Charles from Precursor Ventures says venture capital is returning to consumer startups after pulling back. The real problem with consumer businesses is they lack defensible moats because they're too simple. He expects money to concentrate in obvious categories, which could finally deliver better products.
We remain bullish on consumer even when so much of venture capital was running away from the industry. What, Charles, do you think other investors are seeing now, or maybe signals of, that they hadn't seen before?
In some ways, consumers always had this problem of differentiation and moat. Most things you could build in consumer are relatively lightweight, simple experiences. The, the real knack is like, how do you find an audience? And so I think we will probably see hyper-concentration in some of the obvious categories to consumer. And I hope that that ends up producing some really great experiences for end users.
