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The Pitch

#83 Can Small Bras Be a Big Market?

The Pitch

Josh Muccio

Technology, Business, Investing, Entrepreneurship

4.61.5K Ratings

🗓️ 19 February 2020

⏱️ 32 minutes

🧾️ Download transcript

Summary

In VC, investors want to win big — that’s why they love highly scalable tech companies so much. But today’s founder, Jaclyn Fu, is selling actual things. Her startup, Pepper, makes real bras in a very real factory. There’s no tech except that you can buy her company’s stuff on the internet. So how do you convince investors that the opportunity is massive, when there’s nothing scalable about your startup? Today's investors are Maia Bittner, Elizabeth Yin, Sheel Mohnot and Charles Hudson. Here is Elizabeth's Twitter thread about debt vs VC financing for startups. Learn more about your ad choices. Visit podcastchoices.com/adchoices

Transcript

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0:00.0

In the wide world of venture capital, investors are always looking for startups where if they win, they can win big.

0:07.6

That's why they love companies that can grow really quickly, like Dropbox, AirbnbB&B, and Slack.

0:14.1

When a tech company gets a flood of new customers,

0:17.0

mostly they just have to spin up a new server.

0:19.8

But today's founder, Jacqueline Fu,

0:21.9

is selling actual things. Her company makes real bras in a very real factory.

0:28.0

There's no tech except for the fact that you can buy her stuff on the internet.

0:32.0

So the question is, how is she... for the fact that you can buy her stuff on the internet.

0:33.0

So the question is, how is she going to convince investors

0:37.0

that her bra business will be big bucks?

0:40.0

From Gimlet, this is the pitch.

0:42.3

I'm Josh Muchia.

0:44.9

Let's meet the investors.

0:46.4

I'm Maya Bitter.

0:47.8

Maya is making her debut appearance on the show.

0:51.0

She's the founder of two financial tech companies and she sold them both.

0:54.8

Now she's out scouting startups for Sequoia, one of the biggest VC firms in Silicon Valley.

1:00.6

I'm Elizabeth Yin. Elizabeth is a managing partner at Hustle Fund and so far

1:05.7

she's invested 30 million in over 250 startups. One example, a company called

1:10.9

Nerd Wallet. I'm Sheil Manette.

1:13.0

Sheil has sold three startups for over $50 million.

1:16.7

Now he's an angel invested in several companies worth billions today.

...

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