This document discusses trends in direct-to-consumer ecommerce brands. It notes that many new DTC brands have emerged but exits have been limited. It identifies challenges for DTC brands in areas like capital needs, distribution, and discovery. Macro trends include the slowing of brick-and-mortar retail and Amazon's dominance in online retail. Notable DTC brands that have raised significant funding are mentioned. Reasons acquirers purchase DTC brands and the typical multiples paid are summarized. The document concludes that high revenue is needed for adequate investor returns from DTC brands.
A reproduction of the official pitch deck template recommended by leading VC firm Sequoia Capital.
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
Introduction and workshop to develop student team concepts into business model hypotheses. Focused on value proposition design, customer segments, and the rest of the Business Model Canvas.
A reproduction of the official pitch deck template recommended by leading VC firm Sequoia Capital.
YOU MIGHT ALSO LIKE THESE PITCH DECK EXAMPLES & TEMPLATES:
> Airbnb pitch deck @ https://pitchdeckcoach.com/airbnb-pitch-deck
> Sequoia Capital pitch deck template @ https://pitchdeckcoach.com/sequoia-capital-pitch-deck
> FREE pitch deck template download @ https://pitchdeckcoach.com/free-pitch-deck-template
> Pitch deck guide with hints, tips, and a worked example @ https://pitchdeckcoach.com/pitch-deck-template
NEED HELP WITH YOUR PITCH DECK?
See how I can help then book a free call @ https://pitchdeckcoach.com/
MORE PITCH DECK RESOURCES @ https://pitchdeckcoach.com/pitch-deck-template#resources
Introduction and workshop to develop student team concepts into business model hypotheses. Focused on value proposition design, customer segments, and the rest of the Business Model Canvas.
Información acerca de los cambios fiscales en la facturación electrónica que entran en vigor en julio 2012
GSIEMPRE SOFTWARE www.gsiempre.com
Tel. 52 (644) 414.27.95 Ciudad Obregón, Sonora, Mexico
Hybrid datasenter - fremtidsrettet og optimalisert med Microsoft Cloud OSKenneth de Brucq
Dell Solutions Tour 2014 Norge
Knut Møllevik –Partner Technology Strategist, Microsoft
Få med deg siste nytt fra Microsoft sin partner konferanse i Washington. Valg av rett plattfrom er kritisk for å nå bedriftens mål, Microsoft viser hvordan du får mest mulig ut av eksisterende hardware ved bruk av Hyper-V, Storage Spaces, System Center og Azure.
Scale-up seems easier than start-up in many ways. You've established product-market fit. You've sold $5 or $10M in ARR. You've found a buyer persona to sell and problem (aka, use-case) to solve. You've answered all the hard questions. Now, all you have to do is scale it up. Easy-peasy, right? Not so fast. In this presentation, I'll cover what I see as the top 5 mistakes made during the scale-up phase based on my experience as a CEO of two startups in the $0 to $100M range, CMO of two in the $50M to $1B range, advisor to dozens of startups, and EIR at Balderton capital where we work with scores of startups at both the early and growth stages. We'll discuss: premature scaling, US expansion, insufficient enablement and support, inexperienced management, and the delicate topic of reacceleration after a stall. As a bonus, we'll talk about when your "second album" (i.e., product) should come out and how to maintain focus in a world of market- and sometimes board-driven distractions. See you there!
My presentation at Gamification World Congress 2014, focused on the results of a survey that analyzes the actual state of gamified loyalty in eCommerce.
Información acerca de los cambios fiscales en la facturación electrónica que entran en vigor en julio 2012
GSIEMPRE SOFTWARE www.gsiempre.com
Tel. 52 (644) 414.27.95 Ciudad Obregón, Sonora, Mexico
Hybrid datasenter - fremtidsrettet og optimalisert med Microsoft Cloud OSKenneth de Brucq
Dell Solutions Tour 2014 Norge
Knut Møllevik –Partner Technology Strategist, Microsoft
Få med deg siste nytt fra Microsoft sin partner konferanse i Washington. Valg av rett plattfrom er kritisk for å nå bedriftens mål, Microsoft viser hvordan du får mest mulig ut av eksisterende hardware ved bruk av Hyper-V, Storage Spaces, System Center og Azure.
