Kelly Ramey

Advice for consumer brands raising later stage rounds: Valuation may be more about your investor’s target return and view of exit value than revenue / ebitda multiples Remember that in CPG there are few exits over $500m Knowing this, most private investors want to underwrite $200-500m exits and don’t want to earn less than 2x That means raising at $150m pre-money in most categories will be very hard Set your expectations right before you go out to raise, you don’t want a busted process Often the solution is insiders who want to increase ownership / exposure if even if means <2x on last money in

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Ibotta, Inc., a platform that helps CPG brands deliver promotions to millions of consumers went public today, and you probably didn't hear about it. My guess as to why? It hasn't raised money from any big-name VC firms with big marketing teams. Ibotta was started 12 years ago after Bryan Leach saw someone take a photo of a receipt for an expense report and realized there were tons of interesting data contained in that picture that was going to waste. Fast forward 13 years and Ibotta is a profitable, fast-growing business helping over 2,400 of the most notable brands like Kraft Heinz, General Mills, and Unilever. They touch over 91% of US households... Ibotta offers shoppers cash-back on in-store purchases funded by its advertisers, while also collecting all sorts of valuable data like cart makeup and much much more. They've paid out over $1.8B to consumers over the course of the company Quick 2023 Numbers: Revenue: $320M (+52%) Gross Margin: 86% (best in class despite not being traditional "SaaS") Net Income Margin: 12% (a quick turn around from a $50m loss in 2022) Adjusted EBIDTA Margin: 26% In 2022, they inked a MASSIVE partnership with Walmart that made up for a huge amount of 2023 growth via 3rd Party revenue. As a part of that deal, Walmart also owns a significant amount of the company There are some fun case studies in the S1 showing off some hot up-and-coming brands as well including poppi and Chomps. When you dig deeper, one of the more concerning parts of the business is the revenue concentration inside of Walmart, but with their significant ownership %, it's unlikely they go anywhere. Seed investors paid $0.74.share and it's going public at $88/share so that's a pretty good day at the office. Excited to see how this trades!

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At this week's Fancy Food Show, I had the chance to sneak away from the booth and spend an hour with Alison Cayne for her amazing In The Sauce podcast and it was my favorite hour of the week ☺️ There were laughs, there were tears (!) as we talked all things Lentiful and what it takes to launch a CPG brand today. It was a pretty lively conversation that covered lots of ground, including: - Tips for finding your first copacker - How not to lose your shirt spending $250k+ on Facebook ads - The surprising moment I realized we had a very different consumer base than I first imagined - The reasons behind launching into Whole Foods AND Walmart this summer and why I think we'll succeed in both! - Taking performance enhancing drugs to win pitch slam competitions - Bootstrapping tactics and the best $9 I spend each month - Why I think low sodium is the next big megatrend and why the natural food industry is sleeping on it - Why now is the best time to launch a food business (hint: because of generous people like Ali) - And so much more... Hope this helps some fellow early stage entrepreneurs out there!

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Have you ever wondered why giants like PepsiCo, Google, Microsoft, and Apple are constantly collaborating with or acquiring startups? As part of my role as GM of PepsiCo Labs,a big part of my job is to identify the needs and challenges in the business that can be solved with emerging tech and take action to address them. It is safe to say that enterprises have a lot of resources. However, they often lack the agility that startups inherently possess. Startups, on the other hand, are innovation powerhouses, unburdened by legacy systems or hierarchical decision-making. They move fast, pivot quickly, and bring disruptive ideas to the table. Enterprises that crack the code on successfully embracing startups infuse this dynamic spirit of innovation throughout their expansive, established business operations, leading to leapfrogging ahead. Startups and enterprises complement one another with their unique strengths while solving each other’s problems. After reviewing thousands of startups and collaborating with hundreds of them successfully, the magic is real. A real-life example of this magic is Bringoz Bringoz is a last-mile orchestration and optimization platform. They bring visibility and effectiveness to our frontline. They have cutting-edge technology, we have the scale. Together, we are improving the daily operations of thousands of associates. #InnovationPartnership #Startups #EnterpriseCollaboration

