INVESTORS FROM THE DTX COMPANY, FORERUNNER, GREYCROFT, AND OTHERS NAME DIRECT-TO-CONSUMER STARTUPS THAT WILL TAKE OFF IN 2020

Via Business Insider

8Greens

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8Greens

Company: 8Greens

Recommended by: Neda Daneshzadeh, partner, Prelude Growth Partners

Relationship to the company: Investor

What it is: 
A health supplement company that makes effervescent tablets, gummies, and other products from blended greens like spinach and kale.

Why it’s hot: “87% of Americans do not get their daily minimum requirement of greens. 8Greens is made from real greens, has zero sugar and just 15 calories,” Daneshzadeh said. “It’s a female-founded business, and is led by CEO Eduardo Luz, the former president of grocery and chief brand officer at Kraft Heinz.”

Blueland

Blueland Clean Essentials

Blueland

Company: Blueland

Recommended by: Nisha Dua, general partner, BBG Ventures

Relationship to the company: Seed investor

What it is: Household cleaning company with a mission to reduce single-use plastic consumption.

Why it’s hot: “Sustainable consumerism is on the rise, but consumers still value price and quality above all else. Blueland has tapped into this with a cost-effective product that’s as efficacious as existing products on the market,” said Dua. “They aren’t just marketing themselves as a sustainable brand or refilling bottles, but have invented an entirely new form factor with their tablets — something the large incumbents have yet to do. All you need to do is add water and the Blueland tablet to the bottle.”

Choosy

Choosy
Choosy shows its fashions on its Instagram page.
Choosy

Company: Choosy

Recommended by: Charlotte Ross, principal, Inspired Capital

Relationship to the company: Investor

What it is: A fashion brand that creates algorithmically inspired outfits by scraping trending posts on Instagram.

Why it’s hot: “Choosy represents the future of fashion — it’s able to predict the latest trends with AI and machine learning technology, which have been proven to perform better than human-created styles,” said Ross. “Its proprietary supply chain also enables it to create clothes made-to-order, preventing the extreme waste that the fashion industry is known for.”

Co Star

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Co Star

Company: Co Star

Recommended by: Anarghya Vardhana, partner, Maveron

Relationship to the company: Investor

What it is: An astrology based social app.

Why it’s hot: “People are increasingly looking for meaning, purpose, and connection in life. In an increasingly lonely and polarized world, an app like Co Star can help bring people closer to themselves and to the people around them,” Vardhana said. “Co Star uses astrology as a way to enable people to introspect and examine their lives individually and in relation to others.”

Daily Harvest

Daily Harvest Rachel Drori

Daily Harvest

Company: Daily Harvest

Recommended by: Courtney Reum, cofounder, M13

Relationship to the company: Investor and board member

What it is: A frozen-meal delivery service that boasts healthy ingredients.

Why it’s hot: “Daily Harvest has changed consumers’ relationship with the kitchen’s most underutilized and underestimated appliance: the freezer. I don’t go to the pantry anymore to grab and go; I get what I need from the freezer and it’s not only nutritious but tastes good,” said Reum. “They aren’t even in retail yet, and have extended their product line significantly to offer a full-suite of products.”

Frida

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Frida CEO Chelsea Hirschhorn
Frida

Company: Frida

Recommended by: Mike Duda, managing partner, Bullish

Relationship to the company: No investor relationship

What it is: Direct-to-consumer maker of babycare products like booger-suckers, butt-washers, and gas-relievers.

Why it’s hot: “While perhaps not en vogue to pick a brand with zero venture funding, Fridababy has taken on a high passion category where brands have not built a relationship with their end-user,” said Duda.”And like most potential breakout brands, this one has exceptional owners: CEO Chelsea Hirschhorn quite literally put herself out there on the importance of postpartum, and husband CMO Eric Hirschhorn has dipped into his old Burger King days to focus on culture versus performance marketing.”

Judy

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Judy

Company: Judy

Recommended by: Nik Sharma, independent investor

Relationship to the company: Investor

What it is: Maker of emergency kits with products like flashlights, first aid supplies.

Why it’s hot: “Judy is taking on a very underserved category — there are no viable competitors to the product, except AAA and the Red Cross,” Sharma said. “And they also have a unique approach to distribution that combines the traditional DTC approach of using paid media with a very intimate IRL component of Judy classes, which teach mothers, fathers and those who want to learn how to prepare for these experiences with the products.”

Kangaroo

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Kangaroo

Company: Kangaroo

Recommended by: Ian Sigalow, cofounder and partner, Greycroft

Relationship to the company: Seed investor

What it is: A do-it-yourself smart home security system.

Why it’s hot: “If Ring’s acquisition is any precedent, Kangaroo has the potential to reach a massive market US home owners because it offers state-of -the-art home security at a fraction of the price of its competitors,” Sigalow said. “Since they manufacture their own hardware from scratch, it’s a fully-integrated system where everything connects through your phone.”

