If there’s one thing a new DTC brand startup need, it’s funding. Finding funding is one of the most important steps in creating the next cutting-edge brand. The following venture capital firms are some of the industry’s most influential.
At just seven years old, Forerunner Ventures is still relatively young. However, this has not stopped this San Francisco based venture firm. Forerunner Ventures’ portfolio is especially impressive. This firm has helped launch popular brands such as Glossier, Warby Parker, and Outside Voices. Like many venture firms, Forerunner Ventures seeks to fund unique groups that challenge consumer norms and deeply understand their consumers.
Forerunner Ventures keeps growing. Within the last year they closed a fourth fund with $360 million in capital commitments. This is nearly three times the size of its third fund that the group closed in 2016!
Collaborative Fund is another influential venture firm that funds DTC brands. Their fund size? $250 million. They see the most value in five areas: Cities, Money, Consumer, Kids, and Health. In the consumer category, they recognize the importance of healthy and sustainable products tied to an authentic brand. Collaborative Fund prefers brands that focus on a positive user experience and aesthetic design. Their notable investments in this sector include Sweetgreen, Hampton Creek, and Walker & Company.
Sherpa Capital is another San Francisco-based venture capital firm. They are most interested in technology-based DTC brands. They have proved very successful– their portfolio includes household names such as Quip, ipsy, and Pillpack.
What sets Obvious Ventures apart from other venture firms is its drive to sponsor positive social and environmental changes. They prioritize solving world problems in a profitable way. This attitude is reflected in how they encourage founders to include their values and mission on their term sheets. The goal is to combine profit and purpose.
Watertower Ventures focuses on sponsoring products with which customers feel connected. This client connection to an authentic brand is one of the most important parts of a DTC brand. Their investment size is normally between $100,000 – $500,000. Watertower Ventures’ portfolio includes brands such as Lensabl, SkinTe, and GameClub.
These venture capital firms are funding some of the world’s most popular and influential DTC brands. They have changed the retail landscape of everything from food to clothing. The future of DTC brands is exciting, and relies heavily on venture capital firms such as these ones.