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

My guest today is Tyler Morgan, Vice President at BFG Partners. BFG Partners invests in entrepreneurs that build exceptional businesses in the better-for-you food, beverage, and consumer products space. Some of their investments include Olipop, Quinn Snacks, and Bear Naked. I really enjoyed my time with Tyler where we discuss his due diligence process, effects of COVID within CPG and the evolution of BFG. Without further ado, here's Tyler.The Consumer VC Summit: February 23-25Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offA couple of books that inspired Tyler:Ship of Gold in the Deep Blue Sea by Gary KinderEndurance: Shackleton's Incredible Voyage by Alfred LansingSome of the questions I ask Tyler -What was your initial attraction to consumer products?Wellness in hospitalsWhat was your interest when it came to investing and venture capital?Tell me a bit about BFG it seems like you did a rebrand. What are your focus areas?Why did you expand to invest in other consumables?What are some current trends that you're most interested in? Food as medicineThere are so many brands out there since it's never been easier to start a brand then at any other point in time. What's your evaluation process to judge if a brand might be able to cut through the noise?Walk me through your due diligence process?What makes a compelling brand?What's one thing you would change about Venture capital?Do you only invest in brands that have an online presence?in store demoingWhat's one thing that you would change about venture capital?Do you only invest in companies that are DNVBs or do invest in companies that are already in retail?What's one book that inspired you personally and one book that inspired you professionally?What's the best piece that you've received?What's one piece of advice to founders?

Thank you Sunny Dhillon for the introduction to today's guest, Deborah Benton. Deb is the founder and general partner of Willow Growth Partners. Willow provides early growth capital to entrepreneurs building the next generation of transformative consumer brands and the disruptive technologies that power them. Prior to launching her fund, Deborah held many senior operational positions in companies like Nasty Gal, Shoe Dazzle and eToys. We discuss what investors don't get about investing in consumer brands, lessons learned working for established and aspiring brands and her approach to trends.The Consumer VC Summit: February 23-25Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offA couple books that inspired Deborah -Man's Search For Meaning by Viktor E. FranklThe Alchemist by Paulo CoelhoSome of the questions I ask Deb:I'd love to first start with your career. What was your initial attraction to work in retail and consumer products?You've witnessed companies raise lots of money and have lots of momentum and then not be able to become profitable or reach their goals and end up falling apart. What were some of the learnings from these experiences?What attracted you to the world of investing and how did you make decisions as an angel investor?When it comes to consumer products in 2020 where you no longer can scale efficiently like you could of 10 years ago, what is the key?You're currently closing your first fund, what attracted you to shift to become a VC from being an angel investor?What are current retail trends that you are focused on?We've seen large corporations finally wake up to ecommerce during COVID. Do you think, even though ecommerce penetration has increased substantially this year, it's more competitive than it was pre-COVID?What's one thing that you would change when it comes to venture capital?What's the best piece of advice that you've received?

My guest today is Brendan Rogers, one of the co-founders of Wag! and 2 a.m. Wag! is #1 app for pet parents and the leading on-demand dog walking platform. 2 a.m is a venture fund, investing in the next generation of entrepreneurs in India. We discuss the insight that led to the founding of Wag!, how they approached scale, and the opportunity he saw in India as an investor.The Consumer VC Summit: February 23-25Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offA couple books that inspired Brendan:Rudy: My Story by Rudy RuettigerThe Start-up of You by Reid HoffmanSome of the questions I asked Brendan:What was your attraction to technology and consumer technology?Wag! -What was the insight that led you to found Wag!?Which side of the marketplace did you have to initially focus on to get the wheel in motion - demand or supply?What were some of the creative strategies that you employed in order for Wag! to become a successful marketplace?How did you approach expanding to different markets?What was the fundraising strategy?After you left Wag!, how did you think about what you next want to do?2AM & India -Why the interest in India? Why not focus on companies in the United States?How did 2AM come together?What are some of the differences you've had to experience when investing in Indian companies vs. U.S?What are some of the differences in population that an entrepreneur has to take into account that they wouldn't have to in the United States?What are some consumer trends in India that you're most excited about?What's one thing that you would change about venture capital?What's the best piece of advice that you've received?What's one piece of advice to founders?

