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DTC Podcast

Bonus: Preparing Your DTC Brand for Acquisition: Lessons on the PE Path from Because Ventures

30 Apr 2025

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Subscribe to DTC Newsletter - https://dtcnews.link/signupIn today’s DTC Podcast, we sit down with Jeremy Horowitz, founder of Because Ventures, a private equity firm laser-focused on acquiring and scaling DTC brands doing $10M–$100M in revenue. Jeremy shares why VC funding often damages DTC brands and how PE can provide a more sustainable growth path for founders.https://because.ventureshttps://www.linkedin.com/in/jeremyhorowitz1/https://letsbuyabiz.xyz/subscribeKey Topics Covered:Why venture capital is usually a mismatch for DTC brandsHow PE firms like Because Ventures evaluate acquisition targetsThe #1 thing founders should do 6–12 months before sellingThe role of clean SOPs and financials in maximizing valuationHow WhatsApp marketing (through their acquisition of Coco AI) is the next SMS in EuropeBig Idea:VC is not designed for DTC brands; disciplined operations and a focus on profitable growth are the real success path.Timestamps00:00 - Top signals PE looks for when acquiring brands02:00 - Jeremy's journey from agency to SaaS exits to PE06:00 - What changed in the brand acquisition market since 202010:00 - Why VC isn't a great fit for DTC physical products14:00 - The dangers of scaling too fast with venture capital18:00 - How PE approaches growth differently from VC20:00 - Key traits of brands that are acquisition-ready24:00 - What founders should do 6–12 months before selling28:00 - The importance of industry benchmarks and P&L metrics30:00 - Inventory management, CAC payback, and repurchase rate32:00 - Inside Because Ventures’ first acquisition: Coco.aiHashtags#DTCgrowth #EcommerceAcquisition #PrivateEquity #FoundersJourney #VentureCapital #CocoAI #BrandExitStrategy #ShopifyApps #WhatsAppMarketing #CashFlowTips Subscribe to DTC Newsletter - https://dtcnews.link/signupAdvertise on DTC - https://dtcnews.link/advertiseWork with Pilothouse - https://dtcnews.link/pilothouseFollow us on Instagram & Twitter - @dtcnewsletterWatch this interview on YouTube - https://dtcnews.link/video

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