_RevTech Portfolio Insights.

Great startups today are learning to create an ideal customer profile (ICP) early in their go-to-market effort. This process of pattern matching is a worthwhile exercise to determine the set of customers which are likely to gain the most benefit from the startup’s product. When well executed, a beachhead of early adopters emerges from which the startup can defend and expand outward.

At RevTech, we’ve done our own pattern matching – for the ideal profile of an investment – and have determined it’s those companies that demonstrate both high growth and capital efficiency. When looking at those two variables, the women-led startups in our portfolio really stand out. Of our twenty-five active investments, the ten that are women-led have demonstrated 25% higher growth than their male counterparts, and they have done this with 75% less capital. National statistics reflect our findings. Just 2.1% of venture funding went to women-led startups in 2022, which demonstrates that capital is a precious resource for female entrepreneurs.

For a boutique VC firm in middle America, like RevTech, capital efficiency is vital. Of our twelve exits to date, the best results have been with companies that raised less than $20 million of total capital from startup to exit. Contrary to the West Coast method of “overcapitalize and shoot for the moon,” smaller capitalization may require more time to scale a business, but the payoff is that the entrepreneur will own a much larger share of her company and the threshold for an investor to receive a venture return is lowered significantly.

RevTech’s investment in FindMine provides a great example of high growth coupled with capital efficiency. We made our initial investment in FindMine in 2016, when the company was in its infancy, had completed its minimum valuable product (MVP), and had landed its first paid pilot with clothier, John Varvatos. FindMine’s product completes the look, both online and off, for brands and retailers by leveraging machine-learning. For example, when a customer looks at a pair of shoes online, the company’s technology will instantly populate complementary items – blouse, skirt, belt, handbag, etc. – around that pair of shoes to suggest ways to “complete the look.” The company’s cloud platform adjusts for inventory levels and does not require product tagging, custom feeds, or manual work.

FindMine raised Series Seed funding in late 2016 led by X-Seed Ventures, experienced lumpy growth during the next three years, and slowly began attracting enterprise brands, most notably Adidas.  As the global pandemic commenced in 2020, consumers took a long pause on apparel purchases. During that time, the company’s hard-earned revenue took a nosedive as one customer after another filed for bankruptcy.

Thanks to the resilience and tenacity of Founder and CEO Michelle Bacharach,the company weathered the storm, raised bridge funding, and rebounded with triple-digit growth each year, 2021 – 2023, adding to its customer roster such well-known brands as The GAP, Old Navy, Vineyard Vines, and Lululemon.

In late 2023, FindMine completed an oversubscribed Series A. This was particularly strong endorsement of the company’s powerful value proposition and growth forecast, as today’s fund-raising environment is quite difficult.

RevTech has amplified its initial investment in FindMine ten-fold since 2017, and now has a meaningful unrealized gain on its overall investment. 

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