#60 Venture Capital & Private Equity 101 with VMG Partners' Wayne Wu

The Startup CPG Podcast

Startup CPG

Startup, Food, Business, Beverage, Cpg, Entrepreneurship

4.9 • 642 Ratings

🗓️ 6 September 2022

⏱️ 47 minutes

🔗️ Recording | iTunes | RSS

🧾️ Download transcript

Summary

Venture capital - a term we've all heard but maybe don't fully understand (this is a safe space to admit what we don't know and I'll be the first to say that fundraising and private equity are pretty confusing). What we do know is that many of the consumer brands we love that have had successful exits have received funding from VMG Partners - like Perfect Bar, KIND Bar, Pirates Booty, and Justin's to name a few. So we're lucky to have joining us today Wayne Wu, Managing Director at VMG Partners. If you aren't familiar with VMG, they are a private equity firm specializing in building iconic consumer brands. I'm a big fan of Wayne's podcast Unfinished Biz and reached out to ask him if he'd be willing to walk it way back for our Startup CPG community and take us through venture capital and private equity 101, and thankfully, he agreed. I learned a ton from this conversation and I hope you do as well. Listen in as Wayne shares: - Definitions for private equity and venture capital - How a venture capital fund works (you've all maybe figured out at this point that I'm a nerd but I LOVED this part! You may need to listen to it twice though; it's just packed with info and such an interesting peek behind the curtain that helps us understand investor behavior and motivations) - VMG's framework for evaluating brands, including total addressable market, gross margin, supply chain, founder fit, and velocities and key metrics and definitions for those areas - How VMG sources deals and why you should reach out to VMG or talk to their team at the next trade show no matter your brand's "stage" - What VMG's involvement with a brand looks like post-investment - And more!

Transcript

Click on a timestamp to play from that location

0:00.0	Get to know a lot of different potential investment partners.
0:07.0	Get to know them over time before you make one of the most permanent marriage decisions
0:12.0	an entrepreneur will ever make, which is to bring on an investment partner.
0:16.0	Welcome to the Startup CPG podcast. I'm your host, Jesse Freytag. Venture Capital, a term we've all heard but maybe don't fully understand. This is a safe space to admit what we don't know and I'll be the first to say that fundraising and private equity are pretty confusing.
0:32.6	What we do know is that many of the consumer brands we love that have had successful exits have received funding
0:38.8	from VMG partners, like Perfect Bar, Kind Bar, Pirates Booty, and Justins, to name a few. So we're
0:46.5	lucky to have joining us today Wayne Wu, managing director at VMG Partners. If you are
0:52.6	familiar with VMG, they are a private equity firm specializing in building
0:56.8	iconic consumer brands.
0:59.2	I'm a big fan of Wayne's podcast, Unfinished Biz, and reached out to him to ask if he'd be
1:04.2	willing to walk it way back for our startup CPG community and take us through venture capital
1:09.2	and private equity 101. And thankfully, he agreed.
1:13.1	I learned a ton from this conversation and I hope you do as well. Listen in as Wayne shares
1:18.5	definitions for private equity and venture capital. How a venture capital fund works? You've all
1:25.2	maybe figured out at this point that I'm a nerd, but I loved this part.
1:29.1	You may need to listen to it twice, though. It's just backed with info and such an interesting
1:34.0	peek behind the curtain that helps us understand investor behavior and motivations.
1:39.4	He also shares about VMG's framework for evaluating brands, including total addressable market, gross
1:45.7	margin, supply chain, founder fit, and velocities and key metrics and definitions for those areas.
1:53.3	How VMG sources deals and why you should reach out to VMG or talk to their team at the next
1:58.3	trade show, no matter your brand's stage,
2:05.3	what VMG's involvement with the brand looks like post investment and more.
	...

Please login to see the full transcript.

Previous episode | Next episode

Disclaimer: The podcast and artwork embedded on this page are from Startup CPG, and are the property of its owner and not affiliated with or endorsed by Tapesearch.

Generated transcripts are the property of Startup CPG and are distributed freely under the Fair Use doctrine. Transcripts generated by Tapesearch are not guaranteed to be accurate.