IAB 250 Direct Brands to Watch

Insights and Examples

NOW WITH
100 DTC Services
to Watch!
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The IAB 250 to Watch in 2020: Products
APPAREL & FASHION BABY CARE & PARENTING HEALTH & WELLNESS

BEER/WINE/ALCOHOL HOBBIES & LIFESTYLE

CONSUMER ELECTRONICS

FOOD & BEVERAGE HOME & APPLIANCE

PERSONAL CARE

PETS

2
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Now with 100 Services!
APPAREL & FASHION FOOD & BEVERAGE HOBBIES & LIFESTYLE

BABY CARE & PARENTING

EDUCATION HEALTH & WELLNESS PERSONAL CARE

PET CARE

TRAVEL

FINANCE HOME & APPLIANCE

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IAB Proprietary Research, 3.3.20
Headquarter Locations, Coast-to-Coast

1. California
2. New York
3. Colorado / Massachusetts
4. Florida / Texas
5. Illinois

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TEA DROPS: VC Backed; Subscription; Passionate Online Community

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TEA DROPS: VC Backed; Subscription; Passionate Online Community

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Top Investors
The top 9 investors supported 31 DTCs on the 22 additional investors supported 44 DTCs:
2020 IAB 250 Direct Brands to Watch list:
Company # of DTCs
Company # of DTCs BAM Ventures 2
New Enterprise Associates 5 Brand Foundry Ventures 2 • Most DTC companies
AccelFoods 4 Burch Creative Capital 2
Forerunner Ventures 4
have multiple investors
CanopyBoulder 2
Kleiner Perkins Caufield & Byers 3 CRV 2
Lerer Hippeau Ventures 3 Cue Ball Capital 2 • A total of 296 investors
M13 3 Fidelity Investments 2 accounted for
RRE Ventures 3 GGV Capital 2
Tiger Global Management 3 Grace Beauty Capital 2
investment in 104 DTC
Upfront Ventures 3 Greycroft 2 companies in the 2020
GS Retail 2 IAB List
L Catterton 2
Ludlow Ventures 2
Maveron 2
Mousse Partners 2
Rosecliff Ventures 2
Shrug Capital 2
Simon Ventures 2
Note: The number of DTC companies with investment from top 9 and additional Spark Capital 2
22 VCs are not additive. Many DTCs have multiple investors. VMG Partners 2
Wellington Management 2
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The Heaviest VC Funding is Predominantly on the Coasts

Nearly 90% of DTCs on the 2020 IAB “To Watch” list that have VC investment are hdq’d on the
East and West coasts

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Subscriptions: By Category
BEER/WINE/ALCOHOL HOME & APPLIANCE FOOD & BEVERAGE

APPAREL & FASHION PERSONAL CARE HEALTH & WELLNESS

BABY CARE & PARENTING PETS HOBBIES & LIFESTYLE

FOOD & BEVERAGE APPAREL & FASHION HOME & APPLIANCE

BABY CARE & PARENTING TRAVEL

HEALTH & WELLNESS

EDUCATION

HOBBIES & LIFESTYLE

FINANCE
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PUP BOX: Subscription; Customized Over Time; Info + Product

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PUP BOX: Subscription; Customized Over Time; Info + Product

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Category View: Where are the Hot Investment Opportunities?
Measured from launch date, the Personal Care vertical has experienced the fastest DTC revenue growth in the
shortest time period—followed by Home & Appliance, Food and Beverage
Estimated Revenue vs. Years in Business
$25,000,000
Food and Beverage
$20,000,000 Personal Care Apparel/Fashion
Estimated Revenue

Hobbies/Lifestyle
$15,000,000 Health/Wellness Alcohol/Beer/Wine
Baby Care/Parenting Home and Appliance
$10,000,000 Consumer Electronics
Pet Care
$5,000,000

$0
0.0 2.0 4.0 6.0 8.0
Years in Business
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CHAIRISH: M/F Co-Founders; Curated Selection; Envision Before Buy

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CHAIRISH: M/F Co-Vounders; Curated Selection; Envision Before Buy

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THRIVE MARKET: Top Tier Revenue; Subscription; Philanthropic

