Plexo Capital Partner Lo Toney on Why VCs Shouldn't Treat CPG Brands Like Tech Startups

Too much cash can ultimately hamstring consumer good companies

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As retail disruption increasingly pushes the consumer-packaged goods industry into direct-to-consumer and ecommerce channels, new brands in the space are looking more and more like tech startups.

Blurring that distinction too much can be dangerous for both entrepreneurs and investors, according to Plexo Capital founding managing partner Lo Toney. Speaking at the Brandweek: Challenger Brands event in New York to Adweek CEO Jeff Litvack, Toney said venture capitalists too often expect the same kind of growth trajectory from a burgeoning CPG startup as they might from a digitally-based startup and will shower them with cash accordingly.



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