XRC Ventures

"For founders, their ability to build community organically and not resort to a lot of ad spend to get that community fired up [is important]. The companies that do that best have a rabid following. They have solved a problem, and people really appreciate it. They are engaging that community constantly. They’re speaking with their customers on Reddit. Around 50% of your business should be coming from repeat traffic and not just new customers. That’s a really good sign that a brand has a shot at making it." - XRC Ventures Founder and Managing Partner Pano Anthos on what we like to see from founders, as told to Danny Parisi for the Glossy Investor roundtable. Read the full story on Glossy now and let us know your thoughts on consumer brand + founder green flags and red flags in the comments. #ConsumerBrands #Founders

"Retailers are preparing for a future where any repetitive corporate tasks are going to be at least influenced by AI. Retail CEOs are going through their processes with a fine-tooth comb to see where they can use AI technology to make things faster or more efficient. Those areas could include customer support, monitoring and forecasting the supply chain, and analyzing legal documents. Boards have started to demand this from them. The mandate to the CEO is, ‘Are you on this AI bandwagon or not? Are you drilling into your business processes with a lens toward hyper-efficiency and not so much cost-cutting?' It’s really about being efficient with the labor you have, and it may result in job losses. It may also result in reassignments into more important tasks.” -- Pano Anthos as told to Mitchell Parton of Modern Retail, on the ways AI is reshaping retail. #AI #Innovation #FutureofRetail

For most beauty entrepreneurs, building a $100 million business requires significant capital investment, but how much? According to XRC Ventures, it takes $15 million to $25 million to reach the scale where strategics will consider acquisition. However, not all investors and entrepreneurs agree. "The $15 million to $25 million requirement assumes growth must be bought," says Bill Sweedler of Windsong Global. "But brands that earn their growth through product excellence, authentic community building and founder discipline around profitability can reach $100 million on less capital." Anna Whiteman of Coefficient Capital offers a nuanced take: "Capital requirements will always vary by category, retailer, macro environment, and the best brands in the space will scale with relative capital efficiency to drive acquisition premiums." Read more: https://bit.ly/4qJN7L1 #hereforthefierce #beautybusiness #beautynews

Congrats to Gather AI for being recognized in the Inc. Magazine Power Partner Awards, which recognize leading B2B companies. 🏆

The Timing Problem: Why Strategics Keep Missing the Next $100M Brand In the final part of our How Brands Get to $100M series on the Brand Capital Report, Diana Melencio and Andrew Ross explore a paradox shaping modern CPG: By the time corporates show real interest in an emerging brand, they’re often negotiating with a growth fund — not a founder. The same professionalization that makes a brand acquirable also makes it harder (and more expensive) to acquire. Governance tightens, valuations rise, and the founder’s motivation shifts from money to mission. In this edition we break down: - Why corporate venture models fail to move at founder speed - How CPG M&A lost the plot on innovation — and why 58% of deals underdeliver - The “renewal imperative” for corporates: engaging earlier, structuring smarter, and partnering better At XRC Ventures, we believe renewal starts with proximity. Strategics don’t need more venture arms — they need closer partners who bridge entrepreneurial speed with corporate scale. Read Part III at the link in our comments and let us know what you think. #ConsumerBrands #CPG #VentureCapital #MergersAndAcquisitions

We hosted our annual LP Day Meeting + Cocktails yesterday evening — a dynamic session filled with fund updates, portfolio spotlights, and a thought-provoking fireside chat. Portfolio company founders Ally Tam Tumasova of Respin Health and John Howard of Croissant shared how they’re reshaping the future of their respective industries — Ally by redefining menopause care through a community-led, clinically backed model, and John by transforming the future of fashion resale. We were also joined by Terra Kaffe founder Sahand Dilmaghani and Analyst Nik Modi an insightful discussion on the future of brands, retail, and technology in the age of AI — followed by a Terra Kaffe demo during our cocktail reception. A special thank-you to our incredible host Chris von Türk and Morgan Stanley, and to all who joined us for a day of insights, analysis, and innovation — and to the founders, partners, and investors building the future together. Photos: Paola Chapdelaine #LPDay #VentureCapital #FutureofAI

Strong IPO momentum and record AI investment are setting the stage for a dynamic close to 2025. Join our founder and Managing Partner Pano Anthos and Alan Wink, Managing Director of Capital Markets at EisnerAmper, for a 30-minute Capital Markets Update exploring: - The latest VC and IPO trends - AI’s growing influence on valuations - What to watch heading into 2026 Register here:  bit.ly/3WY1UUA

In Part II of our Series on How Brands Scale to $100M, Diana Melencio and I look at the changes to capital architecture, and the evolution of governance and control that often accompanies that journey. Specifically, what happens when brands take on growth equity investment. This evolution of capital and governance structure has important implications for both founders and subsequent acquirers (as well as obviously the investors and managers who provide and manage growth equity investments). XRC Ventures #themoreyouknow

The path to $100M isn’t just about growth — it’s about ownership. Part II of our three-part series, How Brands Get to $100M, digs into the capital mechanics that define outcomes: Growth Rounds, Liquidity & Dilution. We detail how top consumer brands design funding rounds that protect founder ownership while still creating room for scale — and what that means for investors and strategics navigating today’s tighter markets. > For acquirers, it’s about the trade-offs of growth equity — governance, but also hurdle price. > For founders, it’s insight into "hot" growth rounds and balancing liquidity with long-term upside. In Part I, we covered the Economics of $100M — how much capital it takes, where it’s spent, and what today’s dynamics mean for strategy. Now, in Part II, we explore how capital design drives outcomes. cc Andrew Ross XRC Ventures #ConsumerBrands #CPG #VentureCapital #GrowthEquity