Where top VCs invest in D2C


Don’t index the Casper mess too much. Investors say the sector is still strong

If you are looking for For toothbrushes, skin masks, mattresses, glasses or even socks, there are one or two digital native D2C companies (Direct-to-Consumer) that can help you.

And thanks to intelligent digital marketing, the resulting cult order and the economy of e-commerce, D2C has changed our relationship with consumer goods (and at the same time attracted a waterfall of investment funds).

According to Crunchbase data, D2C startups have raised more than $ 8-10 billion in known venture capital worldwide in more than 600 transactions since early 2019. The industry was catalyzed by a series of nine-figure deals for companies such as Glossier, which sells makeup products, and Ro, a telemedicine startup.

As we prepared this post for publication, our list of notable D2C rounds has become so long since early 2019 that we abandoned the idea of ​​digesting. The sector has been active in a variety of industries, making it difficult to summarize terms other than rounds and dollars invested.

However, these are lagging indicators of what is going on between D2C startups and their investors. TechCrunch was curious, especially after the restless Casper IPO, how investor sentiment might have changed and what venture capitalists are looking for in this category.

We caught up to get things under control Nicole Quinn of Lightspeed Venture partner, Ben Lerer and Caitlin Strandberg of Lesser Hippeau, Gareth Jefferies of North zone, Matthew Hartman of Betaworks Ventures, Alexis Ohanian of Initialized capital and Luca Bocchio of Accel.

We received advice for founders who want to think about whether influencer marketing is worthwhile and which channel, according to one investor, is an “almost closed door” for most D2C companies. We’ll start by summarizing the three trends that stand out the most from our responses, and then share the full investor statements.

Three key issues for D2C in 2020