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Pipedream Raises $13M as It Looks to Build Underground Middle Mile Delivery Network Delivery startup Pipedream Labs has raised $13 million in a funding round led by Starship Ventures, with additional participation from Cortado Ventures, Myelin Ventures, and other investors, as reported by Michael Wolf for The Spoon. The infusion of capital will primarily be directed towards enhancing Pipedream’s “Instant Pickup” service and initiating the construction of an ambitious middle-mile network in an undisclosed city. This innovative network aims to facilitate faster and more cost-effective urban deliveries. Pipedream’s Instant Pickup service deploys its underground delivery technology at grocery stores, restaurants, and retail locations. McCurrach explained that this system allows a restaurant or grocery store to transfer an order to a customer in under 15 seconds. The company has received 100 preorders for the Instant Pickup systems, likely including its pilot project with Wendy’s announced last year. In addition to expanding Instant Pickup, Pipedream Labs plans to select a city for its first large-scale middle-mile network installation. Although McCurrach did not reveal the specific location, he shared a graphic depicting the Phoenix metro area with a diagram of a "small middle mile network." “This year, we will be selecting a city to build our first middle-mile network—a large-scale underground delivery network that makes current deliveries faster and cheaper in a city—and collaborating with local government and city officials to maximize the benefits of our low-cost, fast delivery system for all their citizens. Construction is set to begin this year, with plans to start utilizing the network by next spring,” McCurrach stated. The company is expected to find more immediate traction with its Instant Pickup service, as deploying extremely short-range delivery systems within a confined area is considerably easier than implementing a city-wide installation. The growing demand for curbside pickup and fast food drive-thru innovations presents a timely opportunity for Pipedream Labs to expand its presence in these sectors. Pipedream Labs' push into curbside pickup and drive-thru technology aligns with current trends in grocery and quick service restaurant industries, which are increasingly focusing on enhancing their pickup services and reimagining drive-thru experiences. By advancing its underground delivery technology, Pipedream Labs is poised to transform urban logistics, offering a glimpse into the future of efficient, rapid, and cost-effective delivery solutions. Stay ahead with the latest in food delivery news from the weekly Boolanga Business Bites newsletter, brought to you by Wear Your Brand. Sign up for our LinkedIn newsletter now to receive weekly updates directly to your inbox every Monday.

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In November 2023, Crunchbase famously declared that 'VCs no Longer Do DTC' - as financings in the category were down 97%. This has led to much conversation around the viability of VC x DTC, and has left many wondering where it all went wrong. Fear not, as I wrote 4,000 words outlining exactly what happened, and it starts by considering the following high profile failures: - Dollar Shave Club, divested by Unilever after a $1 billion acquisition. - Bonobos, sold $75 million after being acquired by Walmart for over $300 million. - Outdoor Voices, imploded after raising $70 million. - Smile Direct Club, from IPO to bankruptcy in just four years. These stories are part of a longer list of DTC brands that faced similar fates. So, how did it happen? The Rise: To understand the downfall, we need to look at the rise of venture capital. VC has grown exponentially—from $30 billion in 2006 to hundreds of billions by 2021. This influx of money meant there were far more funds than viable 'venture scale' investment opportunities. Investors looked for opportunity beyond SaaS The SaaS Illusion In the early days, DTC brands looked remarkably similar to SaaS. High gross margins, recurring revenue models, and heavy investment in technology infrastructure made them appealing to VCs. Oftentimes, DTC brands would have full teams of engineers building their websites and analytics. Ultimately, the products these technology teams were making would prove to be valuable vertical SaaS products (Shopify). Then, Dollar Shave Club was acquired for $1B. Proving that DTC could in fact produce venture returns at real scale. The Fall: VCs had seen DTC as a new frontier. The internet enabled a new wave of brands that could sell directly to consumers that could [apparently] generate massive returns. But as the market matured, cracks began to appear. Ironically, DTC brands that swore to cut out the middleman (retailers) and pass on margin to the customer created new, more powerful middlemen—social media platforms and online marketplaces that proved to be able to capture more margin than any retailer, x100. Additionally - bad accounting, Facebook arbitrage convergence, market saturation, increased competition, inflation, privacy changes, and shifts in consumer behavior post-COVID further eroded profits. The Conclusion: In the end, the DTC model couldn't sustain the weight of expectations. Don't get me wrong - many VCs made a killing on DTC. It is rumored that Kristen Green of Forerunner turned $250k in $35M by investing into Dollar Shave Club's first financing - a notable transaction that I theorize skewed investor underwriting models for the next 10 years. My prediction is that By 2028, it's likely that CPG-focused 'venture' capital will be a thing of the past, and traditional PE firms will prove to be the CPG capital provider of choice. For a deeper dive, read the full article here: https://lnkd.in/g5xnCwHM

