When I told my investors we were investing in Casper they laughed at me. Literally. In the first month, they destroyed sales forecast and were on a 12m run rate. What I learned from Casper is disruption is scary AND try to find companies with built-in demand for their product. Just like I felt Casper would disrupt the mattress shopping experience in 2014, I also invested in companies who failed to execute and it went out of business shortly thereafter because their pipeline didn’t materialize to sales. Sometimes partnering with influencers like Casper can supercharge brand awareness and sales. Look at FashionNova, did over 170m in sales! The scariest part of investing is losing money and being wrong. Or being right about the business but choosing the wrong management team. When your own money is on the line and/or money from people that trust you how do you know for sure if this model works and the pipeline is real?
1) wait and see if they deliver
2) call customers
3) Diligence pre-orders and determine what’s real vs hope.
Best way to get higher valuations is to hack customer acquisition!!