Brandless Closes, The DTC Facebook Challenge, DTC Versus Softbank

Companies with poor unit economics found themselves propelled by aggressive venture dollars (which themselves were propelled by a low-interest-rate environment). Those companies then turned those dollars into aggressive customer acquisition. Until recently, the market rewarded growth at all costs.

Perhaps the original mistake of the DTCs wasn’t in their vision, but in their decision to take the venture capital in the first place.

The promise of the internet has always been a low barrier to entry enabling unique people and brands to find passionate audiences and sustainable business models. That is more possible now through the combination of direct distribution, vertical focus and (often) direct monetization models. But the brands that can pull off DTC strategies need to be... See more