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Amongst the most successful VCs in consumer in the past decade has been Kirsten Green at Forerunner So I asked her all about how startups can navigate the 70% reduction in consumer investing & why now might be the best time for VCs to look harder at the category. I loved this discussion. I always learn something from Kirsten. Click below to watch / listen https://lnkd.in/g3kiMPD5

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A lot of you have heard me say "we aren't thematic investors EXCEPT when it comes to our consumer thesis and Vertikal Brands". So what does that mean exactly, and how did we choose to double down on outdoor specifically? I recently sat down with Matt Blevins who heads up the strategy for Clearview Capital, L.P. and we had the chance to talk about just that! Tune into our third episode of 'Coffee with Clearview' to learn more about how we got started in the space, and how we continue to partner with world-class outdoor consumer brands. #consumerprivateequity #consumerproducts #privateequity #outdoorenthusiast #outdoorbrands

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The face you make when you realize that you have become pretty good at sourcing off-market opportunities and have private equity and family office investors ready to back you, but you don’t have enough talent to take advantage of those opportunities. With that said, if you know of anyone in the commercial bakery, dry cleaning, food distribution, or commercial laundry space who is looking for board and/or C-level opportunities, please let me know. #boardadvisor #clevel #executives #commercialbakery #commerciallaundry #drycleaning #fooddistribution #privateequity #investmentbanking

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There's basically nothing proprietary about food delivery... Within the food delivery service industry, a few major players effectively form an oligopoly,(Uber DoorDash Grubhub )to name the big ones)- controlling the majority of the market and limiting competition. We see that here https://bit.ly/3W1IpeU , an interesting read about the future of food delivery services.🍟 🍔 Branded Hospitality Ventures Michael Schatzberg Jimmy Frischling Aron Hollander Zachary Kandel Purba Majumder Jordan Stack Josh Buchmann Tony Xu Ryan Parietti Howard Migdal Craig Whitmer #Restaurants #Hospitality #Technology #FoodDelivery

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One major way to be a signal amongst noise to LPs for Emerging Managers is to make introductions to other GPs. This might be a little counterintuitive, but is one of the most compelling things a GP can do. It shows the LP various things about you: 1. Your character. You are not extractive, but oriented towards a trusting relationship. This matters more than most give credit to. 2. Your network. The quality of your network matters significantly. If you know the best investors, you most likely know the best founders. What better way to prove this than to show who you know? 3. You know what makes for a good Emerging Manager. You would of course only make introductions you yourself believe are good. So every introduction you make to a fellow GP, shows the LP that you have a strong sense of what it takes to be good. 4. You are strategic. Making the right introductions at the right time will be a key in how you support your portfolio and guarantee returns for your LPs. This is one way to show your ability to make those intros.

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Want to know the story behind those unique Asian-inspired sparkling water flavors you've been seeing? I sat down with Sandro Roco of Sanzo on the Consumer Rundown podcast. We talked #Asian representation and voices, building a #beverage empire, and the importance of being a "good ancestor"! Listen to the full conversation – link in comments! #entrepreneurship #cpgindustry #beveragebusiness

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Excellent summary of the current capital landscape for early stage CPG and the developments over the past 10-15 years that have led us to this point.

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What makes the government pay attention?     When you mess with regular people.     Live-Nation and Ticketmaster have created a bad experience for consumers. You can feel it every time you buy a ticket.     The DOJ is hawkish right now. They do not want to see massive M&A expansions. They also want regular people to see the efforts of their anti-monopoly policy. Coming for ticket price gougers? It makes total sense for the DOJ.     How will this affect M&A? For the big players, it has gotten harder. For smaller, middle-market businesses, it creates more opportunity.  

