Direct-to-Consumer

In a conservative investment environment, the few start-ups that can access traditional venture capital are opting to take out loans, and battle higher interest rates, to fund business essentials like marketing and inventory.

All that cash might be tempting, but the motivations of founders and venture investors are rarely aligned, writes Imran Amed.

The underwear start-up was once pegged as Gen-Z’s answer to Victoria’s Secret. But investors, executives and founder Cami Téllez couldn’t agree on whether to prioritise growth or profitability. They ended up with the worst of both worlds.

Timepiece start-ups like Baltic, which went from Kickstarter campaign to producing $50K collector grade watches, and Christopher Ward, who is on track to reach $40 million in sales this year, are leveraging collector communities and innovation to take on high luxury watchmaking.

Warby Parker’s continued brick-and-mortar expansion has given two of its less recognisable digitally-native peers — Zenni Optical and Eyebuydirect — a chance to raise their profiles among online shoppers.

Cautious investors are finding safer bets in tech-focused platforms that create products for digitally-native brands over traditional DTC start-ups.

The Gen-Z intimates brand’s sale to a little-known strategic is the latest in an ongoing series of less than desirable exits for unprofitable digitally-native start-ups.

Brands like Warby Parker, Allbirds and Olaplex have successfully slashed digital advertising costs. Now they need to figure out new ways to find customers.

True Classic has emerged from a sea of men’s brands promising the perfect t-shirt, managing to build a big audience without bleeding cash.

The co-founder and chief innovation officer of the Nasdaq-listed sneaker brand reflects on how his time as a professional footballer prepared him to lead a business through the highs and the lows.

Facing a competitive landscape and unreliable online shoppers, brands can no longer rely on a traditional points-based offering to drive repeat purchases.

Some digitally native start-ups are buying or building factories to cut production times and control quality. But not every company is built to handle manufacturing themselves.