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‘It is all DTC now’: VCs are eager to strike deals again

In March, the fundraising environment for direct-to-consumer startups was "downright frozen," as Michael Duda, managing partner at hybrid accelerator agency and venture capital fund Bullish, put it. Now, March seems like a lifetime ago. Over the past six months, many direct-to-consumer startups in categories ranging from home improvement, health and wellness, and food have struck it big, reporting that their online sales have doubled or tripled while customer acquisition costs have decreased. Consumer investors are starting to close deals again, while investors that had previously soured on DTC startups because of high customer acquisition costs are starting to change their tune.

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