The funding gap in the natural products industry is growing. The funds are moving up-market. As the average fund size increases, the economics warrant that the average check size does as well. That means that a brand has to be further along in terms of revenue, distribution and brand awareness before they are able to secure institutional money.
At the same time, the industry’s most active angels are fatigued. They are getting crushed by the onslaught of inquiries. Some whom I’ve spoken with are receiving more than 50 pitch decks a month from founders who are desperate for their support. Even at their most active, these angels are likely to make less than 10 investments a year. As they find themselves buried by inquires, many have decided to make fewer but larger investments.
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