Consumer venture capital has weathered multiple market shifts in recent years and is positioned to continue as a force in the venture ecosystem. Though individual consumers may face challenges in the current economic environment, consumer brands will almost invariably stay in demand. Low consumer activity and high consumer company performance might seem to be at odds, but they’re not as implausible if we broaden our definition of consumer goods.
While it’s true that people may spend less on luxury goods and non-essentials during periods of economic uncertainty, they still continue to generate business for products and services like food brands and free mobile apps. These may not be our first association when we think of consumer products, but they are a relative constant in a market that is otherwise always in flux.
Consumer venture capital definition
Consumer venture capital is a subset of VC that targets consumer-focused companies and deals. As such, its investors pursue opportunities in the business-to-consumer (B2C) space rather than those relating to business-to-business (B2B). Though the name may conjure images of individual investors allocating funds, consumer VC is largely carried out by consumer venture capital firms.
Consumer venture capital vs corporate venture capital
Given their shared involvement in the venture market and similar nomenclature, some may want to draw comparisons between corporate and consumer venture capital—but in practice, this is an apples to oranges comparison. The difference between corporate and consumer venture capital is not simple as B2B versus B2C investments, since their classifications identify fundamentally different traits. As previously stated, consumer venture capital describes a VC firm that invests in consumer products, while corporate venture capital describes a VC firm funded and operated by a corporation. When placed side by side, we see that the former is a classification based on investing behavior and preferred industries, while the latter is a classification based on investor type.
To further separate these two types of firms, we can also look at how each of their funds operates. Consumer venture capital firms collect funds from LPs, which they then deploy towards their target B2C investments, while corporate VC sidesteps the need for fundraising or LPs since they operate using their own capital.
Consumer venture capital firm examples
The following are some examples of consumer venture capital firms tracked on PitchBook. Though this is not a formal designation on the platform, it is easy to find consumer venture capital firms based on their activity pertaining to B2C investments.
Maveron
Founded: 1998
Investments: 397
AUM: $1.4B
Based in Seattle, Maveron is a consumer VC firm with an emphasis on early stage investments. Some of their preferred industries include health and wellness, rideshares, fashion, and entertainment. Maveron recently invested in Bend Health, a mental health service provider that treats children and teens with a data-driven technology platform.
Consumer Ventures
Founded: 2017
Investments: 39
AUM: N/A
Consumer Ventures is a Chicago-based VC firm that invests in consumer goods and technologies. Their main areas of focus include industries like food and beverages, apparel, kids products, and pet products. Consumer Ventures recently invested in CurlMix, a hair care product company directed at consumers with curly hair.
Alumni Ventures
Founded: 2014
Investments: 1,470
AUM: $1B
Founded in Manchester, New Hampshire, Alumni Ventures is a VC firm with an emphasis on assisting individual investors. They cover a variety of sectors and industries, including e-commerce, beauty, and gaming. Alumni Ventures recently invested in Nimble Science, a pharmaceuticals company that treats intestinal ailments and developed an ingestible small intestine health tracker.
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