Issue Highlights

THIS WEEKS MANTRAS

1. Every step forward, no matter how small, is a victory worth celebrating. 

As female founders we often adopt this narrative that we are never enough, no matter how much we accomplish…it is never enough. Well, I am here to tell you that you are more than enough and you have achieved more than enough. You are OVERQUALIFIED, You put in TOO many hours, you are OVER EDUCATED, You are OVERLY COMPASSIONATE AND KIND AND SUCCESSFUL! Even if the wins seem small to you now, celebrate them. Celebrate you.

2. Surrounding myself with Bold, Ambitious people fuels my growth.

Every time I have gotten into the right rooms at the right times…I have been expanded in the most invaluable ways. What rooms can you get into today that fuel, nurture and encourage your growth?

Mood….

THIS WEEKS QUESTIONS:

1. How can I maintain a balance between big-picture thinking and practical execution, ensuring that while the company innovates and scales, it doesn't lose sight of operational stability and efficiency?

2. What steps can I take to build and sustain a culture of continuous improvement and adaptability within my team, especially in the face of rapid growth and market changes?

NEWSLETTER ROUNDUP:

 👉🏼WE LAUNCHED AN IN-KIND GRANT WORTH $500K  HERE. 🎉🦄
👉🏼 VENTURA LISTINGS: Ready to Buy or Sell a Company? Subscribe to the Ventura Newsletter HERE.
👉🏼 HEADLINES TO WATCH: Listen to the Audio Headline Update HERE. 
👉🏼 STARTUPS TO WATCH: The Wellness Trend Taking over the Wellness Industry & “Ugly” Products Made cool is where the most successful companies will thrive in 2024 & beyond.  
👉🏼 CONSUMER TRENDS: Gen Z & Millenials are Saying Goodbye to Skincare/Makeup/ Wellness Bundles
👉🏼 STARTUP EDIT: #UnderconsumptionCore is on the Rise & This is what I would be doing if I was a Consumer Brand wanting to get ahead of it
👉🏼VENTURA EDIT: Ventura Debt is on the Rise which means a Boost in M&A Activity is Soon to Follow. 

🦄 Portfolio Client NYC Brunch Club is looking for the next consumer brand to share with their consumers!! If you are a consumer brand looking to get in front of over 8,000 Warm Members of NYC - Respond back to this email to chat about Sponsorship Opportunities!!

🦄 NEW Podcast Episode Out on Excuse Me Sir? - We are looking at M&A Success Wrong. In this episode, we talk with an Integrations Expert about how People are at the heart of M&A success. HERE.

🦄 We launched a $500,000 In-Kind Grant for Female Founders Industry Agnostically!!!! Super Super Excited to Announce this Grant. Read HERE. For More Info! 

🦄 VENTURA LISTINGS™ Has Moved!!! We have created your own dedicated Dealflow Newsletter & Now Offer a dedicated listings space in our SBA™ Community with more robust access and profiling options. Join the New Ventura Listings Space HERE. FOR FREE!!

Gen Z & Millenials are Saying Goodbye to Skincare,Beauty & Wellness Bundles.

I just posted a 7 Minute Deep Dive on a Section of the Co-Efficient x The New Consumer “Mid Year Consumer Trends 2024” Report” ( I have a whole 10 Part Series coming out ) but it is an ABSOLUTE must-read for founders ASAP HERE.

In this deep dive, I let you in on the things Consumer Brands need to be doing in 2024 to get ahead of this trend and remain a consumer-centric brand.

@laceymadisonofficial

Startup Edit: Unpacking #UnderconsumptionCore and it’s Impact on Consumer Behaviour

We’ve been seeing a lot of chatter about #underconsumptioncore lately. It's a trend that’s making waves in consumer behaviour, especially in how people approach buying products and living their lives. But what does it really mean, and how should we, as business owners and entrepreneurs, respond to it? Let’s dive in.

Before we can understand what to do…we need to understand the trend itself:

At its heart, #underconsumptioncore is all about intentional living. It's a movement where people focus on minimalism, sustainability, and reducing waste. It’s not just about spending less but making thoughtful choices about what to buy, how to use it, and ultimately, how to live a more meaningful life.

The rise of this trend is a direct reaction to overconsumption and the fast-paced, often wasteful lifestyle that’s been prevalent for decades.

Consumers are becoming more aware of the environmental and social impacts of their purchases and are making a conscious effort to shift towards more sustainable practices.

So In a nutshell, #underconsumptioncore has three distinct focuses:

1. Sustainability Focus:

   • Consumers are becoming more environmentally conscious, seeking to minimize their carbon footprint by purchasing fewer, more durable, and eco-friendly products.

