Finance Operators Ep 9: Building Brands & Making Bets: Inside the World of Consumer VC and Growth Equity
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May 12, 2025 Mehtab and Drew dive into the world of growth equity, discussing the delicate balance of investment strategies and the challenges of raising venture capital. They explore the pitfalls of bootstrapping versus seeking outside funding. The conversation highlights the critical impact of brand value and the protective role of intellectual property. Along the way, they tackle the disruptive effect of knockoff products on brand integrity and share innovative solutions to enhance profitability in the ever-volatile consumer market.
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Discipline in Growth Equity Investing
- Growth equity deals require a solid exit plan to underwrite investments prudently.
- The venture market has shifted; deals viable in 2020-21 may no longer be attractive due to risk and exit challenges.
Raise Venture with Capital Use Case
- Raise venture capital only if you have a clear use case for capital deployment.
- Avoid raising funds without a strong product or competitive edge that justifies the investment.
Haya's Successful Capital-Light Exit
- The brand Haya sold for over $200 million with a unique product design.
- They raised little capital before their successful exit, showing an alternative success path.