Every person with a great idea has wondered how to get the capital to fund it. For those among us who aren’t independently wealthy, have family to fund our ideas and couldn’t possibly either get the loan or borrow enough from a bank to fund our dreams – there’s venture capital. But, being funded by a VC doesn’t come easy. We spoke to Austin-based Springdale Ventures co-founder Genevieve Gilbreath to learn more about what they look for in companies they invest in, why they chose Austin as homebase and more.
How and when did Springdale Ventures start?
My co-founder Dan Graham and I both built consumer businesses and repeatedly observed a shortage of early-stage strategic capital for emerging brands and identified a substantial opportunity in early-stage consumer investing. So, in 2019, we joined forces to launch our own fund, Springdale Ventures, and are now investing out of our second fund.
What do you look for in brands you invest in?
I often say that winning at early-stage consumer investing is similar to opening a combination lock. Does the brand have the five or so key elements necessary to unlock a unicorn? With early-stage consumer brands we scrutinize the quality of the product, look deeply at the CEO and founding team and we gauge how attuned the team is to consumer feedback from the target market when building the brand and iterating on products. We also assess whether the product category is ready for disruption and if the addressable market is substantial enough. Investors will also always consider the presence of a clear exit strategy.
How do you discover most of the brands you invest in?
At Springdale, we see over a 1,000 deals a year. We're deeply integrated into the consumer sector and our extensive network combined with our proactive approach helps us uncover and support founders and brands that promise and deliver innovation and make life better for consumers.
What is your average check size?
In December 2023 we closed a $40 million Fund II to invest in early-stage consumer brands across the food, beverage, pet, health, and beauty sectors. Our focus is early stage consumer brands at seed stage up to Series A, with an average check size of $1 million.
What percentage of your brands are Austin-based?
Thirteen of our 46 brand partners, so 28 percent, are Austin-based and many more have key team members here, reflecting the city's burgeoning status as a hub for creativity and entrepreneurship. It's not just about the location; it's about being part of a vibrant, innovative ecosystem that Austin embodies.
What are some brands you’re invested in?
There are so many brands that we’ve invested in that we are excited about. We’re proud to have local portfolio companies like Beatbox, Literati, First Day, Eterneva, Fitjoy, Maev, Atlas, Canteen, Maxine’s Heavenly, and Mosie Baby. Some of the biggest brand names are Goodles and Mr. Beast’s Feastables. Most recently, we’ve invested in the Asian-inspired hard seltzer company Nectar, whiskey brand Big Nose Kate, BloxSnacks, a kids’ snacking brand partnering with leading YouTube creators and Zero Proof.
What advice do you have for start-up brands looking for investors?
My advice is centered on keeping your message clear, simple yet passionate and to focus on building a solid business foundation. Understand your numbers, ensure your growth is sustainable and strategically driven, and remember, investors are looking for a strong business model, a capable team, and a clear vision for growth, not just a great product!
Why do you like about being based in Austin?
The city's dynamic, innovative ethos perfectly aligns with what we stand for at Springdale. Austin's culture, coupled with its emerging reputation as a nurturing ground for startups and entrepreneurs, makes it an ideal base for a venture capital firm that thrives on innovation and transformative growth.
What do find most satisfying about your job?
Witnessing the transformative journey of the brands we support. I love seeing these brands evolve, adapt, scale and make a real connection with consumers, backed by innovative products and sustainable business models.
Springdale donates 1 percent of profits to Naturally Austin, can you share a bit about what they do?
It’s a testament to our dedication to nurturing not just businesses but also the broader ecosystem. Naturally, Austin focuses on building a collaborative community that supports the growth of sustainable, natural, and healthy consumer brands in Austin, mirroring our holistic approach to business and community development.
Anything you would like to add?
In essence, Springdale Ventures is more than a venture capital firm. We are on a journey to nurture growth, innovation, and community, deeply rooted in the vibrant spirit of Austin and driven by a commitment to transforming the consumer brand landscape.
Austin's culture makes it an ideal base for a VC firm that thrives on innovation.
Winning at early-stage consumer investing is similar to opening a combination lock. Does the brand have the five or so key elements necessary to unlock a unicorn?
"We are on a journey to nurture growth, innovation, and community"