Capvisory Insights
Consumer Startups
Consumer VC: What are the key investment ideas of leading investors? (2025)
The specialized Berlin-based M&A boutique Capvisory supports startups in Seed and Series A funding rounds as well as in exit processes. In this content piece, we share our perspective on the current fundraising climate in the consumer segment.
Founding Partner
Founding Partner
This is the second part (2/2) of our deep dive into the consumer sector. In our first piece, we explored how consumer startups have struggled to attract venture capital (VC) investors since interest rates began rising in late 2021. Despite this shift, some investors remain active – our list features over 30 consumer-focused VCs in 2025.
Now, we’re diving into their investment theses: Why are these investors still betting on the consumer sector, even as the market moves away from it and many VCs have dropped consumer investments from their focus areas?
Sidebar: Why is Capvisory so focused on the consumer sector?
As an M&A advisor specializing in fundraising and exits for tech startups, we continue to see significant potential in the consumer sector. Despite current challenges, we remain optimistic, committed to expanding our engagement in this space, and dedicated to actively connecting investors with founders.
1. The Consumer Sector: A Rollercoaster Ride
Investor enthusiasm for consumer investments has always fluctuated. Macroeconomic factors have often triggered periods of decline and premature obituaries, only for venture capital to return, driven by technological advancements or radical shifts in consumer behavior.
Looking back over the past 30 years, we see that each wave of major disruptive B2C companies has been fueled by new innovation cycles. In the 2000s, the internet propelled the rise of tech giants like Google and Facebook. Around 2010, the cloud revolution paved the way for consumer market leaders such as Netflix (streaming since 2007), Spotify, and Twitch. At the same time, evolving consumer habits led to the surge of marketplace platforms and sharing economy models like Airbnb, Uber, and DoorDash.
In more traditional consumer categories like fashion, food, and cosmetics, technological innovation played a smaller role. Instead, new go-to-market strategies revolutionized access to end customers – from the early days of online marketing in the early 2010s to the Direct-to-Consumer (DTC) boom from 2015 and the rise of influencer marketing starting in 2016.
By 2021, many consumer businesses had reached all-time highs in both valuation and revenue. Even unprofitable consumer startups (like the German food delivery service Gorillas) achieved unicorn status (valuations exceeding €1 billion) and secured massive funding within just a year of launch. In hindsight, a wild ride!
Since interest rates began rising and the so-called “E-Commerce Winter” set in, consumer startups have faced much tougher conditions. Many founders report that venture capital now seems to favor B2B models over consumer-focused businesses.
The data backs up these observations: At the end of 2023, Carta reported that only 7% of seed-stage funding went to consumer startups – the lowest share since 2018. In 2024, SVB followed up with data showing that among the 100 most active VC firms, consumer investments accounted for just 6% – half of what they were two years prior. Even at the earliest stages, the trend is evident: The Y Combinator W24 batch featured noticeably few consumer startups.
However, unlike previous “consumer crises” such as the 2008 financial crisis, today’s macroeconomic data presents a more nuanced and resilient picture of consumer health than investors or consumers themselves might perceive. Here’s a study from the Federal Reserve on U.S. household financial self-assessment:
This relative consumer stability, combined with the fact that many of the world’s largest startups follow B2C models, explains why professional investors continue to bet on the consumer market. What these investors likely also recognize: According to PitchBook data, the total value of the five largest consumer exits between 1995 and 2022 was 2.3 times higher than that of enterprise companies.
2. The Investment Theses of Active Consumer VCs
We spoke with investors in Europe and the U.S. to understand their perspectives on the consumer sector. Below, we outline six key theses that can provide founders with guidance and highlight which themes are particularly promising for venture capital funding.
Thesis 1: “Experiences Over Material Possessions” – Robert Kusche, Best Nights VC
Corporate Venture Capital of Mast-Jägermeister SE, investing in media, entertainment, and nightlife consumer startups.
Senior Investment Manager Robert Kusche from Best Nights VC, a Berlin-based Corporate Venture Capital fund (CVC) backed by Jägermeister, shared insights into their core investment thesis: Consumers today increasingly crave unforgettable experiences over material possessions.
