Investor Spotlight: Alex Malamatinas of Melitas Ventures
This lesson is an episode of Startup CPG.
Listen to the episodeWhat you'll get
A seed-stage consumer investor explains what he looks for in early brands, with a focus on the difference between gross margin (a share of the brand's revenue after the cost of making the product) and contribution margin (what is left of that revenue after every other cost of selling it), and gives rough gross-margin targets for food, beverage and beauty brands. His targets reflect what an investor wants from a venture-backed brand, so use them as a stretch benchmark for your own product rather than a rule.
Do this week
For one product, calculate gross margin as a share of your revenue and contribution margin after shipping, fees and promotions, and note the gap between them.