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Bonus: Preparing Your DTC Brand for Acquisition: Lessons on the PE Path from Because Ventures
Manage episode 479921888 series 2899866
Subscribe to DTC Newsletter - https://dtcnews.link/signup
In today’s DTC Podcast, we sit down with Jeremy Horowitz, founder of Because Ventures, a private equity firm laser-focused on acquiring and scaling DTC brands doing $10M–$100M in revenue. Jeremy shares why VC funding often damages DTC brands and how PE can provide a more sustainable growth path for founders.
https://www.linkedin.com/in/jeremyhorowitz1/
https://letsbuyabiz.xyz/subscribe
Key Topics Covered:
Why venture capital is usually a mismatch for DTC brands
How PE firms like Because Ventures evaluate acquisition targets
The #1 thing founders should do 6–12 months before selling
The role of clean SOPs and financials in maximizing valuation
How WhatsApp marketing (through their acquisition of Coco AI) is the next SMS in Europe
Big Idea:
VC is not designed for DTC brands; disciplined operations and a focus on profitable growth are the real success path.
Timestamps
00:00 - Top signals PE looks for when acquiring brands
02:00 - Jeremy's journey from agency to SaaS exits to PE
06:00 - What changed in the brand acquisition market since 2020
10:00 - Why VC isn't a great fit for DTC physical products
14:00 - The dangers of scaling too fast with venture capital
18:00 - How PE approaches growth differently from VC
20:00 - Key traits of brands that are acquisition-ready
24:00 - What founders should do 6–12 months before selling
28:00 - The importance of industry benchmarks and P&L metrics
30:00 - Inventory management, CAC payback, and repurchase rate
32:00 - Inside Because Ventures’ first acquisition: Coco.ai
Hashtags
#DTCgrowth #EcommerceAcquisition #PrivateEquity #FoundersJourney #VentureCapital #CocoAI #BrandExitStrategy #ShopifyApps #WhatsAppMarketing #CashFlowTips
Subscribe to DTC Newsletter - https://dtcnews.link/signup
Advertise on DTC - https://dtcnews.link/advertise
Work with Pilothouse - https://dtcnews.link/pilothouse
Follow us on Instagram & Twitter - @dtcnewsletter
Watch this interview on YouTube - https://dtcnews.link/video
600 episodes
Manage episode 479921888 series 2899866
Subscribe to DTC Newsletter - https://dtcnews.link/signup
In today’s DTC Podcast, we sit down with Jeremy Horowitz, founder of Because Ventures, a private equity firm laser-focused on acquiring and scaling DTC brands doing $10M–$100M in revenue. Jeremy shares why VC funding often damages DTC brands and how PE can provide a more sustainable growth path for founders.
https://www.linkedin.com/in/jeremyhorowitz1/
https://letsbuyabiz.xyz/subscribe
Key Topics Covered:
Why venture capital is usually a mismatch for DTC brands
How PE firms like Because Ventures evaluate acquisition targets
The #1 thing founders should do 6–12 months before selling
The role of clean SOPs and financials in maximizing valuation
How WhatsApp marketing (through their acquisition of Coco AI) is the next SMS in Europe
Big Idea:
VC is not designed for DTC brands; disciplined operations and a focus on profitable growth are the real success path.
Timestamps
00:00 - Top signals PE looks for when acquiring brands
02:00 - Jeremy's journey from agency to SaaS exits to PE
06:00 - What changed in the brand acquisition market since 2020
10:00 - Why VC isn't a great fit for DTC physical products
14:00 - The dangers of scaling too fast with venture capital
18:00 - How PE approaches growth differently from VC
20:00 - Key traits of brands that are acquisition-ready
24:00 - What founders should do 6–12 months before selling
28:00 - The importance of industry benchmarks and P&L metrics
30:00 - Inventory management, CAC payback, and repurchase rate
32:00 - Inside Because Ventures’ first acquisition: Coco.ai
Hashtags
#DTCgrowth #EcommerceAcquisition #PrivateEquity #FoundersJourney #VentureCapital #CocoAI #BrandExitStrategy #ShopifyApps #WhatsAppMarketing #CashFlowTips
Subscribe to DTC Newsletter - https://dtcnews.link/signup
Advertise on DTC - https://dtcnews.link/advertise
Work with Pilothouse - https://dtcnews.link/pilothouse
Follow us on Instagram & Twitter - @dtcnewsletter
Watch this interview on YouTube - https://dtcnews.link/video
600 episodes
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