Best Nights VC invests in consumer startups shaping the future of nightlife and entertainment—especially those that bring people together in real life. A great example is their portfolio company Thursdays, which reimagines traditional dating app functionality by focusing on bringing people together specifically on Thursdays.
→ Are you building the next community, gathering, or social startup? Then you should definitely reach out to Robert at Best Nights VC!
At Capvisory, we share the belief that demand for extraordinary experiences and memorable moments is rapidly growing – from immersive events and personalized travel offerings to interactive shopping formats. Younger consumers, in particular, are increasingly prioritizing unique experiences over material goods.
Studies and leading trend researchers back this shift with concrete data: 52% of Gen Z respondents in a McKinsey survey stated that they prefer to spend more on experiences, compared to just 29% of Baby Boomers.
Thesis 2: Artificial Intelligence is Driving the Next Big Technological Shift in Consumer Tech – Matthew Chandler, Octopus Ventures
London-based VC fund with three core focus areas: a sustainable planet, empowering people, and revitalizing healthcare.
Artificial intelligence is currently everywhere, but at startup conferences, the focus seems often on B2B models only. However, Matthew Chandler from UK-based investor Octopus Ventures sees a massive opportunity in consumer tech. He believes that AI-driven innovation could fuel the next wave of consumer unicorns, and that the early years of this technology will be crucial in determining who comes out on top.
Octopus Ventures invests across various verticals, including Consumer, Deep Tech, and Health, all under a common mission: “Putting people, community, and the environment first.”
→ Are you building a consumer startup leveraging AI to create something truly groundbreaking? Then reach out to Matthew!
At Capvisory, we share the excitement for AI’s potential in the consumer space. From AI-powered shopping assistants and self-driving cars to smart home devices with adaptive user experiences—this technology is enabling entirely new product interactions.
From a business perspective, AI offers significant advantages: scalability, high margins, and hyper-personalization—key drivers for the consumer brands of the future. Major CPG and retail corporations recognize this shift as well: 42% of retail and CPG companies are already leveraging AI technology, while another 34% are in the testing or implementation phase.
Thesis 3: Compelling Entry Valuations and Strong Exit Opportunities – Julie Roze, Korelya Brands
Part of Korelya Capital, a Paris-based early-stage VC that provides financing and access to Asian markets, with prominent B2C portfolio brands.
The cautious stance of many VCs toward the consumer sector is reshuffling the deck. Consumer founders now have fewer funding options and must accept significantly less favorable terms compared to 2021. However, this creates an attractive opportunity for long-term-oriented investors: lower valuations and reduced competition for funding rounds make for compelling entry points.
This is the perspective of Julie Roze from French VC Korelya Brands (part of Korelya Capital). While consumer startups are struggling with low valuations during fundraising, established legacy brands face growth challenges. This dynamic opens the door for well-positioned challenger brands – companies that can be invested in at a relatively low cost and ultimately become attractive acquisition targets for major players.
→ Are you a European consumer challenger brand in sectors like beauty, health, wellness, or sportswear with strong growth potential? Then reach out to Julie!
At Capvisory, we are closely monitoring this shift. Valuations for consumer startups have dropped significantly since 2021, and we regularly speak with founders who, despite strong numbers, are facing tougher funding conditions. Growth alone is no longer enough, especially in the consumer sector, where even early-stage investors are now placing greater emphasis on profitable growth.
However, founders who know the right investors, understand their investment thesis, and recognize which key metrics matter can still close successful funding rounds.
Thesis 4: Longevity, Consumer Life Science & Health
US-based VC focused on consumer health, and consumer goods, investing in Pre-Seed and Seed-stage rounds.
What is the one universal human desire? Health. Even in the wealthiest regions of the world, no one is immune to illness.
The market for longevity, wellness, biohacking, and personalized health solutions is growing exponentially. According to the McKinsey Future of Wellness Report, which surveyed over 5,000 consumers worldwide, Millennials and Gen Z are spending significantly more on health and wellness than older generations.
Specialized VCs like LongeVC and NaturalX focus explicitly on this space, while more broad-based consumer VCs such as Joyance Partners are also doubling down on the trend.
