Key insights about the capital markets, specifically curated to help inform DTC eCommerce founders, operators and investors. Raising money for your DTC brand? Start here.

1. eCommerce Capital Markets
Q2 2021
1
REPORT

2. About this Report
This report is intended to provide DTC eCommerce founders with a useful
baseline of information as they consider raising new capital. Data is largely
sourced from Pitchbook; we use a curated 113 private DTC eComm companies
to provide industry specific insights.
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eCommerce Capital Markets Report | Q2 2021 2

3. Liquidity Abounds:
Deal sizes up across the board; $100m+ “mega-deals” are driving record investment $
⚡ Mega-Deals made up 57%
of the YTD total deal volume
eCommerce Capital Markets Report | Q2 2021 3
Source: Q2 2021 Pitchbook-NVCA Venture Monitor

4. Angel & Seed Rounds Upsize:
Increased liquidity led to larger deals; co’s tend to be more mature and developed when accessing capital
⚡ 37% of $5-10m deals in the last
two years were Angel & Seed
rounds, up from 14% in 2013-15
Source:
Q2 2021 Pitchbook-NVCA
Venture Monitor
eCommerce Capital Markets Report | Q2 2021 4

5. Non-VC Investors* Lean In:
Asset managers and crossover investors compete for late stage deals, VCs increase focus on early stage
⚡ Massive uptick in non-VC
participation and $ in 2021
Source: Q2 2021 Pitchbook-NVCA Venture Monitor
eCommerce Capital Markets Report | Q2 2021 5

6. ⚡ E-Commerce deal totals make up
less than 3% of total YTD VC activity
*Pitchbook/NVCA does not separate out DTC E-Commerce;
Consumer Goods & Recreation used as a proxy (i.e., Retail
and Apparel, plus Restaurants, Hotels & Leisure)
Small but Mighty:
Consumer* remains a small piece of overall US VC activity; but deal volume back to pre-COVID deal levels
eCommerce Capital Markets Report | Q2 2021 6

7. ⚡ YTD 2021
Crowdfunding = 40% of deal count;
<1% of deal value
*Pitchbook/NVCA does not separate out DTC E-Commerce; Consumer Goods & Recreation used as a proxy (i.e., Retail and Apparel, plus Restaurants, Hotels & Leisure)
DTC E-Commerce* increasingly focused on Crowdfunding to raise equity, but overall sector
investment remains low
Source: Q2 2021 Pitchbook-NVCA Venture Monitor
eCommerce Capital Markets Report | Q2 2021 7

8. Qtr Company Category Exit Type Exit
Value
Post-
Valuation
Invested
Capital
Year
Founded
First
Round
Months to
Exit*
Q2-2021 Figs Apparel IPO $3,420 $3,520 $177 2013 06/2013 94
Honest Company Home Products IPO $1,340 $1,440 $600 2011 01/2011 123
Q1-2021 Knix Women’s Apparel Buyout $44 $44 $10 2012 05/2015 65
Kosan Travel Women’s Apparel M&A $4 $4 <$1 2017 02/2020 13
Q4-2020 Poppin Office Furniture M&A $175 $175 $77 2009 02/2012 93
Smartsweets Healthy Candy Buyout $360 $360 $5 2015 12/2017 34
Q3-2020 Laird Superfood Organic Foods IPO $58 $184 $111 2015 3/2017 42
GNC*** Health
Supplements
M&A $770 $770 $562 1935 04/2011 112
⚡ YTD 2
Crowdfun
<1% of de
Recent DTC E-Commerce* exits tend to take longer from initial equity rounds (average 60 months);
primarily via M&A
*Based on a list of 113 E-Commerce companie
(via Pitchbook)
**From date of first VC round or first significan
***GNC exit stats based on most recent reorga
eCommerce Capital Markets Report | Q2 2021 8

9. ⚡ Historically low rates mean investors look
toward riskier assets in search of returns
Cheap money:
Short-term interest rates remain low and flat to drive investment; how long can this last?
eCommerce Capital Markets Report | Q2 2021 9

10. ⚡ H1 2021 saw almost as much activity as
all of 2020 ($150bn YTD vs $164bn FY 2020)
Full Steam Ahead:
2021 tracking to set record for VC activity across the board
eCommerce Capital Markets Report | Q2 2021 10

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