Kin Euphorics

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Kin Euphorics

Company: Kin Euphorics

Recommended by: Byron Ling, partner, Canaan

Relationship to the company: Investor

What it is: Maker of non-alcoholic functional drinks with ingredients like caffeine, adaptogens and nootropics, as well as supplements like GABA, 5-HTP and rhodiola extract.

Why it’s hot: “Americans are drinking less alcohol, and while alcohol companies are responding to that by creating low-alcohol alternatives, Kin Euphorics is creating an entirely new category of functional beverages,” Ling said. “Their entire approach, brand positioning and packaging is designed around a lifestyle of enabling consumers to socialize in a different way at night and also take back their mornings.”

Live Tinted

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Live Tinted founder Deepica Mutyala
Live Tinted

Company: Live Tinted

Recommended by: Hayley Barna, partner, Firstround Ventures

Relationship to the company: Angel investor

What it is: A community-centric beauty company founded by Instagram influencer Deepica Mutyala with products catering to diverse skin tones.

Why it’s hot: “It’s a bold and inclusive brand, and beauty industry royalty Bobbi Brown is among the investor group,” Barna said. “It also expanded to international markets, and following the release of its cult color-correcting stick, will be releasing new products based on feedback from community.”

Oura

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Oura

Company: Oura

Recommended by: Kirsten Green, founding partner, Forerunner Ventures

Relationship to the company: Investor

What it is: A ring that tracks sleep and activity.

Why it’s hot: “It’s lightweight, waterproof ring tracks sleep quality, sleep stages, ECG-level resting heart rate and variability, as well as body temperature during the day and night, enabling users to optimize their health outcomes,” Green said. “We are waking up to the importance of sleep to foundational health. Oura has the potential to be a hub for all things sleep.”

Minna

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Minna

Company: Minna

Recommended by: Jon Keidan, Torch Capital

Relationship to the company: Investor

What it is: A sparkling tea with no added sweeteners and organic, non-GMO ingredients.

Why it’s hot: “We continue to see better-for-you beverages stock the shelves across major grocery chains, regional supermarkets and local corner stores — and tea is the most popular drink in the world,” Keidan said. “Within the sparkling beverage category, we were yet to see a clearly differentiated and stand-out product offering. Not only is Minna an incredibly delicious, clean and refreshing drink but their team has created a product that looks great, stands out on the shelves (and online), and encompasses an element of brand, mission and community that really stood out to us. It also donates a percentage of its sales to non-profits such as Choose Love and Help Refugees that advocate for inclusion in all forms.”

StockX

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StockX

Company: StockX

Recommended by: Tim Armstrong, founder and CEO, DTX Company

Relationship to the company: Investor

What it is: A direct-to-consumer marketplace for collectibles like clothing and sneakers.

Why it’s hot: “StockX is hot because it has nailed a DTC marketplace for the hottest collectibles across all demographics,” Armstrong said. “It has mixed, trust, branding, utility and coolness together into a consumer experience that is hard to resist and fun to use — Air Jordan meets DTC.”

Studs

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Studs

Company: Studs

Recommended by: Caitlin Strandberg, principal, Lerer Hippeau Ventures

Relationship to the company: Investor

What it is: A jewelry and piercing brand geared at Gen Z and millennials.

Why it’s hot: “Studs combines both retail and e-commerce to provide consumers with affordable, high-quality, and trend-forward jewelry. Cofounders Anna Harman and Lisa Bubbers noticed a massively underserved market in the retail piercing space, where consumer options were limited to uninspired piercing jewelry from tattoo parlors and mall kiosks,” Strandberg said. “Studs’ brick-and-mortar studio offers everything from CBD beverages and ‘earscape’ consultations to special collaborations with brands like ManRepeller. Its online experience equally conveys the brand’s ethos and mission of self-expression.”

Talea Beer

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Talea

Company: Talea Beer

Recommended by: Angela Lee, founder and CEO, 37Angels

Relationship to the company: Investor

What it is: New York-based beer company geared at women.

Why it’s hot: “Craft beers have traditionally been directed at men, but with names like ‘Lizard King, ‘Arrogant Bastard Ale,’ and ‘Raging Bitch,’ Talea Beer is hoping to disrupt the industry by bringing an easy-to-drink beer to women, a market that has until now been ignored,” Lee said.

Tonal

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Tonal

Company: Tonal

Recommended by: Peter Pham, cofounder and partner, Science

Relationship to the company: Angel Investor

What it is: A home-fitness device that combines a screen with weight machine arms.

Why it’s hot: “Home fitness is getting a lot of attention because of Peloton, and Tonal is doing really well,” said Pham. “Tonal has arms that pop out, and offers a full-weight gym in addition to instructors on the screen.”