Consumer VC

This episode is part of a live recording Office Hour / AMA with David Goldberg.

David Goldberg is a General Partner at Corigin Ventures. Corigin Ventures is a New York based venture capital firm leading seed stage investments in the founders defining the future of daily living. Some of their investments include Perch Interactive, The Inside, Classpass and Imperfect Foods. If you enjoy this episode, check out David's proper podcast episode #35.

You can follow David on Twitter @davidrgoldberg. If you are a founder and working on something innovative, have a question you’d like to hear VCs or founders answer on the show you can DM him and follow me on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

This episode is brought to you by Crunchfirm : a full-stack finance, accounting & CFO advisory partner focused exclusively on VC backed startups. Listeners get the first month free of their services, by emailing [email protected]. Listeners get the first month free.

I'd like to thank Adelle Archer for introducing me to today's guest, Jiake Lu, CEO of Outer. Outer is an extraordinary company that is reengineering outdoor furniture. Business Insider named them the #1 fastest growing DTC brands. I chat with Jiake about how he went from founding a B2B business to B2C, his really unique showroom strategy.

And there you have it, lots of fun chatting with Jiake about outdoor furniture. Feel free to follow him on Twitter @jiakeliu. You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

One book that inspired Jiake is Sapiens by Yuval Noah Harari.

Here's what we cover -

1. His attraction to entrepreneurship and software. Learnings from starting ProspectWise and why he started Outer. How did he realize the insight that folks weren't using their outdoor furniture? What was his product innovation? How did he turn this into a brand rather than being a wholesaler?
2. His unique distribution strategy and how he thought about show rooms? His launch strategy when they premiered May 2019? The competitive landscape in outdoor furniture?
3. His initial growth strategy? Why did he you need to fundraise? The hardest part about fundraising or element of his business that it was hardest for investors to understand? Some of the effects of COVID on his business?
4. What's one thing that he would change when it came to fundraising? One piece of advice for DNVB companies?

This episode is brought to you by Crunchfirm : a full-stack finance, accounting & CFO advisory partner focused exclusively on VC backed startups. Listeners get the first month free of their services, by emailing [email protected].

Our guest today is Dan Gluck, Managing Partner of Powerplant Ventures a growth equity fund investing in emerging consumer food, beverage, and foodservice companies leading disruptive plant-centric brands. Some of their investments include Beyond Meat, Thrive Market, and Veggie Grill. Previously, Dan co-founded Health Warrior, which was acquired by PepsiCo in 2018. This was fantastic conversation and Dan discusses what attracted him to investing at young age, his insight that led him to founding Health Warrior and why he is so focused on better for you and plant based foods.

One book that inspired Dan is The Choice: Embrace The Possible by Dr. Edith Eva Eger.

You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

Some of the questions I ask Dan -

1. What attracted you to finance and investing in health and wellness products?
2. Tell me the insight that you had with Chia seed bars and how that led to Health Warrior?
3. Take me behind your decision making process when you were thinking about taking the jump into entrepreneurship?
4. After the sale to Pepsi (which congratulations), did you have the urge to start another company?
5. How did Powerplant Ventures come together?
6. I understand that your thesis focuses around plant-based products. It seems like you invest in quite a variety of types of businesses around that theme - restaurants, B2B catering, food and beverage products. How do you think about portfolio construction and making sure you have a balance?
7. In the food and beverage spaces, how do you think about growth, profitability and what does a successful outcome look like?
8. What are some trends in food that you are excited about?
9. You've had a-lot of experience as a board member. What makes a good board member?
10. I believe your our first growth investor on the show. Talk to me a bit about your due diligence process?
11. What are some qualities that you like to see in founders?
12. COVID has been top of mind for everybody.
13. How has it effected you and your portfolio?
14. Has it been tough meeting with founders remotely rather than in person?
15. What's one thing you would change about venture capital?
16. What's one book that inspired you personally and one book that inspired you professionally?
17. What's your most recent investment and what makes you excited about it?
18. What's one company that you had the opportunity to invest in, didn't and in retrospect wish you did?
19. What's one piece of advice that you have for founders?