Thank you Sita for the intro to our guest today, Amanda Groves, one of the partners at PLUS Capital. PLUS Capital is an advisement and venture fund trusted by elite artists and athletes to invest in and build transformative companies. We talk about how to think about analyzing true value from celebrities to brands, what a successful partnership could like it and the most surprising partnership on paper she's come across.The Consumer VC Summit: February 23-25Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offA couple books that inspired Amanda:Greenlights by Matthew McConaugheyBig Lies by Seth Stephens-DavidowitzHere are some of the questions I ask Amanda -What was your attraction to finance and technology?What led you to joining PLUS Capital?Talk to me about the ways you engage with celebrities?Talk to me about how you manage the fund vs. advisory practice. How do you think about making investments and manage LPs, that are family offices as well as celebrities?When a celebrity does decide to make a check and participate, are their certain activities or clauses the celebrity has to do in order to own up to receiving a larger stake in the company then what the check size is?Are there specific categories or types of companies that your celebrity clients tend to find interesting?Has there been any surprises when it comes to a partnership between a celebrity and company? i.e. company was very different to perceived interests from celebrity?We've seen more and more celebrities become founders and start their own businesses rather then just becoming endorsers. Does this affect your advisory position?How do you think about authenticity when a celebrity and a company collaborate?What's your due diligence process when find attractive opportunities?What are some current trends that you are focused on?What's one thing you would change about venture capital?What's one book that inspired you personally and one book that inspired you professionally?What's one piece of advice that you have for founders?

Thank you Samara Hernandez to our guest today, Beatriz Acevedo, CEO and co-founder of SUMA Wealth. SUMA is a revolutionary financial wellness company with the mission to engage, educate, and empower the Latinx community via a holistic approach of Digital Media, Experiences, and FinTech. Previously, Beatriz founded mitu, a digital media company that elevates and celebrates the voices of our multidimensional LatinX community. We discuss her approach to founding a fintech company, examples of creative ways she uses content to build community and why she wanted to focus on personal finance. Without further ado, here's Samara.The Consumer VC Summit: February 23-25Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offA couple books that inspired Beatriz are The Four Agreements by Don Miguel Ruiz and Lean In by Sheryl Sandberg.Highly recommend following her on Twitter @Bea_latina. You can also follow me on Twitter for updates @mikegelb.Some of the questions I ask BeatrizWhat was your attraction to entrepreneurship and media?How did you go on to found mitú?What are some of hurdles when founding a media business?What led you to founding your latest venture, SUMA Wealth?What was the opportunity and how did you become so passionate in helping folks learn about personal finance?Walk me through the business model.We've seen other fintech products focus on the product first, then content. You've seem to take the other approach, starting with the content. How did you think about go-to-market strategy?When you think about target market - Gen Z and Millennial latinx - what are some of the tactics that you use to find that audience and create brand presence?What was your approach when you decided to raise venture capital?What's one thing you would change about the fundraising process?What's the best piece of advice that you've received?What's one piece of advice for founders?

Thank you Samara Hernandez for introducing me to our guest today, Rick Desai, one of the Partners at Listen. Listen is a consumer venture capital fund that backs and builds the brand of tomorrow. Some of their investments include Calm, Factor and Public Goods. Rick is also the founder of Dashfire, which invests in early stage entrepreneurs and provides near-term technical extension and long-term strategic guidance. We talk about opportunities he's seeing both in consumer products and consumer technology, how he thinks about growth vs profitability and investing in founders in secondary markets.You can follow Rick on Twitter @RickDesai.The Consumer VC Summit: February 23-25Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offHere are some of the questions I ask Rick -What was your attraction to finance and consumer?I'd love to hear the origin story of Listen?At the beginning of Listen, when it came to growing brands online, you had arbitrage opportunities in growth. Now, the landscape has changed. How do you define and build a compelling brand now?We've seen investors shift away from investing in consumer brands. How do you think about opportunities?Walk me through your due diligence processHas COVID disrupted that process?Seems like we went through a long phase of grow at all costs, now we've shifted the focus to to profitability. When do you feel it makes sense to shift the focus from growth to profitability?What trends are you currently focused on?What's one thing that you would change when it came to venture capital?What's one book that inspired you personally and one book that inspired you professionally?What's the best piece of advice you've ever received?What's one piece of advice for founders?

In this engaging conversation, Steven Wolfe Pereira, co-founder and CEO of Encantos, shares his journey in edtech, emphasizing that kids learn best through play. He explores innovative strategies merging education and entertainment, and discusses the importance of diverse storytelling. Steven highlights his company's commitment to social responsibility, creating brands that empower children with essential skills. He also encourages aspiring entrepreneurs to take action and experiment, proving that impactful ventures can yield both financial success and social good.

