To secure funding in 2023, e-commerce operators need to demonstrate capital efficiency, a clear path to profitability, and strong unit economics. Investors are prioritizing resilient business models over hyper-growth, seeking brands with defensible competitive advantages and a deep understanding of their target market. Founders must articulate a compelling vision, showcase operational excellence, and align with investor expectations for sustainable long-term value creation.
Key takeaways
Investors like Forerunner are still actively looking for strong e-commerce businesses; focus on robust unit economics and a clear path to profitability over pure top-line growth to impress them.
Understand that venture capitalists are scrutinizing capital efficiency more than ever; be prepared to articulate how your business utilizes capital effectively and minimizes burn.
Highlight your brand's unique value proposition and how it creates a 'moat' against competitors, as investors are keen on defensible business models and strong brand narratives.
Be transparent about your customer acquisition costs (CAC) and customer lifetime value (CLTV), demonstrating a healthy and sustainable customer growth strategy.
Practice your pitch to clearly communicate your business's resilience in challenging economic climates and your team's ability to execute on your strategic vision.
In part 2 of our two-part series on investing, Taylor talks with Jason Bornstein, Principal at Forerunner, the San Francisco-based venture capital firm behind DTC juggernauts like Away, Warby Parker, and Glossier. Listen as Jason breaks down current industry trends, the kinds of businesses he’s still excited about in 2023, and how to impress him on a pitch call.
Show Notes: Have a business you want to pitch to Forerunner? As Jason mentioned on the pod, Forerunner responds to every inquiry email. Reach out to them here: https://bit.ly/3HhW4GM Need help building your marketing calendar? Our strategy team is putting together 12-month gameplan and audit packages here: https://bit.ly/3ZLKfjw The Ecommerce Playbook mailbag is open — email us at podcast@commonthreadco.com to ask us any questions you might have about the world of ecomm.
What does this episode say about finance & fundraising?
Investors like Forerunner are still actively looking for strong e-commerce businesses; focus on robust unit economics and a clear path to profitability over pure top-line growth to impress them.
What does this episode say about founder & leadership?
Understand that venture capitalists are scrutinizing capital efficiency more than ever; be prepared to articulate how your business utilizes capital effectively and minimizes burn.
What does this episode say about dtc strategy?
Highlight your brand's unique value proposition and how it creates a 'moat' against competitors, as investors are keen on defensible business models and strong brand narratives.
What does this episode say about finance & fundraising?
Be transparent about your customer acquisition costs (CAC) and customer lifetime value (CLTV), demonstrating a healthy and sustainable customer growth strategy.
What does this episode say about finance & fundraising?
Practice your pitch to clearly communicate your business's resilience in challenging economic climates and your team's ability to execute on your strategic vision.
