Consumer Takes All Part 2: My Investment Philosophy
Allow me to introduce the Consumer Quartet.
This is part two of my three-part Consumer Takes All Series. See part one here and part three here.
At the start of each year, I like to consider which types of companies will be the ultimate winners –publicly traded companies six to 10 years post-launch– of the future. I then spend the rest of the year focusing all of my time connecting with and supporting the founders and consumers within those categories. This series outlines where I’ll be investing my time and capital in 2024.
The next multi-billion dollar consumer companies will allow consumers to achieve at least one of the following:
A rich, utilitarian life beyond screens (decline of the attention economy)
The ability to gain more knowledge and learn new skills in cheaper and more flexible ways (education, upskilling, reskilling)
More efficient and delightful connections with one another (consumer social)
If you’re a consumer founder, I’d love to chat. Reach out at tcburning@gmail.com or DM me @tcburning.
In 2024 and beyond, you have to look beyond the obvious places for consumers –outside of Stanford, on strange corners of the internet, sometimes outside of tech entirely– which most VCs get wrong.
My consumer investment philosophy, derived from years of early-stage consumer investing, consists of a four-step recipe I call the Consumer Quartet. Without all four ingredients (or the belief that they can exist in relatively short order), I don’t have the conviction to invest in a company:
Ravenous adoption/utility within a niche community
The early adopters, usually hidden from public view in the earliest days, will pave the way. Finding the obsessive, cult-like adoption within a space requires getting into niche spaces that are hard to find (or create) early on. In 2024 and beyond, you have to look beyond the obvious places for consumers –outside of Stanford, on strange corners of the internet, sometimes outside of tech entirely– which most VCs get wrong.
Platform-native superstars
Superstars are popular users that give the broader community entertainment, education, and/or inspiration. The superstars (which can be people, pages, groups, etc) create product strongholds that act as glue as a product scales.
Interaction and value generation in the real world
As we discovered with Peak Screen Time (see part one), software that enhances the way you physically live, will win every time.
Strong founder who understands all of the above.
Full stop.
If you’re a consumer founder —especially if your company checks all of the Consumer Quartet boxes— I’d love to chat. Reach out at tcburning@gmail.com or DM me @tcburning.