""Skims speaks to the power of a consumer product that resonates with a lot of people," said Shamin Walsh, BAM Ventures managing director, via email. "This is entirely different from the old direct-to-consumer days where they're buying revenue. Skims has clearly cracked a formula. If they are profitable and producing that much revenue, then it actually seems like a reasonable multiple based on the strength of the brand and the way they're expanding.""
"Outside of Skims, good news in the consumer business was, for a while, hard to come by. The DTC boom led to companies like Glossier snagging soaring valuations they couldn't live up to, and it became clear that venture-backed consumer businesses couldn't play by software rules. So, VCs and LPs pushed aside consumer deals for a while. ( Silicon Valley Bank analysis shows that consumer-focused VC funds closed $65 billion in 2021, and by 2024 hit only $9 billion, a seven-year bottom.)"
Skims combines aspirational marketing and sleek accessibility in pricing and sizing to generate strong consumer demand and cultural relevance. The brand raised $225 million at a $5 billion valuation and projects more than $1 billion in net sales by the end of 2025. Observers note that profitability paired with substantial revenue supports Skims' valuation multiple due to brand strength and expansion. The broader DTC market faced valuation corrections after the boom, causing investor caution and a decline in consumer-focused VC funding from $65 billion in 2021 to $9 billion by 2024. Skims represents a successful consumer-product scaling case within that context.
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