If youโre a drinks founder attempting to raise VC capital, youโre not just competing with other beverage companiesโyouโre competing with the AI wave. ๐๐ค
Between 2009 and 2021, investors were pouring capital into CPG companies. That was the past.
Venture capital funding has rapidly consolidated around AI and deep-tech. Funding for non-AI consumer sectors has seen a sharp decline, with early-stage CPG VC funding down 60% by late 2023 compared to the 2021 peak, per PitchBook.
๐ VCs are chasing the higher margins and scalability of software. ๐
This shift means two things for beverage startups:
๐๐๐ป๐ฑ๐ฟ๐ฎ๐ถ๐๐ถ๐ป๐ด ๐ถ๐ ๐ง๐ผ๐๐ด๐ต๐ฒ๐ฟ: The bar for traditional CPG is much higher than it once was. VCs now demand a clearer path to profitability and exceptional unit economics. ๐ฐ
๐๐ ๐ถ๐ ๐ก๐ผ๐ ๐๐ต๐ฒ ๐๐ป๐ฒ๐บ๐: Strategically employing tech can give your company a leg up. Are you using AI for hyper-personalized marketing, predictive trend spotting, or supply chain efficiency? ๐ง ๐
Standing out amongst other spirits, non-alc, functional beverage, and beyond isnโt enough. You need to stand out amongst a sea of other investment opportunities. โจ