TLDR:
- Melissa Facchina, Co-Managing Partner of Siddhi Capital, offers practical advice for entrepreneurs in CPG investing.
- Siddhi Capital is unique in its structure, founded as a joint venture between Siddhi Ops and a family office.
Unlike many traditional investors in Venture Capital and Private Equity, Melissa Facchina, Co-Managing Partner of Siddhi Capital, comes from an operations background in the food and beverages industry. Siddhi Capital, a joint venture between Siddhi Ops and a family office led by the co-founding partners Steven and Brian Finn, focuses on CPG investing. The in-house team is made up of two-thirds operators and one-third investors, setting Siddhi Capital apart from typical structures in the industry. The transition from operating firm to private equity has been a complex journey, navigating the challenges of minority investing and the need to balance operational expertise with financial capital.
Facchina emphasizes the importance of operational diligence in CPG investing, advising entrepreneurs to focus on establishing appropriate milestones and engaging in conversations about co-manufacturing early on. The current landscape of CPG investing has shifted from a growth-at-all-cost model to a focus on financial stability and profitability. Entrepreneurs must be prepared for a long growth horizon, with successful ventures often taking 15 to 20 years to reach fruition. By understanding the financial landscape and focusing on sustainability, founders can position themselves for success in the evolving reality of CPG investing.
