"It's always darkest before the light and the pendulum for consumer is now swinging back, due to AI,"
"Everyone's moving away from consumer investing at the wrong time. It's classic loss aversion,"
"buy the dip"
Consumer tech investing declined over the past four years after the early-2020s VC boom and bust, which hit consumer startups particularly hard. Many investors shifted toward startups serving businesses with contract-based revenue and toward AI-driven enterprise opportunities. A small cohort of VCs is increasing bets on consumer startups, launching consumer-focused funds and seeking to "buy the dip" while many others avoid the category. New consumer funds such as Premise, Hobart Ventures, and Parable have launched, and established firms like Menlo, Maveron, and Bessemer continue placing consumer bets. Consumer-focused fund closings fell to about $9 billion in 2024 from $65 billion in 2021, and consumer startups on Carta raised 47% less cash in Q1 2025.
Read at Business Insider
Unable to calculate read time
Collection
[
|
...
]