2. Quality Over Quantity:

   • The trend emphasizes investing in high-quality, long-lasting items rather than accumulating a large number of cheaper, disposable products.

3. Mindful Consumption:

   • There is a growing preference for thoughtful purchasing decisions, with consumers considering the ethical implications and overall impact of their consumption habits.

The interesting statistic that The Co-Efficient Capital x The New Consumer Report Highlighted was the Duality and Fragility of Consumer Trends.

Despite 60-70% of consumers believing sustainability is important and admitting to wanting to incorporate more sustainable practices into their life and…

Despite 48% of Gen Z claiming “Values” are an important factor in their buying decisions….

40% STILL said they have shopped from fast fashion digital brands such as Shein & Temu over the past year.

And MORE interestingly… look at this statistic.

More Shein Shoppers make sustainability claims than the average consumer.

These platforms are known for their fast fashion and affordability, which often contradicts sustainable practices. This paradox raises the question:

why do these seemingly contradictory behaviours coexist?

Let’s Talk Parallel Trends Baby:

The reason duality exists within these parallel trends can be chalked up to a few key areas.

• Affordability and Accessibility: One of the primary drivers for Gen Z's shopping habits on Shein and Temu is affordability. Sustainable products often come with a higher price tag, which can be a significant barrier for younger consumers who may not have a substantial disposable income. Fast fashion brands provide trendy items at low prices, making them more accessible.

• Instant Gratification and Trend Responsiveness: Fast fashion brands are adept at quickly responding to trends, offering a wide variety of styles that change frequently. This appeals to Gen Z’s desire for the latest trends and instant gratification, something that slower, sustainable brands may struggle to provide. Further Playing into this #overconsumptioncore #norepeats fad.

• Cognitive Dissonance: Gen Z shoppers experience cognitive dissonance when their values clash with their actions. They might justify their purchases by focusing on affordability and accessibility while downplaying the environmental impact. The disconnect between their ideal values and actual behaviour can lead to rationalizations that mitigate feelings of guilt.

• Marketing and Perception: Some fast fashion brands have begun incorporating sustainability narratives into their marketing. Shein, for example, has made sustainability claims and introduced eco-friendly collections. This marketing strategy can create a perception that these brands are more sustainable than they are, aligning better with Gen Z’s values.

• Lack of Awareness and Transparency: There is often a lack of transparency in the supply chains of fast fashion brands. Consumers might not be fully aware of the environmental and ethical implications of their purchases. Brands that market themselves well can overshadow their less sustainable practices, leading consumers to believe they are making more ethical choices than they are. 

And if we call a spade a spade, there always has been and will continue to be an underlying ignorance of experiences that are outside of their own. So whilst Gen Z’s understand the importance of ethical, eco-friendly and sustainable fashion…the true weight of the situation will never truly become apparent enough to change their consumption habits when faced with temptation.

Why Shein Shoppers Claim Sustainability

So if all of the above factors influence their purchasing decisions - then why do Gen Z’s still make sustainability claims?

• Desire for Ethical Identity: Gen Z consumers want to be seen as ethical and sustainable, which aligns with their broader generational identity. Even if their shopping habits don't always reflect this, they may still claim to value sustainability to align with their self-perception and social image.

• Influence of Marketing: Effective marketing by Shein and similar brands can convince consumers that they are making more sustainable choices. Highlighting eco-friendly lines or sustainable initiatives can sway perceptions, even if these efforts are minimal compared to the overall business model.

• Compartmentalization: Consumers might compartmentalize their purchasing behaviour, separating their fast fashion purchases from their overall values. They might believe they can support sustainability in other areas of their life, balancing out their less sustainable shopping habits.

What This Means for Consumer Brands

For brands, this shift is significant and understanding the paradox is the first step to truly meeting the consumers where they are at. It’s a call to rethink how we produce, market, and sell our products. Here is how you can get in front of these trends and remain a market leader amongst younger brands:

1. Quality Over Quantity: Consumers are looking for products that last longer and offer genuine value. This means you should be spending longer timeframes and allocating further budgets to quality testing and assurance above all else.

2. Affordable Sustainability Is Key: Eco-friendly products and sustainable business practices are no longer optional—they’re expected. However, I think before we get there…we need a means to bridge the gap between how consumers shop today VS the goal. What sustainability, ethical and eco-friendly adjustments can you make to the brand, your production and your supply chain that meet this gap whilst still being able to keep products affordable enough to encourage the spend?

3. Transparency Matters: Education & Transparency will continue to be key in converting these customer segments. Educate consumers about the true impact of their purchases, highlight genuinely sustainable practices & be open about your production processes, sourcing, and the lifecycle of your products. Consumers are more likely to trust and buy from brands that are transparent about their impact.