Scale-up seems easier than start-up in many ways. You've established product-market fit. You've sold $5 or $10M in ARR. You've found a buyer persona to sell and problem (aka, use-case) to solve. You've answered all the hard questions. Now, all you have to do is scale it up. Easy-peasy, right? Not so fast. In this presentation, I'll cover what I see as the top 5 mistakes made during the scale-up phase based on my experience as a CEO of two startups in the $0 to $100M range, CMO of two in the $50M to $1B range, advisor to dozens of startups, and EIR at Balderton capital where we work with scores of startups at both the early and growth stages. We'll discuss: premature scaling, US expansion, insufficient enablement and support, inexperienced management, and the delicate topic of reacceleration after a stall. As a bonus, we'll talk about when your "second album" (i.e., product) should come out and how to maintain focus in a world of market- and sometimes board-driven distractions. See you there!
My presentation at Gamification World Congress 2014, focused on the results of a survey that analyzes the actual state of gamified loyalty in eCommerce.
Presentation to Continuing Education program at Capilano University on a general overview of retail as a career, state of the industry, and retail management.
RetailOasis 6th Annual Big Breakfast PresentationsMadeline Kulmar
Presentations from:
- Richard Facioni, Alceon
- Anna Samkova, The Pas Group
- Mark Teperson, Accent Group
- Rachel Kelly, AfterPay
- John Mullins / James Johnson, Salesforce
- Pippa Kulmar, RetailOasis
- Steve Kulmar, RetailOasis
- Madeline Kulmar, RetailOasis
Our 6th annual Big Breakfast, on the back of our time spent in NYC, Paris, + London talking to the best of the best retailers like Selfridges, Nordstrom, Neiman Marcus, Saks, Le Bon Marche as well as a summary of our time spent at the National Retail Federation Big Show.
Skills and experiences on a resume are nothing compared to your greatest professional achievements you can proudly find in retail stores... And with a smile you say to yourself "I have made this, from alpha (idea) to omega (product), I am a part of this successful story"
Investing in Brazil and Russia - Fabrice GrindaLe Web
The Trials and Tribulations of Angel Investing in Brazil, Russia and around the world
Fabrice Grinda's video at LeWeb 2011: http://youtu.be/EvfyUb42tuc
And his blog : http://www.fabricegrinda.com
2. What
The number of direct-to-consumer brands have
exploded. The exits have not.
Two major distinctions:
● Producers vs. resellers vs. platforms
● Does it have a barcode?
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3. Direct-to-consumer challenges
● Capital intensive
o Supply chain, product
development, etc.
● Distribution
● Discovery
o Lots of marketing
o Constant promotion
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5. Macro Trends
● Brick-and-mortar is slowing (not dying, it’s still huge)
● Major ecom players don’t change (they do buy though)
● If it has a UPC, Amazon owns it
● Investors smell blood (retailers’)
● Not an advertising-dependent
business model
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6. Micro Trends
● VC-backed ecom-related companies saw the most exits in 2013
● 2012 and 2013 marked huge investments, but ecom investment slowing
● YoY deal activity by 20 top VCs fell 35% between
2012 and 2013
6CB Insights
7. They get big...
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● One Kings Lane - $225M raised
● Harry’s - $212M raised
● Quirky - $185M raised
● Bonobos - $128M raised
● Honest Company - $122M raised
● Warby Parker - $116M raised
● Rent the Runway - $115M
● Beachmint - $75M raised
● Birchbox - $72M raised
● Teespring - $60M
● Julep - $56M raised
Important distinction: You make your own product or you don’t.
8. Ecom Unicorns
Greg Bettinelli (UpFront VC & HauteLook) on identifying ecommerce unicorns:
1. An authentic founder/team
2. Early organic growth
3. Proven/potential operational excellence
4. Attractive market and margins
5. Companies that are in a position to excel in a changing world
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9. Notable exits
● Zulily IPO
● Wayfair (Joss and Main) IPO
● Toms Shoes Bain Capital (50% at
$625M valuation)
● Fanatics Kynetic
● Tonx Blue Bottle
● ShoeDazzle JustFab >$40M ($66M
raised)
● HauteLook (flash sales) Nordstrom for $180M ($41M
raised)
● Net-a-Porter (retailer) Richemont ($500+ million, >4x
GMV, 35x EBT)
● Jackthreads (retailer) Thrillist
● Tiny Prints (mass customization) Shutterfly for $333M (~$59M9
D2C ecom...
Related...
