Venture Investing In Consumer And Retail: Why It’s Rare, And Why It’s About To Change

Most investing markets are relatively efficient.  Early stage consumer and retail private equity markets are not. Consider this:

  • The United States is the 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 – 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 the Angel Investment Performance Project (AIPP) from the Kauffman Foundation.

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Originally posted on Forbes.com | By Ryan Caldbeck

2017-05-23T11:36:47-06:00 June 17th, 2015|

About the Author:

The Wayne Brown Institute was founded by the late Dr. Wayne Brown in 1983. Dr. Brown held positions in mechanical engineering and served as Dean of the College of Engineering at the University of Utah. In addition to his academic postings, he was a founder of Kenway Engineering (HK Systems), TerraTek, NPI (Agridyne Technologies), the Utah Innovation Center (the world’s first venture accelerator/incubator) and Utah Ventures (now Pelion Partners, Utah’s first and largest venture fund). By virtue of his academic, government, and business background, Dr. Brown was a leading authority in technological innovation and entrepreneurship. Many of the world’s science/research parks, innovation centers, and incubators have their roots with Dr. Brown. In addition to his many accomplishments, he has affected the role of government in innovation and entrepreneurship as the architect with Roland Tibbitts of the national Small Business Innovation Research (SBIR) program. Later, as head of the State’s Science Council he spearheaded legislation to create the Utah Technology Finance Corporation (UTFC, now Innoventures), and Utah’s Centers of Excellence program. He successfully negotiated with the U. S. government to obtain military land for the establishment of the University of Utah’s Research Park, and key in the establishment of the USU Research Park and Timpanogos technology Park in Orem (Novell campus). His knowledge, experience and passion live on in the Wayne Brown Institute, its staff, its investor-led Board, and its countless supporters.