Adam Pritzker, Chairman & CEO of Assembled Brands, shares key indicators for evaluating consumer brand performance on social platforms.
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“And the best sign that a brand is doing well is what I would guess I would call organic referral. So it's people are seeing the content, they're commenting on the content, and they're sharing the content organically.”
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More from Adam Pritzker
AssertionNot checkable as stated
Traditional banks lack capability to underwrite individual DTC transactions
“With marketplaces like Amazon, social platforms like Instagram, and e-com platforms like Shopify, the buyer is now individuals, not stores. And factors and banks don't know how to underwrite that scenario, and we do.”
Adam PritzkerMar 15, 2019▶ 9:2120VC: Why The Current VC Financing Mechanism For Consumer Brands Is Broken, Why The Infrastructure To Power Emerging Brands Is Broken and What The Re-Platforming of Retail Means For The Next Decade in Consumer with Adam Pritzker, Chairman & CEO @ Assemble
Insight
VC hyper-growth expectations conflict with the reality of scaling physical inventory
“And the problem with VC financing and the manufactured consumer goods space is that the growth expectations exceed the reality of prudently growing a physical inventory base.”
Adam PritzkerMar 15, 2019▶ 10:3420VC: Why The Current VC Financing Mechanism For Consumer Brands Is Broken, Why The Infrastructure To Power Emerging Brands Is Broken and What The Re-Platforming of Retail Means For The Next Decade in Consumer with Adam Pritzker, Chairman & CEO @ Assemble
Insight
Consumer brands suitable for venture capital financing are rare exceptions
“They tend to have very few skews and have a strategy in which they underprice the incumbent by selling direct, and those categories might include mattresses, razors, eyewear, and beauty, but again, I would say those are rare birds. Those are the exceptions to …”
Adam PritzkerMar 15, 2019▶ 11:5520VC: Why The Current VC Financing Mechanism For Consumer Brands Is Broken, Why The Infrastructure To Power Emerging Brands Is Broken and What The Re-Platforming of Retail Means For The Next Decade in Consumer with Adam Pritzker, Chairman & CEO @ Assemble
Opinion
Profitable consumer brands at $30M-$40M revenue make poor VC investments
“Brands don't have to grow forever. They can get to 30 or forty million in revenue and generate profit, which is why they're not great VC investments, but that doesn't mean they don't deserve capital.”
Adam PritzkerMar 15, 2019▶ 16:0620VC: Why The Current VC Financing Mechanism For Consumer Brands Is Broken, Why The Infrastructure To Power Emerging Brands Is Broken and What The Re-Platforming of Retail Means For The Next Decade in Consumer with Adam Pritzker, Chairman & CEO @ Assemble
PredictionHeld up
Consumer brand exits will remain small, niche acquisitions over mega returns
“Definitely the latter. The media happens to like to cover the former, so there are amazing exceptions to the rule, and those are just wonderful stories. I think the reality is those are, again, exceptions to the rule.”
Adam PritzkerMar 15, 2019▶ 22:3220VC: Why The Current VC Financing Mechanism For Consumer Brands Is Broken, Why The Infrastructure To Power Emerging Brands Is Broken and What The Re-Platforming of Retail Means For The Next Decade in Consumer with Adam Pritzker, Chairman & CEO @ Assemble
AssertionContradicted
90 of the top 100 consumer brands lost market share in 2018
“So, 90 of the hundred largest brands lost share in 2018.”
Adam PritzkerMar 15, 2019▶ 5:5820VC: Why The Current VC Financing Mechanism For Consumer Brands Is Broken, Why The Infrastructure To Power Emerging Brands Is Broken and What The Re-Platforming of Retail Means For The Next Decade in Consumer with Adam Pritzker, Chairman & CEO @ Assemble
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