On February 5 this year I wrote about narrowing my focus to consumer investing. Within consumer, I focus on marketplaces (e.g. GetYourGuide), new platforms (e.g. Dubsmash), and direct-to-consumer (DTC) brands (e.g. Lillydoo).
Since that time, we've worked internally on sharpening that investment thesis, paying special attention to what kind of consumer propositions we want to back. I hope to share some of that work in the coming weeks. We have led one large investment in a digitally native vertical brand (DNVB), are in the process of closing another, and just yesterday made a third commitment. The latter two are both seed (€250K-€1M).
Technology's ascendance over the last decade has left everyone I know distracted. There's so much going on, so many things and people vying for your attention in different ways, that it's hard to gauge what's important. And the temptation in venture is to stay horizontal. After all, I used to say, if I wanted to be focused on a vertical I'd be a founder.
I also used to believe that since we're mostly picking founders/teams, ideas were secondary. That's probably wrong - ideas are pretty crucial. And I do think a deep understanding of the idea/market makes me a much better partner.
But the other thing that makes me a better partner, and one that I underestimated, is being able to say "sorry, that's not what I'm focused on" to most things that come across my desk. All the while being able to spend real time on the things that I am focused on. There's a lot of beauty in reducing the noise.
So the benefits of focus are immense, and getting bigger. I'm about to invest in my first ever company that reached out cold to me. No network introduction, no warm lead. Just an email. That's a direct result of the blogging about DTC investing that I've been doing. So I'll try and keep doing that every day (in true OKR fashion, 70% complete is a win!).