Our guest today is Alex Levitt, one of the heads of Yellow. Yellow is Snap Inc.'s ecosystem to serve companies at the intersection of creativity and technology with its Accelerator Program, Collabs Program, and Community Programming.

Yellow is currently accepting applications through Sunday, August 23rd for its inaugural Collabs Program. If you're interested in integrating your product into the Snap Platform through Snap Minis, Snap Kit Dynamic Lenses, Scan, SnapML or more, visit YellowLA.com to apply and learn more.

You can follow Alex on Twitter @alexmlevitt. You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

A couple books that inspired Alex are Educated by Tara Westover and Creativity, Inc. by Ed Catmull.

Here are a few questions I asked Alex -

1. What attracted you to media and technology in the first place?
2. So you worked at WME, rising to digital. What was your focus in the digital department?
3. Talk to me about Snap’s accelerator.
4. What made you excited about joining?
5. What verticals do you focus on?
6. How involved is Snap?
7. How do you think about where you stand in the overall market of accelerators?
8. Walk me through your due diligence process.
9. Launching Product on Platform
10. How should a founder decide whether an accelerator or raising their own round is the appropriate choice?
11. When it comes to business models, advertising business models are a bit out of favor, social has traditionally been tied to advertising
12. How do you think about the early stage venture capital ecosystem?
13. What trends are you currently focused on and makes you excited?
14. How has running an accelerator changed during COVID?
15. What’s one thing you would change about Venture Capital?
16. What’s one piece of advice that you have for founders that are currently fundraising?

Thank you Will McClelland for the introduction to today's guests Betsy Fore and Sofia Laurell, the co-founders and co-CEOs of Tiny Organics. Tiny Organics delivers organic, fresh, nutrient-rich baby and toddler meals created by their Infant Nutritionist. Their goal is to help every parent feed their baby and toddler the healthiest food. Previously, Betsy worked and created product lines for Mattel, Hasbro and MindCandy (Moshi Monsters). She was also the Founder and CEO of Wondermento, creators of the WonderWoof BowTie dog activity monitor. Sofia is a marketing and PR veteran, most recently at Ascend Foundation helping elevate women and minorities onto U.S. corporate boards and built the brand into a powerhouse.

A couple books that inspired Sofia are The Hard Things About Hard Things by Ben Horowitz and Sapiens by Yuval Noah Harari. One book that inspired Betsy is Shoedog by Phil Knight.

You can follow Betsy on Instagram @betsyfore and Sofia @sofialaurell. You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

Some of the questions I ask Betsy and Sofia -

1. What attracted each of you to entrepreneurship and consumer products?
2. How did Tiny Organics come together?
3. What is the problem that you are trying to solve? Betsy
4. You are both Co-CEOs. Talk to me about your decision making process?
5. The classic line when there are two co-founders is “complementary skills”. When I was talking with Jessica and Rod from Lovevery, we discussed how yes that is important, but also they are so collaborative on lots of the decision makings and not to restrict each other in a box. There are no right or wrong ways to build a company, but wanted to know how you think about your working relationship? Is it more siloed when it comes to decision making or is it more collaborative?
6. How did you go about sourcing the food and your supply chain? It didn’t seem like you both came from a food and bev background (I could certainly be wrong here!), was that difficult to know where to begin?
7. One of the trends that we’ve talked about on the show in consumer is curation. Now since there is so much information and choice out there, curation has become difficult. Tiny Organics seem to address that with these personalized menus and creating a plan for the child. Does that though make your supply chain more complicated?
8. How did you think about the price point at the very beginning and the competitive landscape?
9. Why did you decide to fundraise?
10. What was your strategy when you approached fundraising?
11. Did you already have a network?
12. What was the toughest obstacle for investors to wrap their heads around when it came to your business?
13. How do you think about growth vs. profitability? Betsy
14. What has been the hardest part when starting Tiny Organics? - Sofia
15. What’s one thing you would change when it came to fundraising? - Sofia
16. What’s one piece of advice that you have for founders that are starting a CPG company?

