By Shira Ovide.
If you’re a regular here, you know I’ve been confused about the phenomenon of not-really-tech startups achieving tech-like valuations.
I asked for some help recently from Dayna Grayson, a partner at NEA, a venture-capital firm that backs some not-really-tech consumer startups including mattress seller Casper Sleep Inc. and anti-brand online grocer Brandless Inc. She agreed it’s tough to succeed with traditional retail business models. If a startup buys jeans or blenders at wholesale prices and sells them at a markup, it can be hard to make anywhere close to tech-like profit margins or venture-like investment returns.
Read more at Bloomberg.