Sublime

5. On the capital raising front, venture capital should be the exception rather than the rule.

7. Only in rare circumstances does it make sense to raise significant institutional capital for a consumer brand early.

10. Revenue multiples are for SaaS companies. Consumer brands are valued on EBITDA multiples.

Venture firms should aggressively ally with these disruptors. While tier 1 funds will worry more about Tiger Global, solo investors have changed the market’s dynamics. Proactive firms will adapt, empowering these managers and benefiting from their favorable brand and impressive reach.