Thank you Joe Tonnos for the introduction to today's guest, Mitch Hayes, founder and CEO of Los Sundays Tequila. Los Sundays is the tequila for the millennial and founded on the principles of Quality, Originality and Style.

One book that inspired Mitch personally is The Alchemist by Paulo Coelho . One book that inspired him professionally is Damn Good Advice by George Lois.

You can follow Los Sundays on Instagram @los_sundays. You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

Some of the questions I ask Mitch -

1. Talk to me about your attraction to entrepreneurship and what led you to founding Los Sundays?
2. What was your approach when it came to taste testings?
3. How did you decide on your first type of Tequila and how do you think about product mix?
4. Your approach from the beginning was thinking about demand first rather than supply and being able to capture demand.
5. How were able to generate demand?
6. What was your launch strategy?
7. Is there pay to play when it comes to drinks in bars and recommendations from bartenders?
8. How did you approach your supply chain from the very beginning?
9. How did you think about your brand positioning?
10. How did you think about growth, offline and online?
11. Why did you choose to fundraise?
12. What was your fundraising strategy?
13. What has been some of the effects of COVID on your business?
14. What's one piece of advice for founders that are planning on starting a food and bev type business?

Our guest today is Sasha Astafyeva, Partner at Atomico. Atomico invests in Europe’s most ambitious tech founders at Series A and beyond. Some of their investments include Farmdrop, Habito, and teatime games. Sasha leads new investments in consumer. Previously, she was a Principal at Felix Capital and VP of Finance and Business Intelligence at VivaReal.

A couple of books that inspired Sasha personally and professionally are The Cost of Living by Deborah Levy and Why Be Happy When You Could Be Normal? by Jeanette Winterson.

You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

Some of the questions that I ask Sasha are -

1. What initially attracted you to venture capital?
2. Talk to me about the European landscape when it comes to the startup ecosystem, what makes you excited about it?
3. What's your definition of Series A? How do you think about that stage?
4. What are milestones that a startup has to achieve in order to raise a Series A?
5. What are some qualities you like to see in founders?
6. Since the United States is such a big market, you can create a massive business in the United States alone. I imagine it must be harder to scale in Europe since you're dealing with many countries.
7. What are some consumer trends that you are excited about?
8. Has COVID changed some of your thesis' around certain trends?
9. Has it been harder establishing conviction amongst founders since you have to meet with them remotely?
10. I recently had on Ezra Galston, who runs Starting Line, a VC fund out of Chicago. He mentioned that deals are getting done really quickly, almost at pre-COVID pace. Is this the same in Europe?
11. What's one thing that you would change about venture capital?
12. What's one company you had an opportunity to invest in, didn't and in retrospect wish you did?
13. What's your most recent investment and what makes you excited about it?
14. What's one book that inspired you personally and one book that inspired you professionally?
15. What's one piece of advice that you have for B2C founders?

Our guest today is Nick Mindel, Partner at Amberstone. Amberstone invests at the early stages in entrepreneurs building breakthrough consumer companies. Some of their investments include Daily Harvest, Juneshine, Bev and Honey Mama's. Previously, Nick worked at Piper Sandler and a co-founder of Trail Post Ventures. Thank you Justin Gordon for the introduction!

A book that he recommends that inspired him personally is A River Runs Through It by Norman Maclean. A book that inspired him professionally is Principles by Ray Dalio. A series that he's thoroughly enjoyed is The Red Rising Series by Pierce Brown.

You can also follow your host, Mike, on Twitter @mikegelb. You can also follow for episode announcements @consumervc.

