Consumer Investment Research

For a long time, I have been fascinated by how successful companies build consumer brands across tech, consumer products and yogurt :-)

This summer, I worked with Matt Heiman on a research project to do a deeper dive into consumer investments across a wider range of industries than tech.

Ultimately as a VC, we are in the business of funding outliers. And we can point to huge outliers across a number of categories including low margin businesses (walmart/costc0), consumer hardware (fitbit), etc. — but looking at different data sets is interesting. After putting a bunch of stuff together, I thought I would share what we dug up.

Excited to hear your reactions/thoughts online or offline.

The link: https://drive.google.com/file/d/0B0RgmdZ4l-HzWUFHWEd6STdNeDQ/view?usp=sharing

Some non-obvious results:

  • A number of non-tech companies have scaled to $1bn in sales as fast as many tech companies
  • Many people believe categories like shoes are not “winner-take-most” but that has not been the case (e.g., Nike>60%)
  • Many branded companies have software-like margins
  • etc…

Enjoy. — Saar

p.s. — there are a thousand ways to criticize the data…and I get that. Many of the big mkt cap consumer companies have been around for a long time for example. But hopefully you still find some nuggets in here.

https://drive.google.com/file/d/0B0RgmdZ4l-HzWUFHWEd6STdNeDQ/view?usp=sharing

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