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How Ecommerce Brands Can Fund Growth: Winning DTC Math

OPERATORS · with Curtis Matsko · April 22, 2026 · 66 min

Summary

This episode uncovers how DTC brands can fund growth without relying on external capital, highlighting the harsh realities of cash flow management. It features a gripping founder story about surviving a multi-million dollar line of credit withdrawal and shares actionable strategies for leveraging supplier relationships and optimizing the cash conversion cycle to achieve self-funded growth and greater profitability.

Key takeaways

Themes

finance & fundraisingdtc strategysupply chain & operationsfounder & leadership

Topics covered

bootstrapping strategiesworking capital managementcash conversion cyclesupplier negotiationprofit marginsfinancial resilienceecommerce fundingfounder stories

Episode description

What happens when your bank promises you $20 million, strings you along for a year, and then rips it all away the same week you need it most?  Sean Frank (CEO, Ridge) and Matt Bertulli (CEO, Pela Case & Lomi) sit down with Curtis Matsko (CEO, Portland Leather Goods) for a raw conversation about how ecommerce brands fund growth.  Curtis shares one of the most gut-punch founder stories in Operators history. Wells Fargo promised him a $20–25M line of credit, demanded $2M back overnight, and nearly killed Portland Leather Goods at the exact moment he had ~$14M tied up in a brand expansion. He survived a year of not paying suppliers, negotiating week-to-week, and somehow came out more profitable than before. The three dig into the real math of affording growth without investors. Why it’s “impossible, but you have to do it anyway,” how supplier relationships are the single best source of working capital leverage, and why the cash conversion cycle will break your business if your margins aren’t right.  They close with one of the most important warnings for early operators — stop counting revenue, start counting what’s left. Powered By Fulfil https://bit.ly/3pAp2vu Saras Analytics https://bit.ly/9OP-YtdescAftersell https://9ops.co/4i3bb5Postscript https://9ops.co/postscriptRichpanel https://9ops.co/richpanelNorthbeam https://www.northbeam.io/Operators Newsletter https://9operators.com/

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Frequently asked about this episode

What does this episode say about finance & fundraising?
Prioritize supplier relationships as a critical source of working capital and negotiate favorable payment terms to extend cash conversion cycles.
What does this episode say about dtc strategy?
Shift focus from top-line revenue to net profitability, meticulously tracking "what’s left" after all expenses to understand true financial health.
What does this episode say about supply chain & operations?
Optimize your cash conversion cycle and maintain healthy profit margins; these are fundamental to sustainable growth and resilience against financial shocks.
What does this episode say about founder & leadership?
Build financial resiliency by stress-testing your business model against unexpected funding withdrawals and actively managing inventory to avoid tying up excessive capital.

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