I have invested in over a dozen consumer businesses either directly, through SPVs, or through funds I’ve invested in.

However, the unit economics in consumer businesses don’t scale in the same way as in traditional tech, so that “grow at all costs” ideology is considerably less well suited for consumer-focused companies.

However, many consumer businesses are simply not meant to be billion-dollar businesses.

Here are a few of the things that the next generation of consumer investors must embrace:1.

Rein in valuation expectationsWhen consumer businesses that are tech-enabled but not tech-centric start raising mid to late stage rounds at four or five times revenue, something is amiss. | To read full story, visit https://startuparound.com/read/1582410606.828792/4-ways-VCs-need-to-change-their-approach-to-consumer-companies?ref=audio_experience