10. Who today?
● Harry’s Shaving
● Everlane Clothing
● Casper Bedding
● Warby Parker Eyeglasses
● Mott and Bow Jeans
● Cotopaxi Outdoor gear
● Keen Home Smart home
● Hello.is Smart home
● Luna (Morphy) Smart
bedding
● Naja
Underwear
● Julep
Make-up
● Brilliant Bikes Bikes
● Aloha
Health food
● Petflow Pet food
● J. Hilburn Men’s
clothing
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● Nasty Gal
Women’s clothing
● Moda Operandi Clothing retailer
12. Brick-and-mortar
● Where most shopping happens (Over 90% of retail doesn’t happen online)
● Established distribution channels
● Fewer returns
● Personalized customer support
● Example: Toms Shoes
12Census.gov
13. Why not brick-and-mortar
● Startups need distribution
but at what price?
● Can you achieve startup
growth after losing markup?
● Offline sales means no
customer data
● No customer ownership
● Brick-and-mortar still has
costs involved
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14. Retail in reverse
Start online and then move to brick-and-mortar for
branding, prestige, access to customers, PR (and ego).
● Harry’s (SoHo)
● Warby Parker (SoHo)
● Everlane (SoHo)
● Bonobos (SoHo)
● Birchbox (SoHo)
● Plus Google, Samsung,
and Amazon
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Image via Warby Parker
15. Why ecoms are acquired
● For brand
● Startups innovate and experiment
o Julep: 52 different products in a year (300 says PR)
● Outsource innovation (and risk)
● Buy online disruptors
● Better shopping experience
o Fun, streamlined, something to believe in...
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16. Who will acquire?
● Retailers
o Losing market or flat, while online grows rapidly
o Fear the future
● Brands - Who can’t innovate
at the pace of startups
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17. The exits
● Lack of public data and IPOs means a lack of information
● Andrew Mitchell, Brand Foundry Ventures:
o D2C: “1-5x [revenue] mostly” depending largely on product margin
o Marketplaces (many users, low margins): 2-2.5x
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18. The multiples
Vertically integrated D2C companies with high
margin products have the highest valuations*
● Lululemon: 7x EV/Revenue
● Michael Kors: 6x
● Asos: 3x
● Under Armour: 3x
● Crocs: 1.2x
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● OpenTable: 5.75x
● Rakuten: 2.25x
● Blue Nile: 1x
● Blue Fly: 0.25x
● Overstock: <0.25x
vs.
* At time of IPO
19. The multiples in practice
Goal: 10x return (after dilution)
Casper (mattress startup):
● Raised: 2M
seed
● Valuation (guess): 15M
● 20x post-money (for 10x exit after dilution): 300M exit goal
● Necessary revenue at exit (2-3x): 100 - 150M
● 2014 revenue: 15M
● 2014 raised another 13M, valuation unknown
19
IRR: 86% (5 years)
20. Summary
● Brick-and-mortar can help, but it isn’t the answer
● To get adequate return, revenue has to be quite high
● There are buyers, but they aren’t buying
● Alternative exposure to ecom: Shopping support not
shopping (Shopify IPO, payments, mobile shopping
platforms, Bigcommerce) and marketplaces
20
21. VCs - First Round
First Round Capital
● Aloha - https://aloha.com/home - Health food, tea
● Birchbox - https://www.birchbox.com/ - cosmetics
● Bloomthat - https://www.bloomthat.com/ - flowers
● Blue Apron - http://www.blueapron.com/ - food boxes
● Boxed - https://www.boxed.com/ - food
● Fab - http://fab.com/ - home decor
● Homejoy - https://www.homejoy.com/ - home cleaning
● Kiwicrate - http://www.kiwicrate.com/ - sciency gifts for kids
● Modcloth - http://www.modcloth.com/ - women’s fashion
● Moveloot - https://www.moveloot.com - secondhand furniture
● Realfoodworks - http://www.realfoodworks.com/ - cooked food
● TheBlackTux - https://theblacktux.com/ - tux rentals
● ThreadFlip - http://www.threadflip.com/ - women’s clothes
● True and Co. - https://trueandco.com/ - bras
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22. VCs - Maveron
Maveron
● Drugstore.com - http://www.drugstore.com - online drugstore
● Everlane - https://www.everlane.com - high-end clothes
● Julep - https://www.julep.com/ - makeup
● Madison Reed - https://www.madison-reed.com/ - hair color
● Zulily - http://www.zulily.com/ - stuff for people with kids
● Goodbelly - http://www.goodbelly.com/ - probiotics
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