Founders, Market are Key for D2C Investors

Investors and brands across the retail landscape are the crucial factors considered when raising funds

- By Mannu Mathew

F ounders, the category a brand operates in, the market for the product, and revenue growth are key considerations when investing in D2C brands, leading investors told Phygital.

"When investing in D2C, 50% of my decision is based on the founders: their resilience, why they'll push through tough times, and their unique right to win, whether it is their background, product, branding, early traction, or customer love. Next, 20% is about market potential: How big can it grow post-investment? Can it scale 5X or 10X," said Arjun Vaidya, Co-founder, of V3 Ventures.

The 2022-incepted company, backed by Belgium-based Venture Capital firm Verlinvest, is a global, founder-led venture strategy investing in consumer brands, technology, and platforms. It typically invests $1-5 million in preSeries A and Series A rounds, per the company's LinkedIn profile details.

V3 Ventures has invested in consumer brands like Katkin, Cuure, Yepoda, Wild, Holy and GoZero among others. In addition, it has also invested in enablers and consumer tech brands.

"Some industries may be great for the founder but not large enough for investors. Lastly, 30% focus is on business economics and the team: Revenue, margins, growth rate, repeat customers, and whether there is a solid team beyond the founder," he added.