Most investing markets are relatively efficient. Early stage consumer and retail private equity markets are not. Consider this:
- The United States is the href=”http://selectusa.commerce.gov/industry-snapshots/consumer-goods-industry-united-states.html”>largest consumer goods market in the world – worth more than $400 billion. Consumer and retail accounts for roughly 20% of the US economy.
- The sector is going through a major disruption creating incredible tailwinds. Millennials, on the brink of becoming the largest segment of the population, are driving purchasing decisions – href=”http://www.forbes.com/sites/ryancaldbeck/2015/05/19/as-young-startup-brands-flourish-innovation-at-large-consumer-companies-is-flatlining/?utm_source=followingimmediate&utm_medium=email&utm_campaign=20150519″>demanding more personalized products. Innovative small brands are emerging almost daily to lead the way in what I’m calling the Personalization of Consumer. The emerging brands ($1-10M in revenue) are stealing market share from the big packaged goods companies that have been slow to adapt.
- Investors in consumer products realized 3.6 times their investment in an average of 4.4 years, according to href=”http://sites.kauffman.org/aipp/index.cfm”>the Angel Investment Performance Project (AIPP) from the Kauffman Foundation.
Originally posted on Forbes.com | By Ryan Caldbeck