5 Key Lessons on future-proofing, investment & exit for your business from Future Proof

Hi there,?

Our very first Tash Talks event, in partnership with ShipBob and Apex Projects was absolutely incredible! ??

We brought together some of the brightest minds in the industry to discuss fundraising, valuations, and M&A markets – and the energy in the room was unmatched.

? Expert insights from Unilever Ventures, Alantra Capital, and Apex Projects on navigating today’s market and preparing for 2025.

? Candid conversations about capital markets, brand valuations, and digital strategy, filled with actionable takeaways for every attendee.

? New friendships and collaborations, with a community built on support, advice, and mutual growth.

The e-commerce and brand landscape is evolving rapidly, and insights highlighted key trends, strategies, and challenges shaping the future of the sector

There were far more learnings from the evening than I can share in today’s newsletter, but don’t worry – we’ll be publishing replay videos of the event on my YouTube channel soon.

Here are five critical takeaways from industry experts on how brands and e-commerce teams can not only survive but thrive in a changing world.

1. Welcome to DTC 3.0

The D2C journey has evolved significantly over the past two decades, shifting through three distinct phases:

• D2C 1.0: Marked by an abundance of venture capital, brands prioritised aggressive scaling over profitability. Payroll costs were often as high as 20% of revenue, and many expanded prematurely into retail or other channels without sustainable business models. The result? Widespread closures and failed ventures.
• D2C 2.0: Starting around 2015, a leaner, more pragmatic approach emerged. Bootstrapped brands focused on profitability, smaller teams (12-15% of revenue), and controlled growth. Despite this, rising customer acquisition costs often eroded margins, testing the resilience of these tighter models.
• D2C 3.0: Today, asset-light models dominate. Brands like Kylie Jenner’s Cosmetics, which achieved $600M in revenue with just eight employees, exemplify this phase. Success now hinges on small, agile teams (6-8% payroll costs), outsourced operations, and the ability to adapt quickly to market shifts and new channels.

What this means for you

In an increasingly volatile landscape, lean and nimble structures are critical for survival and growth. To thrive in D2C 3.0:

• Minimise Fixed Costs: Avoid long leases or high payroll commitments.
• Outsource Operations: Leverage third-party logistics (e.g., ShipBob) to stay flexible and focus on growth.
• Embrace Agility: Be prepared to pivot quickly across platforms, geographies, and strategies as consumer behaviour and market conditions shift.

Ultimately, this asset-light approach allows brands to future-proof against challenges (which will always arise), from rising acquisition costs to unforeseen market disruptions.

2. Preparation and differentiation are essential for investors

For founders seeking investment or acquisition, two factors stood out:

• Preparation: Investors expect founders to have detailed knowledge of KPIs, market positioning, and growth plans. You only get one chance to make a strong impression, and preparation is the foundation of confidence and authenticity.
• Differentiation: With an abundance of brands in the market, standing out is crucial. Investors look for brands with unique consumer insights, authentic storytelling, clinical research, or other defensible differentiators.

Takeaway: Spend time developing your brand’s story, understanding your metrics, and preparing for in-depth discussions. Investors trust founders who show clarity and belief in their business model.

3. Scaling for corporate acquisition requires a new revenue benchmark

Acquisition by major corporates and multi-national consumer goods companies now requires brands to reach nearly ￡100M in revenue, up from ￡15M-￡20M a decade ago. This shift is driven by:

• The increased accessibility of digital channels, making smaller-scale success more common.
• Corporates focusing on fewer global power brands with strong equity and scalability potential.

Implications for founders

To scale and position for acquisition, founders must:

• Focus on long-term differentiation rather than short-term wins.
• Partner with strategic investors to support growth to the ￡100M milestone.
• Consider regional expansion and multichannel strategies to diversify revenue streams.

4. Nimbleness is critical in a volatile landscape

The volatility of platforms like TikTok underscores the importance of nimbleness. Of course, TikTok’s brief shutdown in the US was covered. This raised a critical question: What’s your next channel if TikTok disappears?

Strategies for Longevity:

• Be multichannel: Balance investments across platforms like Amazon, broad social channels retail, and B2B.
• Focus on international growth to hedge against regional risks.
• Build agility into your team and operations to respond quickly to emerging trends or shifts in the marketplace.

5. The Power of founder storytelling

Investors and consumers alike are drawn to brands with authentic stories. Founders who can articulate their passion, vision, and differentiation make a stronger impact.

As one of the speakers noted, founders who are overly formal or "polished" in meetings risk losing the personal connection that sets them apart.

What this means for you:

• Focus on crafting a clear, compelling narrative about your brand's mission and values.
• Let your authentic personality and passion shine through in meetings and public appearances.
• Build a personal brand alongside your business to amplify trust and connection with both investors and customers.

Future Proof offered invaluable insights for navigating a dynamic landscape.

By staying flexible, authentic, and prepared, brands can position themselves for lasting success.?

If you’d like to attend our next Future Proof event or discuss these strategies in more detail, feel free to DM me.

I’ll let everyone know when the event replays are on YouTube too.

And if you know anyone who would find this helpful, please forward this to them!

Have a great week!

Tash Courtenay-Smith