
11. What’s one thing he would change about venture capital?
12. What’s one book that inspired him personally? What’s one book that inspired him professionally?
13. Shoedog
14. Unbroken
15. What’s one piece of advice?

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