1/ Everyone in consumer is trying to figure out how to play emerging CPG (<$15m in revenue). EVERYONE. Every public CPG company, every retailer, every consumer VC and PE firm, every meaningful public investor. EVERYONE.— Ryan Caldbeck (@ryan_caldbeck) March 14, 2018
Here is why.
Lower barriers to entry in supply chain (globalization) + zero barrier to entry in retail (direct ecommerce) + variable marketing costs (internet) = a Cambrian explosion of brands.
This is a big big deal, because the markets are huge (trillions) and the old brands are tired. Low R&D for years + stuck in industrialization mass media consumer advertising retail intermediated mindset = easy to disrupt.
We're currently thinking hard at Sunstone about setting up a program to make it easier for would be DTC founders to get started. A mini-YC or EF, we'd give you €100K to figure out whether what you want to do is viable and put together a team. Then another €500K cheque to test product-market fit. We could do ~10-20 of these deals a year.
UPDATE: Since this post, we have started making seed (€100K-€500K) and Series A (€1-5€M) investments in direct-to-consumer brands all across Europe. If you're running this type of company, we'd love to hear from you.
There are two easy ways of getting in touch:
- or you can email me at firstname.lastname@example.org (this is a bit slower because I get a lot of email)