dmg ventures, the investment arm of DMGT, has announced a strategic initiative to bolster the recovering consumer start-up ecosystem with the launch of two new funds totaling £50 million. This commitment reflects dmg ventures’ focus on supporting exceptional entrepreneurs in the early and middle stages of their start-ups in both Europe and the United States.

Launch of New Funds

The newly established funds comprise a £25 million Headline Fund and a £25 million Scale Fund. The Headline Fund aims to accelerate the firm’s existing strategy of investing in consumer start-ups from Seed to Series A funding. In parallel, the Scale Fund is designed to provide established business-to-consumer (B2C) companies with the resources to expand their influence and impact by collaborating with DMGT on marketing initiatives.

Key Promotions

In conjunction with this funding announcement, dmg ventures has made two key promotions within its ranks, elevating Rachel Muzyczka and Taos Edmondson to Partner positions. Rachel has a noteworthy investment track record, having previously supported brands such as the eyewear company bloobloom, the jewellery label Fenton, and the beverage business Waterloo. Meanwhile, Taos, a co-founder of the start-up pitch platform Focal, has spearheaded investments in various innovative companies, including the toothbrush brand SURI and the mobile network Honest Mobile.

Commitment to Start-Ups

Since dmg ventures was established in early 2018, it has backed 29 disruptive early-stage consumer brands, including the stationery brand Papier and the investment app Plum. The firm plans to accelerate its investment pace, targeting six to ten investments annually, as it gains confidence in the consumer sector and its strategic vision. Dmg ventures specifically seeks out consumer-facing companies that resonate with DMGT’s audience. After investing, the firm’s dedicated media team provides strategic insights, consumer data, and support for optimizing marketing budgets through DMGT’s extensive media channels.

Trends Shaping Consumer Behavior

The firm has identified three key trends poised to transform consumer behavior: the emergence of generative AI, the increasing emphasis on environmental sustainability, and the growing consumer desire for memorable experiences. These trends will guide dmg ventures as it identifies investment opportunities that align with modern consumer values.

Notable Investments

Dmg ventures is excited to announce its first two investments from the Scale Fund, which include the mindful beverage brand TRIP and the innovative cacao brand Blue Stripes. TRIP has recently been recognized as the UK’s fourth fastest-growing company by The Sunday Times, establishing itself as the leading brand in the functional beverage market. This sector, characterized by drinks that offer health benefits, is valued at £166 billion globally and is projected to grow at a rate of 7.5% annually to reach £238 billion by 2029, according to Mordor Intelligence.

The TRIP team has effectively built a compelling brand centered on health and mindfulness while strategically leveraging its marketing budget to achieve distribution in 30,000 retail locations. Dmg ventures is eager to partner with TRIP to further accelerate its growth in the UK and facilitate its expansion into additional key markets.

Blue Stripes: Innovation in the Cacao Industry

Blue Stripes, based in the US, is addressing waste in the chocolate industry by upcycling the entire cacao fruit into a variety of nutritious products, including cacao water, chocolate bars, trail mixes, and granola. Traditional chocolate manufacturers typically discard about 70% of the cacao fruit, and Blue Stripes is working to minimize this waste. The brand has already gained significant traction, securing placement in over 1,500 stores across the US, with a focus on premium retailers and now expanding into mainstream supermarket chains.

A Unique Approach to Investment

Through the Headline Fund and Scale Fund, dmg ventures intends to approach investments innovatively. Leveraging its extensive understanding of consumer behavior, the firm is open to investing outside the traditional boundaries of consumer venture capital, targeting opportunities across various sectors, including consumer software, consumer goods, and sports. This broad approach is illustrated by recent investments in professional padel tournament Hexagon Cup and the toothbrush brand SURI.

Dmg ventures prides itself on its distinctive model that combines venture capital with extensive media support through DMGT’s publications, which reach approximately 160 million engaged consumers each month. This strategic alliance enables the firm to offer tailored financial solutions that include a mix of cash and discounted media budgets, addressing the specific needs of each company it supports. As social media marketing evolves, dmg ventures recognizes the growing effectiveness of its media brands as tools for developing mass-market consumer brands.

In conclusion, dmg ventures is entering an exciting new chapter by increasing its investment in innovative consumer brands while enhancing its collaborative approach with DMGT’s media outlets. The launch of the Headline Fund and Scale Fund marks a significant commitment to advancing growth within the consumer sector. The promotions of Muzyczka and Edmondson to Partner positions reflect the firm’s dedication to cultivating talent and expertise within its team. As dmg ventures continues to navigate the shifting landscape of consumer behavior, it remains focused on supporting founders who are leading the way in creating impactful brands.