Investor interest in consumer tech and CPG is partly driven by the potential of artificial intelligence (AI). Highlight's co-founder and CEO, Dana Kim, noted that investors were keen to understand the role of AI in her product testing startup. She explained that while AI is a disruptive technology, it cannot replace the need for solid data, such as determining which version of a product tastes better.
Key takeaways:
- Consumer tech and consumer packaged goods (CPG) companies, such as Keychain, Harmonya, Highlight, Ramani, SupplyPike, Vividly and Turing Labs, have attracted significant venture capital investment in the past year.
- Investor firms focused on consumer and CPG, including VMG Catalyst, Alethia and Humble Growth, have also received funding.
- Many of these capital-worthy companies fall into the category of enablement, helping CPGs to improve their businesses, as traditional CPG products alone aren't necessarily VC worthy due to changing consumer tastes, limited grocery shelf space, and the challenges of e-commerce.
- Investor interest in consumer tech and CPG may be driven by excitement around artificial intelligence, as evidenced by the fundraising experience of Highlight's co-founder and CEO, Dana Kim, who noted that investors were comforted by the fact that her company was not being disrupted by AI and that solid data was key in the face of disruptive technology.