The EIS Navigator 86 Investing in consumer companies and finding out what consumers really want with Phoebe Scriven of VGC Partners
Amongst EIS funds and VCTs, consumer companies is less popular than B2B investments but still have their attractions. VGC Partners is one of the few managers that focus on this area and we get Investment Director, Phoebe Scriven to discuss it.
In a fascinating discussion we cover many topics:
- why consumer is still attractive despite the economy
- how the dynamics of returns in consumer venture capital investments is different from B2B
- how to understand the consumer when its not something that you would buy yourself
- getting conviction when data is limited
- developing investment theses
- finding quality within a group of companies within the same space
- how creative companies can find a formula for repeat success
Phoebe brings lots of real life examples and really brings out her thought processes and approach to making investments.
01:00 how Phoebe became involved in venture capital
02:40 what VGC does
04:45 why is consumer attractive now
07:00 consumer brands don't scale as quickly - don't need unicorns to get good returns
13:00 B2C vs B2B investing -
14:00 understanding the consumer if you aren't the consumer
19:00 how to get insights into consumers - qualitative insights
23:15 quantitative insights
26:45 thinness of data and using opinions: testing beliefs and getting conviction
32:45 looking for differentiation when you see a lot of similar companies
36:45 example of circular economy companies
41:30 other areas of current interest - VR gaming,
46:45 creating formulas for repeated creative success
49:50 favourite questions
Links
VGC website - https://vgc.partners/
Phoebe's email - phobe@vgc.com
LinkedIn - https://www.linkedin.com/in/phoebescriven/
Subscribe to the EIS Navigator podcast on most services here: https://the-eis-navigator.captivate.fm/listen
Suggested books
Creativity Inc by Ed Catmull
Culture Code by Daniel Coyle
Bio
Phoebe Scriven
Investment Director, VGC Partners
Phoebe leads early-stage EIS investing at VGC Partners.
After reading English at Oxford, Phoebe began her career in product innovation and strategy, working with major FMCG companies and travelling across the globe to better understand different consumers. From there, she moved into consulting and development finance, while (outside of her day job) getting increasingly involved with the London start-up ecosystem via DevelopHer, a non-profit organsiation. In 2019, Phoebe made the move into venture capital, joining Supernode Global, where she made her first investments and exit. Phoebe joined VGC Partners at the beginning of 2023.