My guest today is Jeff Housenbold, Managing Partner of Softbank's Vision Fund, the world's largest technology-focused venture capital fund, with over $100 billion in capital.Some of Jeff's investments are DoorDash, Compass, OpenDoor, and Whoop. Previously, Jeff was the CEO of Shutterfly. We discuss how he approaches investment themes, how he identifies opportunities on the value chain, and markets that are ripe for disruption. Without further ado, here's Jeff.Also, check out The Consumer VC Summit: February 23-25 about Ecommerce, Retail and Innovation.Full Lineup and to purchase tickets:Summit.theconsumervc.comEnter CONSUMERVC at checkout for 20% offOne book that inspired Jeff:The Fountainhead by Ayr RandI highly recommend following him on Twitter @jtbold.Here are the questions I ask Jeff -So in your career it seems like you've done it all as it relates to business. What led you to joining Softbank and be part of the vision fund?You're part of something that no one else has done - an $100 billion venture capital fund. Now, every fund has their ups and downs across the portfolio, but your fund has far greater AUM than any other fund in the ecosystem. How do you approach risk and portfolio construction?How do you think about returns? Since it's that large a fund, are you still expecting venture capital type returns or returns more similar to growth stage private equity?What's your process of deploying capital? What's your average check size?What criteria do you look for in companies?I imagine since you are writing large checks, you might have a more intensive due diligence process. If you could walk me through it.After you invest, how do you think about growth execution?I know you are a thematic investor and you extensive reports about large industries. How do you go about deciding what industry to focus on and your process creating the reports?An area that I know you focus on is real estate technology. What are current trends that you are focused on in the space and has COVID changed your perception of that industry?SPACs have become very popular in the past couple of years and I know Opendoor is going public via Chamath's SPAC. On this show, we've talked about the impact of SPACs when it comes to CPG and food and beverage brands and the impact of those types of businesses, but haven't spoken about SPACs impact on tech businesses. Would love to hear your thoughts on SPACs.You've been around the dot com boom and bust, the 2008 crash and now this pandemic. Seems for the past ten years or so when the economy was growing, companies optimized for growth, not profitability. Now the tune has changed and seems to have been changing in the past couple of years. How do you think about unit economics, sustainable, and optimizing for growth vs. profitability?What's one thing that you would change regarding venture capital?What's your most recent investment and what makes you excited about it?What's one company that's on your anti-portfolio and why did you pass?What's the best advice that you've ever received?What's one piece of advice that you have for founders?

Thank you Joe Tonnos for the introduction to today's guest, Michael Nogen, one of the founding partners of Overton VC. Overton Venture Capital invests in early stage companies (Pre Series A) who demonstrate early success through revenue and market validation. Some of their portfolio includes Perch, Stantt and Joy Lux. Previously, he founded Theality, which became a national maternity apparel manufacturer and distributor carried by over 200 retailers and led global strategy at Gap and headed finance and strategy at 1800Flowers.com.A few books that inspired Michael:Good to Great by Jim CollinsThe Culting of Brands by Douglas AtkinNo Rules Rules by Reid HastingsQuestions I ask Michael:What was your initial attraction to entrepreneurship, and founding Theality?You then went into consulting and then working in senior positions at Gap and 1800 Flowers. What were some of the learnings working at legacy brands?How did Overton come together?During the summit, one of the focuses was why have corporations at times struggle to innovate, which lead to acquiring challenging brands. I'd love to hear your thoughts on this since you worked for established corporate brands, but also was a successful founder.Walk me through your due diligence process -When you evaluate early stage businesses, what are some of the most important elements of either the founder or the business to get you interested?Has it been hard establishing conviction amongst founders since you have to meet with them remotely during COVID?What I find really interesting about your portfolio at Overton is you invest in both software / b2b2c businesses as well as consumer brands. Many software investors have felt consumer brands aren't venture backable. I was curious since you invest in a wide range of businesses and business models, how you think about porfolio construction and the return profile on each business?What are current trends that you are focused on?Has COVID changed your point of view on any specific trends?What's one thing that you would change when it came to venture capital?

My guests today are Franklin Isacson & Andrew Goletka, Founders and Managing Partners of Coefficient Capital. Coefficient partners with entrepreneurs to build brands, tell stories and engage consumers across the digital and physical worlds, typically at the series A. Some of their investments include Magic Spoon, Hawthorne, Haus and Hydrant. We discuss how they think about omnichannel, insights learned from their consumer trends report that was produced in partnership with The New Consumer, and criteria at Series A.Some of the questions I ask Andrew and Franklin:What was both your attraction to consumer?What's interesting about both your stories is that you came from the consumer world from opposite angles - Andrew from the ecommerce side, Franklin from the retail side. From each of these positions, what is most overlooked when evaluating an ecommerce brand vs. a retail brand?What are some of the differences when analyzing a successful DNVB vs. a brand that has done really well in traditional retail?When DNVBs reach scale and have to expand to retail, what do you find is the most challenging part of that expansion process?When you have a brand that is successful in retail, do they need to have an ecommerce strategy?When does an ecommerce strategy not make sense?When it comes growth marketing, you no longer have the arbitrage opportunities that you had in the late 00s and early 10s. What are some creative strategies that you've seen disruptive brands execute in order to get above the noise?What is a reason why a DNVB might not be able to work in retail?Have you seen online brands having to rebrand themselves in order to position themselves differently when it comes to retail?Walk me through your due diligence process.Has it been harder to establish conviction amongst founders when meeting with them remotely?What's one thing each of you would change as it pertains to venture capital?What's one book that inspired each of you personally and professionally?What's the best piece of advice that you've ever received?What's your most recent investment and what makes you excited about it?What's one piece of advice that you have for founders building brands?