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THRIVE MARKET: Top Tier Revenue; Subscription; Philanthropic

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Categories with a Smaller Social Footprint are Prime Targets for Media, Big
Brands & VCs
Health/Wellness, Baby Care/Parenting Followed by the Food & Beverage, Apparel/Fashion verticals are all in
need of greater awareness, despite the fact that their revenue growth is fast

Estimated Revenue vs. Years in Business vs. Social Footprint Index

$25,000,000 Food and Beverage
Apparel/Fashion
Personal Care
$20,000,000 Hobbies/Lifestyle
Estimated Revenue

Home and Appliance

Alcohol/Beer/Wine
$15,000,000
Health/Wellness
Consumer
$10,000,000 Baby Care/Parenting Electronics

Pet Care
$5,000,000

$0
0.0 2.0 4.0 6.0 8.0
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Years in Business
While a Higher Social Footprint = Higher Revenue…

Estimated Revenue by Social Footprint Quartile

$30,000,000

$25,000,000

$20,000,000

$15,000,000

$10,000,000

$5,000,000

$0
1 2 3 4

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…Social Footprint and Digital Spend are Correlated
Smart, diversified media strategy can break the awareness plateau

% of DTCs Spending in Digital by Social Footprint Quartile

90%
80% 78%
70%
60%
50%
40%
30%
20%
10%
0%
1 2 3 4

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WINKY LUX: Room to Scale Up; Stack-Your-Own Supply Chain; Brick & Mortar

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WINKY LUX: Room to Scale Up; Stack-Your-Own Supply Chain; Brick & Mortar

SHIPPING
Time is Money Honey! All products
ordered before 3pm are shipped the
same day and will arrive quickly. Lucky
Manhattan poodles may request same
day delivery for a $10 fee. Some
companies want you to wait a
week! Ain't nobody got time for that.

Ps- It’s no secret that we kind of like you…which means we’d

love to hear from you. You can hit us up directly
at OG@winkylux.com

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FLAVIAR: High Growth/Social Correlation; Customer Experience & Satisfaction

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FLAVIAR: High Growth/Social Correlation; Customer Experience & Satisfaction

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Hey Big Spenders: Top DTC Digital Spend by Category
ALCOHOL /BEER/WINE HEALTH & WELLNESS FOOD & BEVERAGE

APPAREL & FASHION HOBBIES & LIFESTYLE HOBBIES & LIFESTYLE

HEALTH & WELLNESS

CONSUMER ELECTRONICS PERSONAL CARE TRAVEL

FOOD & BEVERAGE

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THIRD LOVE: Media Diversification; Consumer-Centric; Philanthropic

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THIRD LOVE: Media Diversification; Consumer-Centric; Philanthropic

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TEA DROPS: VC Backed; Subscription; Passionate Online Community…
AND Women in Key Leadership Roles

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Women Founders by Category: Products
ALCOHOL/BEER/WINE BABY CARE & PARENTING HOME & APPLIANCE

APPAREL & FASHION CONSUMER ELECTRONICS

FOOD & BEVERAGE PERSONAL CARE

HEALTH & WELLNESS PETS

HOBBIES & LIFESTYLE

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Women Founders by Category: Services
APPAREL & FASHION FOOD & BEVERAGE HOME & APPLIANCE

BABY CARE & PARENTING HEALTH & WELLNESS PERSONAL CARE

EDUCATION TRAVEL

HOBBIES & LIFESTYLE

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Women Founders: Category Diversification; Gaining in VC Attention

Female Founder DTCs % Categories,

by Company Age Group
100% Alcohol/Beer/Wine

90% Apparel/Fashion
80% Baby Care/Parenting
70% Consumer Electronics
60% Food and Beverage
% of Female Founder DTCs
50% 20% with VC Funding
Health/Wellness
40% 17%
Hobbies/Lifestyle 15%
30%
Home and Appliance 10%
20%
Personal Care
10% No data
5%
captured Pet Care
0%
0%
9 to 10 6 to 8 3 to 5 < 3 Years 9 to 10 years 6 to 8 years 3 to 5 years < 3 Years
years years years

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