Every startup has AI in their pitch deck and they should according to Forerunner Ventures' Eurie Kim
Consumer startups have taken a hit when it comes to venture funding. But according to Eurie Kim, partner at Forerunner Ventures and founding member of All Raise, consumer is where it’s at.
The investor joined Mary Ann Azevedo on Equity to talk through the intricacies of the space. She pointed out that last year, just 7% of seed capital went to consumer startups. Yet, research shows that consumer company performance has outpaced enterprise, Kim contends. Forerunner itself has backed the likes of Oura, Chime and Prose, among others.
Kim also talked about the advantages of being dedicated investors in a space that has seen a number of tourist VCs drift in and out. In addition to discussing the state of consumer investing and what consumer investors are looking for, the venture capitalist shared her thoughts on the investment landscape as a whole, what’s up with IPOs and why every startup should have AI in their pitch deck.
Equity is TechCrunch’s flagship podcast, produced by Theresa Loconsolo, and posts every Monday, Wednesday and Friday. Subscribe to us on Apple Podcasts, Overcast, Spotify and all the casts.You also can follow Equity on X and Threads, at @EquityPod. For the full episode transcript, for those who prefer reading over listening, check out our full archive of episodes over at Simplecast.
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20VC Will Seed Pricing Remain High | Where is the Funding Crunch? | Three Core Elements Required to Raise a Series B/C | Why AI is Like the Lottery Today | Why Now is the Best Time to be Investing in Crypto | Why Investors Do Not Want to Reprice Companies
Rebecca Kaden is a Managing Partner @ Union Square Ventures, one of the leading early-stage firms of the last decade with investments in Twitter, Twilio, Coinbase and many more.
Nicole Quinn is a General Partner @ Lightspeed where she has led investments or sits on the board of Calm, Cameo and LunchClub to name a few.
Eurie Kim is a Managing Partner @ Forerunner Ventures, the leading early-stage consumer fund. Eurie has led investments and sits on the board of Oura, The Farmers Dog, Curology and more.
In Today's Roundtable We Discuss:
1. Seed Rounds:
Is it even possible for traditional seed funds to play in a world of multi-stage funds investing so aggressively at the seed stage?
Is seed immune to the macro environment? Will seed pricing remain as high as ever?
What advice does the team have for seed founders approaching a Series A? What do they need?
2. Series A:
How is the Series A market looking today? Is there a crunch at the Series A?
To what extent are valuations compressed at the Series A?
What 3 core elements do companies at the A stage, looking for a Series B next, need to focus on?
3. Series B and Beyond:
Is the real crunch at the Series B?
Why are down rounds so much better than structured rounds for companies raising?
Will we see a wave of M&A in the next 12 months?
4. Crypto, AI and Hot Takes:
Why is now the best time to be investing in crypto?
Why is investing in AI a lottery right now?
What is the most controversial thing that each believes today?
20VC: Why Brands Can Have The Same Revenue Multiples As Enterprise Companies & The Right Way To Think About Amazon In Today's World of Commerce with Eurie Kim, General Partner @ Forerunner Ventures
Eurie Kim is a General Partner @ Forerunner Ventures, the early stage firm dedicated to investing in entrepreneurs defining the next generation of commerce. Fun fact, they are the only firm to have investments in both Jet.com and Dollar Shave Club, two of the biggest and highest-profile e-commerce exits in recent years. Forerunner also counts Birchbox, Bonobos, Glossier, Hotel Tonight, Warby Parker and Zola among its portfolio companies. Prior to Forerunner, Eurie was a consultant at Bain and before that an investor at Castanea Partners. Eurie currently sits on the boards of companies such as Away, MoveWith and The Farmers Dog, just to name a few.
In Today's Episode You Will Learn:
1.) How Eurie made her into the world of VC and investing in the next generation of commerce with Forerunner?
2.) How does Eurie look to argue that commerce deals do attain the same revenue multiple on exit as enterprise deals? Do Forerunner think about exit potential when investing in companies? How does this Eurie's thesis on both ownership and price sensitivity? What are the required fund-returning ownership levels today?
3.) With the time it takes for brands to flourish, how does Forerunner think about reserve allocation? How does Forerunner determine which companies to double down on and which to constrain capital? Why does Eurie believe that it takes less time than ever for brands to flourish today? What is a good example of this?
4.) How does Eurie define the term "digitally native vertically integrated brand"? What are the core components that make those all star brands of today shine in the early days? What are the commonalities in those successful founders that build these mega brands?
5.) Given the rise of some prominent new brands eating incumbent market share, does Eurie believe this is a market of consolidation or new incumbents will be made? How does Eurie view the role of Amazon? To what extent does Eurie observe and analyse Amazon's activity?
Items Mentioned In Today's Show:
Eurie's Fave Book: Blue Ocean Strategy
Eurie's Fave Blog: Business of Fashion
Eurie's Most Recent Investment: Shop Shops
As always you can follow Harry, The Twenty Minute VC and Eurie on Twitter here!
Likewise, you can follow Harry on Snapchat here for mojito madness and all things 20VC.
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