20VC: Why Brands Can Have The Same Revenue Multiples As Enterprise Companies & The Right Way To Think About Amazon In Today’s World of Commerce with Eurie Kim, General Partner @ Forerunner Ventures
Eurie Kim is a General Partner @ Forerunner Ventures, the early stage firm dedicated to investing in entrepreneurs defining the next generation of commerce. Fun fact, they are the only firm to have investments in both Jet.com and Dollar Shave Club, two of the biggest and highest-profile e-commerce exits in recent years. Forerunner also counts Birchbox, Bonobos, Glossier, Hotel Tonight, Warby Parker and Zola among its portfolio companies. Prior to Forerunner, Eurie was a consultant at Bain and before that an investor at Castanea Partners. Eurie currently sits on the boards of companies such as Away, MoveWith and The Farmers Dog, just to name a few.
In Today’s Episode You Will Learn:
1.) How Eurie made her into the world of VC and investing in the next generation of commerce with Forerunner?
2.) How does Eurie look to argue that commerce deals do attain the same revenue multiple on exit as enterprise deals? Do Forerunner think about exit potential when investing in companies? How does this Eurie’s thesis on both ownership and price sensitivity? What are the required fund-returning ownership levels today?
3.) With the time it takes for brands to flourish, how does Forerunner think about reserve allocation? How does Forerunner determine which companies to double down on and which to constrain capital? Why does Eurie believe that it takes less time than ever for brands to flourish today? What is a good example of this?
4.) How does Eurie define the term “digitally native vertically integrated brand”? What are the core components that make those all star brands of today shine in the early days? What are the commonalities in those successful founders that build these mega brands?
5.) Given the rise of some prominent new brands eating incumbent market share, does Eurie believe this is a market of consolidation or new incumbents will be made? How does Eurie view the role of Amazon? To what extent does Eurie observe and analyse Amazon’s activity?
Items Mentioned In Today’s Show:
Eurie’s Fave Book: Blue Ocean Strategy
Eurie’s Fave Blog: Business of Fashion
Eurie’s Most Recent Investment: Shop Shops
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