4. Personal Connection: Building a brand that resonates on a personal level is crucial. Share your story, values, and the impact you’re making. Consumers want to support brands that align with their own values.

5. Trend Alignment: To stay trend-aligned while maintaining sustainable practices, you need to have a REALLY good handle on your consumer data. Agility in Production is the difference between a sustainable brand that stays around vs one that doesn’t.

6. Innovation in Delivery: Consider offering repair services, product take-back programs, and other innovative solutions that align with the values of #underconsumptioncore. This not only extends the life of your products but also strengthens customer loyalty. We have seen this roll out with larger corporations but I would love to see more companies practice this across the board.

The #underconsumptioncore trend is more than a passing fad—it’s a fundamental shift in how consumers approach their lives and purchases. By understanding and adapting to this trend, brands can not only stay relevant but also thrive in a market that values quality, sustainability, and intentional living.

So, what changes will you make to align with #underconsumptioncore?

Let's continue this conversation and explore how we can all create more sustainable, meaningful businesses.

Join SBA™ Today or Respond Back to this email to find out how you can work with me this week!

Startups On Our Radar

There's a new wellness trend making waves on the internet, and it's all about continuous glucose monitoring (CGM) systems. If you thought wearable tech peaked with fitness trackers and smartwatches, think again. Companies like Zoe and Vively are leading the charge, offering CGM systems to help you understand your body's response to food, exercise, and stress in real time.

What's the Buzz About?

CGM systems, originally designed for diabetics to monitor their blood sugar levels, are now being adopted by health enthusiasts who want to optimize their wellness routines. These tiny devices, usually attached to your arm, provide continuous data on glucose levels, allowing you to see how different foods and activities impact your body.

How It Works

Simply attach the small sensor to your arm, connect it to an app, and voilà! You have a real-time window into your metabolic health. No more guessing if that post-lunch slump is due to a carb overload or if your morning jog spiked your glucose. With CGM, it's all laid out in data-driven detail.

Why It's Taking Off

1. Personalized Nutrition: No more one-size-fits-all diets. CGMs give you data on how your unique body responds to different foods.

2. Biohacking Made Easy: Fancy yourself a biohacker? CGMs are the ultimate tool, letting you tweak your diet and lifestyle for optimal performance.

3. Preventive Health: By understanding your glucose patterns, you can make proactive changes to avoid future health issues.

The Companies Leading the Charge

• Zoe: Known for its personalized nutrition plans based on your unique biology. Zoe combines CGM data with microbiome and blood fat tests to give comprehensive health insights.

• Vively: Offers an easy-to-use CGM system in Australia, providing users with actionable insights into their metabolic health.

But let’s keep it real: As exciting as this tech is, it’s not a magic bullet. It’s a tool – a super cool, high-tech tool – but still just a tool.

You’ll need to pair it with good old-fashioned healthy habits for the best results.

Whether you’re a health nut or just looking for a new way to understand your body, CGM Wellness Systems are worth a look. It’s like having a tiny, non-judgmental coach stuck to your arm, guiding you towards better choices and a healthier you.

So, are you ready to jump on the CGM bandwagon?

Because it’s rolling, and it’s bringing the future of personalized health with it.

I am letting it play out further before I give it a try, but it has certainly piqued my interest!

 I've been saying since DAY DOT that innovation with 'ugly' or 'taboo' brands is the future for new consumer products!" And here’s proof: MyBum is revolutionizing hemorrhoid care.

Let’s face it, hemorrhoids are a pain in the... well, you know. Half the population will deal with them at some point, and a whopping 85% of pregnant women will experience them by the third trimester. Yet, it's an issue often swept under the rug due to embarrassment.

Enter MyBum, a brand dedicated to breaking the silence and stigma. Their products, crafted with natural ingredients, provide effective relief from itching, inflammation, and soreness.

Hemorrhoids aren’t glamorous, but dealing with them shouldn’t be shameful. MyBum’s approach is all about discreet, effective care, fostering open dialogue, and making hemorrhoid relief something to talk about without blushing.

In the wellness world, tackling the "taboo" is the next big thing, and MyBum is leading the way. Let’s normalize the conversation and embrace these innovative, shame-free solutions!

MyBum are currently Raising!! Interested in getting behind them?

HEADLINERS TO KEEP TABS ON:

• Flo “Womens Health App” is the first Femtech App to reach Unicorn Status…but it is led by men. So it is it really a win for women in femtech? Read the Headliner HERE. Reply back to this email to let us know your thoughts?

• Zoe, the wellness device taking the wellness industry by storn just Raised $15M to fuel US Expansion HERE. This is is a BOOMING industry right now with a few core competitors across AUS & USA! Very excited to see how this growth plays out.

