Welcome to Due Diligence with VMG Partners, where we talk to founders, operators, investors, journalists, and more. If you’re new around here, Due Diligence launched at the start of 2024 with the goal of bringing infotainment – aka informative entertainment – to your inbox. We’d love to hear what you think in the comments! Here’s the download:
Take Five 🖐️ w/ Good Face Project Co-Founder & CEO Iva Teixeira
Two Truths & A Lie 🙊
On-the-Record w/ Forbes Senior Contributor Douglas Yu
Women in Consumer Take Anaheim 🌴
🎯 Teaming up with Target
🚨 This Just In
✈️ Where To Find Us This Spring & Summer
In The News 🗞️
Without further ado...
Take Five 🖐️ w/ Good Face Project Co-Founder & CEO Iva Teixeira
Operators are a wealth of knowledge that many want to tap into for their expertise. But they're often booked and busy. That's why we're sitting down with VMG portfolio leadership teams to get the inside scoop about their journey and how we can learn from their experiences. First up: Iva Teixeira of VMG portfolio company the Good Face Project: a formulation, regulatory compliance and innovation software used by hundreds of leading cosmetic companies to build safe, compliant, transparent and effective products.
Iva Teixeira [left] w/ Co-Founder & CTO Lena Skliarova-Mordvinova [right]
If you could turn back time, what would you tell your younger self during the first year of your business?
My entrepreneurial journey began well before Lena and I co-founded Good Face. It started the moment I made the decision to leave Bulgaria at 19 with just $3,000. Reflecting on my journey thus far, I only have love and encouragement for my young entrepreneurial spirit.
What’s the best piece of advice you’ve received to date? And if you’re open to sharing, who gave you that advice?
Just because something has already been done, it doesn't mean it's been done well. Do not be afraid to be better, think better, do better." My co-founder, Lena, said this to me early on, when she and I had just met and were thinking about partnering to create Good Face. It's an honor to be working shoulder to shoulder with her. The spirit of her advice is always with me.
You’re constantly faced with tough decisions as an entrepreneur. Is there a misstep that you look back on and think “If given the chance, here's what I'd do differently."
NOTE: Iva Teixeira was not compensated for this interview. Her commentary is included for educational purposes only and does not reflect the investment position or theses of VMG Partners.
Two Truths & A Lie 🙊
Wayne Wu was featured on Kevin Rutherford’s C.E.O (Chief Eternal Optimist) podcast, where he talked about leadership principles he lives by and looks for in entrepreneurs. During his interview, we learned three truths and a lie about Wayne himself.
🏀 He was dunked on by Rashard Lewis during his AAU basketball days.
♟️ He successfully learned how to play chess at the age of three.
🙅♂️ He hates horseradish and wasabi.
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Check out the comments section for the correct answer.
On-the-Record w/ Forbes Senior Contributor Douglas Yu
We are thrilled to have Douglas join us for our first “On-the-Record" conversation. After all, it's not every day that we get to flip the script and ask a reporter our burning questions – it's typically the other way around.
For those who don’t know Douglas, he's an entrepreneur with unique insights on CPG gained from his years of experience reporting on the industry as a business & financial journalist at Forbes, where he leads coverage of exclusive fundraising, M&A, and IPO news. Douglas lives and breathes the Food & Beverage space, making this exclusive conversation one you don't want to miss.
Natural Products Expo West is, for lack of a better phrase, your Super Bowl. We’ve got two questions for you:
What was the best thing you ate? Where do I even start among a sea of deliciousness?!Honestly, as many Expo attendees were probably spoiled with thousands of candies, snacks, and beverages, I’d highlight frozen pizza brand PORTA — it was the best ready-to-cook pizza I’ve ever had that delivers restaurant quality flavor.
What’s the most underrated trend in the space? Or put differently, what are people not talking about enough? Although protein alternatives have seen a decline in demand over the past year exemplified by decreasing sales of plant-based meat, certain sub-sectors actually fare well such as creamer (+10%), bars (+7%), and baked goods and other desserts (8%) — annual growth in dollar sales between 2022-2023, according to IRI data. Dairy-free milk has way higher US household penetration compared to plant-based meat: 44% vs 15%, showing how continued uptick in the former sector. nutpods is a perfect example!
NOTE: Douglas Yu was not compensated for this interview. His commentary is included for educational purposes only and does not reflect the investment position or theses of VMG Partners.
Women in Consumer Take Anaheim 🌴
One of our favorite traditions at Expo West is partnering with BraunHagey & Borden and Women on Boards Project to bring together the brilliant women behind consumer brands. Just a few years ago this dinner started as a small, intimate gathering among a few friends, led by VMG’s late co-founder, Kara Roell. Fast forward to 2024, we brought together 200+ women in the field, and we were proud to award Partake Foods’ Denise Woodard with the Kara Roell Achievement Award for her commitment to leadership, mentorship, and continuous improvement.
🎯 Teaming up with Target
We’ve long been dreaming of the day when Target, VMG, and emerging food & beverage brands would come together under one roof. That dream came to life in April at the Target Newness Summit, featuring 56 food and beverage brands, 75+ members of Target's retail team, and 24 members of KMG’s team. Here are a few key learnings about what it takes to become a supplier at Target:
Don't fall victim to the common brand pitfall of overpromising and underdelivering.
Come to terms with your budget and embrace it. Many brands launch in retail with a tight – read: small – budget (and that's okay!).
Get creative with how you promote your product in Target stores. Human connection reigns supreme when launching a brand on their shelves.
Target's shelf space alone doesn't make a brand successful, making it more critical that brands have a digital growth plan in mind.
Prioritize affordability. Grocery retailers like Target are on an affordability journey, and brands need to follow suit.
Our website now includes our Approach, which aims to unpack how we interface with the broader consumer and technology ecosystem, our investment criteria, and how we bring it all together.
Logos provided are included for illustrative purposes only and do not include all current and realized VMG investments. Please reach out for a complete list.
We also officially launched The Parity Collective, an investment initiative focused on investing in founders of color across the consumer industry. Through the Collective, VMG’s Alisa Carmichael and Fifteen Percent Pledge’s Aurora James are teaming up to identify, invest in, and grow BIPOC-founded consumer brands, a community that is often over-mentored and under-capitalized.
Aurora James [left] & Alisa Carmichael [right]
A few key factors that Alisa and Aurora are looking for in potential Parity Collective investments:
High-growth, or potential for high-growth, branded consumer products and services
Demonstrated proof-of-concept
A loyal and growing customer base (show us the numbers!)
Strong teams that are eager to leverage outside expertise
The information contained herein is intended for informational purposes only and is not investment advice. Under no circumstances should any material herein be used or considered as an offer to sell or a solicitation of any offer to buy an interest in any securities or investment fund. Any specific company listed or discussed is not intended to be representative of any or all companies purchased, sold or recommended for VMG’s advisory clients. For a full list, please visit our website. One should not assume that all investments in the companies identified are or will be profitable. Third-party or hyperlinked content within the material is believed to be accurate as of the date of this material but VMG is not responsible for the accuracy or continued accuracy of third-party or hyperlinked content.
Two Truths & A Lie. Which one is the lie?
♟️ He successfully learned how to play chess at the age of three.