DeepSummary
The episode features an interview with Dayton Miller, a Managing Partner at BFG Partners, a venture capital firm investing in better-for-you food, beverage, and consumer products. Dayton discusses the different stages of investment, from seed to Series A and Series B, and the typical revenue ranges and valuation metrics at each stage. He also shares his perspective on raising capital, the importance of capital efficiency, and the potential impact of drugs like Ozempic on consumer demand for health and wellness products.
Dayton emphasizes the significance of building a strong business with attractive margins and a compelling value proposition for consumers. He believes that competition within a category can be beneficial as it raises consumer awareness and drives innovation. Additionally, Dayton highlights emerging trends in the industry, such as a focus on mental health, emotional support, and general well-being, alongside functional ingredients like fiber and protein.
Throughout the interview, Dayton draws from his experience as an entrepreneur, having founded and built Function Drinks to $20 million in sales before exiting. He offers insights into identifying promising consumer products, evaluating market positioning, and considering strategic fit when making investment decisions. Dayton's perspectives provide valuable guidance for both entrepreneurs and investors navigating the evolving consumer landscape.
Key Episodes Takeaways
- Venture capital may not be suitable for every business, and it's important to provide honest advice about the implications of raising capital.
- Building a strong business with attractive margins and a compelling value proposition is crucial for success in the consumer products industry.
- Competition within a category can drive innovation and raise consumer awareness, benefiting the overall market.
- Emerging trends in the industry include a focus on mental health, emotional support, general well-being, and functional ingredients like fiber and protein.
- Understanding and capitalizing on consumer trends and differentiating factors are key to standing out in a competitive market.
- Drugs like Ozempic may have a significant impact on consumer demand for health and wellness products, presenting both challenges and opportunities.
- Entrepreneurial experience can provide valuable insights and perspectives for investors in the consumer products space.
- Capital efficiency and strategic deployment of capital are essential considerations when raising funds and scaling a consumer business.
Top Episodes Quotes
- “Once you take capital from an institution, it's either a gift or it's an investment, and people are going to want their money back at some point.“ by Dayton Miller
- “We always say venture capital is not for everyone. Try to give super honest advice, right.“ by Dayton Miller
- “If you're not different, then it's just, it's a long slog.“ by Dayton Miller
- “Innovation can take many different shapes and sizes and packaging. Innovation is real innovation that should be appreciated 100, 100%.“ by Dayton Miller
- “I think weight loss is something that never goes out of style. It's like weight loss, energy and sleeper are three functionalities that you can always bank on that americans always need.“ by Dayton Miller
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Episode Information
The Consumer VC: Venture Capital I B2C Startups I Commerce | Early-Stage Investing I Brands
Mike Gelb
4/24/24
Our guest today is Dayton Miller, Managing Partner at BFG Partners. BFG Partners help entrepreneurs build exceptional businesses that deliver sustainable growth and outperform competitors in the better-for-you food, beverage, and consumer products space. Their investments include Olipop, Athletic Greens, Caulipower, and Bobo’s. We discuss the inflection points at seed, series A, and Series B in today’s market, categories he’s excited about in consumer today, ozempic, operations metrics, and his time as an entrepreneur building Function Drinks from scratch to $20 million in sales.
Thank you to our Partner –– Propeller Industries
Propeller Industries is the leading strategic finance and accounting partner for venture-stage companies.