• Lack of Consumer-Centric/Consumer Data Backed Products is the reason only 5% of product launches ever succeed. HERE.

• Barnes & Noble Acquires Tattered Cover HERE.

• Canvas $320M Acquisition of AI startup “Leonardo” HERE.

• Bad News for Australian Female Founders looking to get their hands on on non-dilutive grants as “Boosting Female Founders” Grant has been culled with over $17M in funding up in the air HERE.

• As a Consumer Brand, Buzz is your best friend to building an $100M Brand. Industry experts, founders & Investors are sharing their insights for doing this successfully HERE.

• How this Female VC got hundreds of Silicon Valley Investors to Pledge Kamela Harris HERE.

• Ventura Debt is on the way up, paving the way for M&A Boom HERE.

LISTEN TO THIS WEEKS EPISODE OF THE NEW EDIT OVER ON SPOTIFY HERE.

M&A Edit: Venture Debt is Up which means a Boost in M&A Activity is likely soon to follow.

@sirbusinessacademy

Venture debt is on the rise which means a boost in M&A activity is likely to follow.. And if enterprises are confident in the market cond... See more

So, why is this happening, and what does it mean for you, whether you’re buying or selling an SMB? Let’s unpack it.

The Rise in Venture Debt Funding

Venture debt is increasingly becoming a preferred financing option, especially in the current economic landscape. Unlike equity financing, where investors take an ownership stake in the company, venture debt involves borrowing money that must be repaid, often with interest. This type of funding is particularly appealing to startups and growth-stage companies that want to avoid diluting their equity.

The uptick in venture debt is driven by several factors:

1. Market Volatility: With fluctuating equity markets, startups prefer venture debt to maintain control and ownership.

2. Lower Cost of Capital: Interest rates are continuing to deflate, making debt a cheaper option compared to giving up equity.

3. Predictable Repayments: Fixed repayment schedules provide clarity and predictability in financial planning.

So, how does this rise in venture debt translate into increased M&A activity?

1. Increased Buyer Power: Buyers with access to venture debt can finance acquisitions more readily. This boosts their purchasing power, enabling them to act quickly on attractive opportunities.

2. Seller Opportunities: For sellers, especially those in the SMB sector, a robust market of potential buyers means more competitive offers. This can drive up valuations and provide better exit options.

3. Strategic Growth: Companies leveraging venture debt can pursue strategic acquisitions without immediately impacting their cash flow. This means they can expand rapidly, integrating complementary businesses to enhance their market position and potentially position themselves as better acquisition targets.

4. Mitigated Risk: For both buyers and sellers, venture debt provides a way to share the financial risk. Sellers might be more willing to negotiate favourable terms if they know the buyer has a reliable financing plan and vise versa.

Watch the reel for my ongoing deep dive!!!

What This Means for SMB Buyers and Sellers:

For Buyers:

• Leverage Debt Wisely: Utilize venture debt to finance acquisitions, but ensure the repayment terms align with your cash flow projections. Overleveraging can be risky, so it’s crucial to maintain a balance.

• Be Strategic: Target acquisitions that complement your existing business & Look for synergies that can drive growth and improve operational efficiency ( Whether this be in a Horizontal or Vertical market )

• Act Swiftly: With increased competition, being prepared to move quickly on opportunities can give you an edge. Have your financing and due diligence processes ready to go.

For Sellers:

• Maximize Valuation: In a market with active buyers, ensure you’re presenting your business in the best light. NOW is the time to be cleaning up and getting exit ready.

• Explore Options: Don’t settle for the first offer. With more buyers in the market, take the time to evaluate multiple offers to find the best fit for your business and your future goals. More money means potentially more upfront cash offers HOWEVER not all money is good money. The most important metric is the new buyer’s competency to grow your business.

• Prepare Thoroughly: Have all your financials, operations, and legal documents in order. That data room needs to be primed and ready to position yourself as a favourable acquisition target and make the sale go much more smoothly and efficiently.

The rise in venture debt funding signals a promising boost in M&A activity, especially in the SMB sector. For buyers, it’s a chance to strategically grow and expand with affordable financing. For sellers, it opens up opportunities to maximize value and find the right exit. As always, whether you’re buying or selling, staying informed and prepared is the key to navigating this dynamic landscape successfully.

As always for more M&A deep dives, coaching, consulting and so much more head over to SBA™ and join our M&A cohort for free. ( Only free for the first 50 Subscribers )

.Disclaimer:

This content is for informational purposes only and does not constitute financial or legal advice. Always consult with a professional advisor before making any financial or legal decisions related to mergers and acquisitions. 

JOIN SBA™ TO PREPARE YOUR COMPANY FOR ACQUISITION ( WHETHER YOU ARE A BUYER OR A SELLER )