TLDR:
Investors at the Natural Products Expo West discuss the state of funding for CPG startups, highlighting the importance of profitability and the potential for investment from large CPG companies in the future.
Article Summary:
At the Natural Products Expo West, investors discussed the state of funding for CPG startups, emphasizing the following key points:
- Many startups have shifted their strategies towards profitability rather than growth at all costs, requiring a balance between growth and sustainability.
- AI technologies may provide opportunities for startups to save money and deploy capital more efficiently in the future.
Investors also highlighted the importance of profitability when it comes to exiting the market through an acquisition, as companies need to show that they can work at a certain margin to be attractive to potential buyers.
The funding environment is currently challenging, with lower multiples and higher interest rates, requiring startups to be realistic about their valuations and the potential for future investment.
Overall, the investors see a positive outlook for CPG startups, with large CPG companies likely to seek out relevant brands for acquisition in the near future.