Investment Partner Jun Deng from Joyance Partners emphasizes that the future of health lies in preventive, personalized, and emotionally engaging solutions. According to Deng, people are increasingly prioritizing overall well-being, beyond just physical health, extending to mental and emotional wellness. This perspective shapes Joyance Partners’ investment approach, which focuses on four key pillars: sleep, food, exercise, and mood (More to find here). Jun Deng further explains:
“Regardless of funding challenges, we at Joyance continue to see healthcare as an essential and value-creating investment area. We seek startups solving significant unmet healthcare needs with innovative and highly impactful solutions with clear paths to product-market fit.”
→ Are you building at the intersection of consumer and health? Does your solution help people live healthier, happier lives? Then you should definitely connect with Jun Deng from Joyance Partners!
At Capvisory, we firmly believe that consumer health is one of the most exciting growth markets. According to Joyance Partners’ research, U.S. healthcare spending alone reached $4.3 trillion in 2021 and is projected to rise to $6.2 trillion by 2028. Increasing consumer responsibility for personal health and rapid technological advancements create enormous opportunities for founders. 70% of consumers are willing to spend more on preventive health solutions—a clear trend that investors are increasingly recognizing and actively supporting.
Thesis 5: Age of Personalization
Early-stage consumer-only VC with a special interest in how people live, work, learn, play, eat, and stay healthy.
Mass-produced consumer products are losing appeal, while highly personalized solutions are booming. Examples include customized supplements, individualized fashion, and context-aware beauty products.
This is the core thesis of consumer-only VC firm Maveron. According to Maveron, the next wave in the consumer market will be shaped by the “Age of Personalization.” Consumers increasingly expect tailor-made experiences, ranging from personalized nutrient blends and curated fashion recommendations to AI-generated media content that perfectly matches their preferences.
Maveron investors Natalie Dillon and Simran Suri emphasize that technological advancements, particularly in artificial intelligence, are enabling an unprecedented level of consumer behavior analysis. Data is no longer just a byproduct of digital interactions—it is the key driver behind personalized services. Companies that leverage this potential effectively can build deep customer loyalty and unlock entirely new markets.
Maveron actively invests in consumer startups pioneering this transformation. The fund believes that massive value creation opportunities will emerge in the coming years, driven by evolving consumer expectations, technological breakthroughs, and macroeconomic shifts.
→ Are you building a consumer startup centered on personalization? Then connect with Natalie Dillon and Simran Suri from Maveron!
These 6: Community-Driven Growth
Seed-stage VC focusing on European software startups with a consumer or community component.
Over the past 20 years, the go-to-market playbook for consumer-facing ventures has continuously evolved, with notable milestones such as Meta Ads, content marketing, and influencer marketing. Now, a new buzzword is dominating the conversation: “Community Growth.”
The VC investor Trind, based in Estonia with offices in Tallinn, Helsinki, and Munich, has embraced this thesis and actively invests in consumer startups with a strong community component.
Reima Linnanvirta, Partner at Trind Ventures in Helsinki, explains:
“If you build your startup on the elements of a large audience, short sales cycles, growing purchases, and low churn & high retention, you are well on your way to creating a startup that will outperform your competition.”
While sales-led business models often struggle to maintain even linear growth, community-driven models enable exponential growth—once product-market fit is achieved.
Additionally, traditional influencer marketing is losing effectiveness: 45% of 13- to 22-year-olds no longer trust influencers as they once did, while 53% now place greater trust in recommendations from everyday users.
A compelling real-world example? Berlin-based soft drink brand Holy. While their product is certainly solid, it is not a technological innovation. However, what Holy excels at is leveraging community-building as a growth driver, and that is what makes the difference.
Conclusion: Opportunities for Consumer Startups in 2025
Even in 2025, the market environment for consumer founders remains challenging, but there are dynamic segments with great potential. Despite difficult conditions, opportunities arise for founders who are aware of VC concerns, act counter-cyclically, and focus on sustainable, scalable, and profitable business models.
As clearly demonstrated by the VCs mentioned above: AI, health, challenger brands with exit potential, personalization, community growth, and unique consumer experiences are in demand. Those who clearly differentiate themselves in these areas can successfully position themselves and secure funding even in a tough market environment.
Which consumer trends do you see for 2025? Write to us or connect with us!
Capvisory is an independent, founder-led advisory boutique specializing in fundraising, sell-side M&A, and buy-side M&A for fast-growing tech companies and their investors.
