Where top VCs are investing in D2C

Now that a few high profile DTC brands have been punctured on the public market and the economy is crashing, VC-driven DTC business model will likely go into its own recession. Without DTC, there is an opportunity for a variety of smaller, more sustainably funded players who do not seek hypergrowth.

What was innovative in 2010 is now table stakes. E-commerce paired with Instagram ads and a modern logo is no longer a novel experience. “DTC was an insight 10 years ago,” said Ben Lerer.

The direct-to-consumer wave began in the twenty-tens as a new generation of startups promising to “disrupt” traditional industries for consumer goods. Instead of leaving the market to century-old stalwarts like Gillette, for example, a company like Dollar Shave Club, founded in 2011, would set up its own supply chains to manufacture razors; add cle... See more

Big tech platforms, e-commerce, and retail companies haven’t been acquiring direct-to-consumer brands, keeping a set of well-funded would-be buyers out of the equation.