Consumer VC: Venture Capital I B2C Startups I Commerce | Early-Stage Investing I Brands

Are You Building for the Right Reasons — or Just Because the Category Is Hot? Should there be a Better Business Bureau for VCs? w/ Sid Banthiya

Apr 22, 2025

Ask episode

Chapters

Transcript

Episode notes

#venturecapital #consumervc

Join host Mike Gelb on The Consumer VC as he talks with Sid Banthiya — investor, advisor, and former CSO at Milk Bar. In this episode, Sid dives deep into consumer startup dynamics, term sheet red flags, and how founders can scale smarter (not louder).

Learn why many startups fall into the trap of "venture validation," when bootstrapping is better, and how to navigate hot markets without losing your edge. Sid also reveals why understanding liquidation preferences is critical for founders and shares trends in CPG, e-commerce, and supplements.

This episode is brought to you by Highbeam.

Highbeam is the all-in-one banking and cash management platform built for consumer brands. Apply Here for Flexible Capital

Whether you're raising capital, launching a product, or scaling a DTC brand, this is a masterclass on thoughtful company-building and founder alignment.

👇 Timestamps

00:00 Intro & Podcast Overview

00:47 Why Sid Wrote “Avoiding the Road to Mediocrity” 03:12 The Venture Trap: Chasing Capital vs. Solving Problems 06:00 Is VC the Right Path for Every Founder?

08:31 Fundraising Focus vs. Revenue Focus

10:00 The Rise of Too Much Capital in VC

13:10 Can Founders Course-Correct Their Mission?

16:00 Case Study: Hungryroot’s Strategic Pivot

18:25 How to Decide if You Should Start a Company

20:00 Bootstrap vs. Venture: When and Why

22:50 Go Slow or Scale Fast? What Founders Should Know 26:00 Investing in Hot Markets: Supplements, Protein & More

29:00 Valuation vs. Exit Reality: Why Price Discipline Matters 32:00 Waterfalls, Liquidation Preferences & Founder Equity 37:00 The Case for a “Better Business Bureau” for Investors 41:00 What Makes a VC Truly Valuable