Some of the questions that I asked Nick -

1. Tell me your origin story, I know your family was involved in the food and beverage industry, but what initially attracted you to finance and consumer?
2. How did Trail Post Ventures come together?
3. I can imagine building out a track record is hard, and even with a track record that doesn't mean you can fundraise. For folks that are looking to raise their own funds, what would you advise?
4. Talk to me about the transition to Amberstone come together?
5. What's Amberstone's thesis?
6. What are some qualities in founders that you like to see?
7. When you are evaluating opportunities, how do you think about optimizing profitability vs. growth and gross margin?
8. How do you think about the differences between a trend and a fad?
9. How do you think about habits? Since we're living in COVID, it seems like people have become more comfortable buying physical goods online as it's become the only way to. How are you thinking about ecommerce when things go (roughly) back to normal - stores reopen?
10. What are consumer trends that you are most excited about?
11. Is it harder to find conviction among founders since you are meeting with them remotely?
12. I've had on Will McClelland, whose the MP at Elizabeth Street Ventures and he believes that if you want to build a consumer company or focus on consumer, New York is the place to do that, not San Francisco. What are your thoughts around some of the differences between NY and SF?
13. Do you take a look at founders that are located in secondary and tertiary markets? If so, what's some advice for them that are building venture backable businesses but aren't in a big venture ecosystem?
14. What's one thing that you would change when it came to venture capital?
15. What's your most recent investment and what makes you excited about it?
16. What's one piece of advice for founders building consumer businesses?

Our guest today is Ezra Galston, Founding partner of Starting Line, a seed stage consumer tech focused fund based in Chicago. Previously he was a Principal at Chicago Ventures. Some of his investments include Cameo, Flyhomes, and Spothero.

One book that inspired Ezra personally is The Little Prince by Antoine de Saint-Exupéry. One book that inspired him professionally is Essentialism: The Disciplined Pursuit of Less by Greg McKeown.

I highly recommend following Ezra on Twitter @EzraMoGee. You can also follow your host @mikegelb.

Some of the questions I ask Ezra -

1. What initially attracted you to venture capital and how did Starting Line come about?
2. What makes Chicago special as a startup ecosystem?
3. I've had on investors that say if you start a company outside the coasts or the main venture ecosystems, that's ok, but there needs to be a plan to move to the main venture ecosystem because of recruiting and hiring. I've other investors that love investing in secondary markets (it's weird to consider Chicago a secondary market) or not obvious markets. How do you think about this?
4. Talk to me a little bit about your due diligence process and your stage?
5. What are some of the differences between managed and lightly managed marketplaces?
6. For entrepreneurs that are thinking about starting marketplace, what are some things they should consider when approaching marketplace design that would influence whether they should have a managed vs. un-managed marketplace?
7. Now, decision making on the internet in some ways is hard because there is so much choice. How do you think about curation?
8. I'd love to learn a little bit about consumer technology that you are focused on that are for the 99%
9. What opportunities in consumer tech are you focused on and gets you excited?
10. What is one thing that you would change when it came to venture capital?
11. What's one book that inspired you personally and one book that inspired you professionally?
12. What's your most recent investment and what makes you excited about it?
13. What's one company on your anti-portfolio and did you learn anything from passing?
14. What's one piece advice that you have for consumer tech founders?

Thank you Jordan Nof for introducing me to today's guest Coulter Lewis, founder and CEO of Sunday. Sunday provides nutrient and soil health plans for garden and lawn care. Previously, Coulter founded Quinn Snacks, the successful farm to bag snack company. But in this episode we focus on Sunday and lawn care. We talk about pesticides, why lawn care is an overlooked massive category, and Coulter's journey as a successful serial entrepreneur.

One of Coulter's favorite books is Traction by Gino Wickman.

Here are a few questions that I asked Coulter -

1. What attracted you initially to entrepreneurship?
2. How did working at IDEO impact how you looked at business?
3. After you left Quinn Snacks, what made you decide to found Sunday?
4. Talk to me about the early days of Sunday. What were some of the challenges that you faced?
5. How did you approach your supply chain?
6. What led you to raise money and approach VCs?
7. What was the biggest obstacle when fundraising?
8. Was you being located in Colorado rather than the coasts an issue?
9. What was your launch strategy and how did you think about finding product-market fit?
10. You launched Sunday on the D2C channel. There’s lots of talk about how there is saturation in paid marketing since 85% of online ads go to Google and Facebook and theres no longer the arbitrage opportunities that existed in the early 2010s. How do you think about online advertising?
11. What’s one piece of advice that you have for founders?