SALT LAKE CITY, March 31, 2022 (Newswire.com) - Pitted Ventures is launching a $50 million fund to invest growth capital into emerging consumer brands. The fund will focus on bridging the funding needs of consumer product companies that are between seed funding and Series A investment rounds. The private fund manager offers a differentiated approach by providing less-dilutive capital and an ecosystem of complementary services across e-commerce channel management, logistics and fulfillment, enhanced data analytics, and corporate infrastructure support. These mission-critical services are offered through Pitted Ventures affiliates, Pitted Labs and Pitted Logistics. Both of these companies are based in Salt Lake City and work with numerous consumer brands in e-commerce channel management, advertising, and logistics services, including fulfillment and warehousing. To round out the services provided, the private fund manager is partnering with Nimbl, a cloud accounting services provider, to provide CFO services, corporate accounting, financial reporting, and general tax advice to the fund's portfolio companies. Nimbl works with high-growth businesses across multiple industries, and its Nimbl Commerce division specifically serves the consumer products space. Both Pitted Ventures and Nimbl see strong benefits to this partnership, which adds value by standardizing financial data, streamlining financial reporting, and mitigating risks for investors through enhanced sharing of financial information.
Shane Rowley, Co-founder and President of Nimbl, commented, "We are excited about this partnership with Pitted Ventures. Our track record of working with high-growth companies and exceptional customer service is the perfect partnership for Pitted Ventures, its consumer brand companies and their founders." Greg Russell, Managing Partner of Pitted Ventures, stated, "We chose Nimbl because of their unwavering attention to client service, an excellent reputation for providing cloud accounting services to high-growth companies, and their commitment to the consumer products segment."
Pitted Ventures believes there is a need for a services-centric partner in the alternative capital space that, instead of only selling financial capital, also has a distinct focus on consumer brands, offers mission-critical services, and expands founders' bandwidth. Tyler Allgaier, Founder and CEO of Pitted Labs and Pitted Logistics remarked, "These founders want more options to remain actively involved and economically aligned with their brands, as opposed to having to engage in a highly dilutive capital round or an outright sale when they are not fully ready." Allgaier added, "We provide a highly competitive alternative for emerging brands compared to brand aggregators and the wholesale-to-retail platforms, creating a unique environment for founders to stay engaged and accelerate the growth of their brands."
The private fund manager is also establishing a small, diverse group of brand advisors that will serve as readily-available operating resources for the fund's portfolio companies. Bryan Guadagno, a brand advisor and CEO of It's Skinny, commented, "We want to offer our companies and their founders a best-in-class group of operating executives that have dealt with similar challenges and have built successful consumer brands for their customers and investors."
Pitted Ventures plans to help founders fill funding gaps that exist for consumer products companies between seed funding and Series A and B investment rounds. While the growth and buyout stage funding needs of consumer products businesses are adequately covered by incumbent sponsors, earlier stage capital needs are persistently underfunded due to a fragmented investor base consisting mostly of angel investors and family offices. Moreover, earlier stage consumer products businesses frequently face operational headwinds from a lack of expert guidance and value-added services. As a result, seed and Series A stage consumer brands often struggle to raise capital from institutional and strategic investors in spite of compelling products, markets, and revenue traction.
The private fund manager believes the current volatility in public equity markets will likely carry over into private markets, resulting in higher costs of equity. Even while private companies continue to have revenue growth, this volatility may encourage more emerging and growth-stage companies to seek alternative financing that avoids dilution at lower equity valuations.
COMPANY AND MEDIA CONTACTS:
Robert Clark, Head of Business Development
Source: Pitted Ventures LLC