CPG and D2C investors operate differently than traditional tech VCs. Most funds in this space come from consumer brand operating backgrounds—former P&G marketers, retail buyers, or founders who've exited their own brands—which means they'll scrutinize your gross margins, retail velocity, and path to profitability far more than your TAM slide. The fundraising bar has risen significantly: investors now typically want to see $1M–$3M in revenue plus at least one meaningful wholesale partnership before writing a check. Independent boutiques or Faire relationships usually won't cut it, even at seed. They're looking for distribution that signals scalability—regional chains, specialty retail with multiple doors, or partnerships that show a realistic path to national expansion.

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Category matters more here than in most venture verticals. Beauty and personal care remain investor favorites because of their 70–80% gross margins and active M&A market. Health and wellness—particularly supplements, self-care, and OTC products—are gaining momentum as GLP-1s reshape consumer behavior. Food and beverage is tougher; margins are thinner and exits are harder, so you'll need stronger proof of velocity and repeat purchase rates. One structural quirk of this space: many CPG-focused funds are comfortable with outcomes that would disappoint a traditional VC. A $50M exit to a strategic acquirer can be a great return for a fund writing $500K checks, which means these investors may actually be more aligned with founders who want to build a durable brand rather than chase a billion-dollar outcome.