I joined Sunstone five years ago this coming April. Half of the investments I’ve made are companies selling to consumers; the other, to businesses.
For a long time I resisted narrowing my investment focus. The whole point of being a VC instead of a founder, I argued, was to retain the optionality of being able to do both.
No longer. From 2018 onwards I’ll focus on consumer investments. It’s a combination of the market having grown to the point of where I can’t cover it all. But also that I don’t enjoy (and am not world-class at) selling to the enterprise.
Consumer, for me, includes eg personal productivity software bought with a credit card. But it excludes all enterprise software, like databases or cybersecurity. It includes B2B2C-type marketplaces, which aggregate merchants selling to consumers. But it excludes eg all adtech that only touches the consumer for data.
My favorite consumer investments are marketplaces/platforms/networks and DTC brands. I love travel. I’m spending a lot of time on crypto. And I think social is far from done.
I realize all this is a bit contrarian. Most VCs I know have pivoted to enterprise. Many are focusing on “deep tech.”
I’ll continue screening these types of investments for my partners at Sunstone and am always happy to intro them. But as for me, I’m 100% consumer now.