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Campbell's Soup reported better-than-expected quarterly results and raised its annual sales growth forecast, attributing the improvement to increased demand for soups and frozen meals and the acquisition of Sovos Brands, known for Rao's Specialty Foods, Inc. sauce. After a period of decline, Campbell's sales volumes improved sequentially this year, aided by softer price increases and recovering consumer spending. CEO Mark Clouse highlighted gains in the cooking side of the portfolio. With the acquisition of Sovos, Campbell anticipates a 3-4% annual sales growth. Analysts view the acquisition positively for Campbell's growth prospects. Despite a rise in quarterly profit and sales, Campbell adjusted its annual organic sales and profit forecasts downward due to ongoing challenges in its snacks business. Read the full article here: https://lnkd.in/exuaeKVG Branded Hospitality Ventures #innovation #hospitality #technology #marketing #venturecapital Gerald Drummond Robert Furbee Charles Nevin Mike Pierson Dan Poland Carrie Anderson Chris Foley Stewart Lindsay Danielle Brown

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Actress Eva Longoria has joined Siete Family Foods in an equity deal with the goal of building a billion-dollar brand Siete Foods was founded in 2014 and quickly became popular for its vegan, grain-free Mexican-American snacks. Since its launch, Siete has raised more than $90 million in funding. Now Actress Eva Longoria is also part of the brand. Longoria is best known for her work as an actress, but she's no stranger to the food world. She co-founded the tequila brand Casa Del Sol and the cookware brand Risa. Now she is adding Siete Foods to her portfolio. "I'm a long-standing fan of Siete's products, but more importantly, I feel deeply aligned with their mission," Longoria said. "As a fellow Texan who is dedicated to elevating Latinos in business, I'm very excited to partner with Siete and contribute to their next chapter." Siete Foods expects to hit $500 million in annual sales in 2024 and sells its products at 37,000 stores, including Target, Walmart, and more. With this partnership, the goal is to double that revenue to a billion dollars per year, Longoria said. This partnership makes a lot of sense for a few reasons: 1) Longoria had been an ‘organic’ customer of Siete Foods, long before they began to explore a collaboration. It enables her to speak authentically to her +10M followers about the brand. 2) Longoria founded a foundation in 2012 to help Latinas build better futures for themselves through education and entrepreneurship. Siete Foods could function as a flywheel for all the other Latino-owned businesses in her portfolio. 3) (Might be obvious) Longoria is a Latina and has a dedicated following of other Latinos. Clear celebrity-product-market fit if you ask me. 

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Exciting News for CPG Founders! Aurora James has launched a not-to-be-missed podcast series for CPG founders called Friends and Family. The debut episode features Emma Grede sharing invaluable insights from her experiences running SKIMS, Good American, and Safely. Imagine having coffee or cocktails with an amazing VC and CEO, where you not only have fun but also gather actionable advice on topics like developing your employee development approach across the stages of your company's growth. Special Highlight: Eva Chen, Instagram's Head of Fashion Brand Partnerships, graces the episode with stellar advice for brands aiming to boost their social media strategies and enhance their online presence. Pro Tip for CPG Brands from the Podcast: Community is key! Dive deep into engagement by sharing your brand’s journey, including the highs and lows. Authenticity and personal connection should drive your content strategy. Don't chase perfection—aim for connection. Experiment with different Instagram formats like Stories and Reels to discover what truly resonates with your audience. Remember, your followers are more than just numbers; they are your community. Listen, engage, and grow together.   Have you listened to the episode? Let's connect! I'd love to hear how emerging brands and founders are leveraging and implementing these strategies.  

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Your company is missing out on investment, partnerships and growth due to mediocre financial reports. Reports built by amateurs can spotted a mile away. The pros do it differently. In a nutshell, this is the way they're crafted: The first 50% ensures that you CEOs receive the most important data that would help make informed & smart decisions. And the presentation, which is latter 50%, is equally important. Be it for clarity. Be it for aesthetics, or ease of read, etc. Dive into how a proper report should be designed. --- Visit our Website: https://lnkd.in/egaMwPMp

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