It may be to help launch at a national retailer, help fund an important production run, or invest in a round that is open then needing to get some first money in. We're also looking to write checks that are earmarked for targeted investments with specific and directed use of proceeds. We have good insight into the companies, capabilities, and limitations of the founders. One is because we have a deep relationship with the brands in our community. Let me talk about the fund itself and a couple of differences that are important to point out. It’s to give those entrepreneurs who are trying to make good shit happen the opportunity to bridge that gap to cross that chasm. Together, our goal is to work to empower those on the front lines of human health, climate action, justice, equity, diversity, and inclusion. It also includes our dedicated LPs, industry champions, venture partners' funds, and other angels. Our venture community consists of the amazing entrepreneurs who are part of our TIG Brands Community. We have launched a venture community.Ī venture community is a different approach to venture capital. All of this in mind, it kept coming back and back to the fact that if you look at this and the growing funding gap and the Angel fatigue in the space, and yet all of these great brands coming in, that creates a white space for a nimble fund attached to our TIG Brands Community. This early Angel money is so vital for promising brands. Many of them have decided to stop writing smaller checks and make a few bigger investments. Even if you're trying to vote from your gut and heart, you still have to do the due diligence.
They lack the time and the bandwidth to do the necessary due diligence. I've talked to a few that are seen as many as 100 a month. Active Angels in this space are overwhelmed by investment inquiries. The other thing is it's pushing so much volume against the Angels out there. That creates a funding gap and that funding gap kills promising brands. What that means is that if you're an emerging brand, you have to get further in order to get to that institutional money than you've ever had to get before. It's awesome, but the big fund economics require bigger checks and bigger checks require more mature brands. That speaks to the success of our industry. Our VC funds in the industry have gotten bigger. One of those is this growing funding gap. It's often that they're charting the wrong course and don't have the necessary capital that they need, and many other reasons. It doesn't mean that 80% to 90% of them are crap products or poor founders. You can look at 1 million different studies, but somewhere in the last several years, something between $18 billion and $20 billion in market share moved from the top 25 CPG companies to emerging brands.Īn estimated 80% to 90% of those brands fail within the first two years. I want to go into some depth about what and why this is. I want to talk about two important and critical new initiatives that we have undertaken. I always take a left turn when life puts that in front of me. We're going to do something a little bit different. Empowering The TIG Brands Community: TIG Venture Community And The TIG Collectives With Elliot Begoun
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