Venture investors like to invest in overarching industry themes and trends. Preferably we fund companies that dare to change the status quo. These companies fundamentally challenge incumbents and traditional business models. Their impact unfolds beyond a specific product or service, delving deep into wider societal shifts and movements. Following the record year of our portfolio company momox, marked by a staggering 150 million euros in revenue, we take a closer look at the rise of the recommerce industry.
If you haven't received our initial newsletter last December, you can find it here.
Best regards
Jan-Gisbert Schultze
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RECOMMERCE: THE NEW OLD
Recommerce giants will redefine the multi-billion dollar used goods market
Recommerce breaks up the traditional model of consumption (brands produce, and consumers buy, use and discard) and taps into a multi-billion-dollar market by institutionalizing second-hand, resale, vintage and thrifting businesses. Over the last three years, the online resale market for fashion in the US alone has grown 82 per cent and is expected to grow significantly each year through 2025, making it a $25 billion market. According to Deloitte, the used smartphone market grows five times faster than the overall smartphone market. Growth in the resale market is expected to outpace all e-commerce and retail sectors in the coming years.
Mobile marketplaces, online platforms, exchange schemes and novel brand buy-backs offer new opportunities for consumers to ‘trade in to trade up’, while addressing ethical and environmental concerns and alleviating financial burdens. The ownership of a product is not limited to the original buyer (from cradle to grave) anymore, but extends over its full lifecycle with different owners having the maximum benefit.
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Chefs Plate highlights sustainability focus. After announcing a $6 million Series B in September, Toronto-based Chefs Plate announced that it’s closed the second tranche of its Series B thanks to its commitment on food sustainability; the tranche was closed by InvestEco Capital’s Sustainable Food Fund II. BetaKit.
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Mobify receives follow-on financing. Mobile customer engagement leader Mobify has announced the conclusion of a record-breaking 2016 and an additional investment led by new investor BDC Capital with participation by Series A investor Acton. PE Hub.
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Etsy introduced its first new marketplace: Etsy Studio will guide users to find and buy all the materials needed to make the do-it-yourself projects they see on the site. Bloomberg covered the news: Bloomberg.
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Recommerce giant momox is on the rise: CEO Heiner Kroke spoke to German business publications Handelsblatt and Börsenblatt about building a recommerce champion and reaching 150 million euro in revenue. Furthermore, momox has appointed Christian von Hohnhorst as its Chief Financial Officer. Handelsblatt, Börsenblatt, AIMGroup, One to One. |
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Tictail co-founder and CEO Carl Waldekranz gave the low-down on his business and ecommerce retail strategy in Forbes magazine. Carl also participated in a lovely panel about the Magic of Sweden at DLD Conference in January. You can find the video of the discussion on YouTube.
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Plus-Size retailer Eloquii launched its first pop-up shop in Arlington, VA. It's the online retailer's first venture with a brick-and-mortar shopping experience. Washingtonian.
MyOptique: Luxottica / Essilor billion euro merger. French lensmaker Essilor, who bought MyOptique last summer, now announced the takeover of Luxottica Group, the maker of Ray-Ban sunglasses, for about 22.8 billion euro ($24 billion) in stock, combining the largest manufacturer and retailer in eyewear. Bloomberg. |
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ON STAGE.
Jan-Gisbert Schultze discusses the ins-and-outs of growth equity. Is growth equity blurring the lines and bridging gaps? Video interview from SuperReturn on YouTube.
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FINDING FUNDING.
In 2017 more capital will be available than in 2016 or 2015. But there will also be increased competition for financing. Jan-Gisbert Schultze gives advice for founders. WirtschaftsWoche Gründer.
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ON STAGE.
Acton partner and OnVista Group founder Fritz Oidtmann shared his story at Capital on Stage conference in Munich. Having experienced the ups and downs of establishing a business himself, he has a great deal of respect for the challenges faced by startups today. Video on YouTube.
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INTERVIEW.
Sweet poison Corporate Venture Capital: Acton partner Jan-Gisbert Schultze discusses the challenges corporates face in developing a digital strategy. How can they benefit from VC insights and startup innovation? Deutsche Startups.
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FEMALE FINTECH INFLUENCERS.
Our colleague Aline Vedder ranks among the top female fintech influencers in Germany, Austria and Switzerland. Here’s the full list: Barkow Consulting.
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REJUVENATING CURE.
Fabian Gruner is currently supporting the investment team as a Visiting Associate and brings a myriad of fresh ideas. As a fast learner, he is quickly picking up the necessary hard and soft skills (liquidation preferences, table football) for a successful career in the industry.
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MILESTONES.
We celebrated the 60th birthday of Acton co-founder Paul-Bernhard Kallen as well as the 50th birthday of our General Counsel Benedikt Sudbrock this month with a table football tournament, won by Team Rhineland consisting of Paul-Bernhard Kallen and Jörg Wernet.
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UPCOMING CONFERENCES.
Jan will attend the Invest Europe Investors' Forum in Geneva, 29./30.3.
Frank will speak at a panel at Exec Fintech in Berlin, 5./6.4.
Marcus will attend the investor pitch panel at Gründerszene Spätschicht in Hamburg, 6.4.
Aline & Dominik will attend a panel at Startup Camp in Berlin, 7./8.4.
Frank will attend Vizions by Zalando in Berlin, 20.4.
Fritz will attend Startups meet Investors by Ernst & Young in Düsseldorf, 9.5.
Frank & Marcus will attend Cube Tech Fair in Berlin, 10./12.5.
Frank & Marcus are going to be at The Next Web Conference in Amsterdam, 18./19.5.
Fritz & Marcus will attend HTGF Family Day in Bonn, 30./31.5.
Marcus will attend Pioneers Festival in Vienna, 1./2.6.
Frank will attend MoneyConf in Madrid, 6./7.6.
Dominik will speak at a panel at HEUREKA conference in Berlin, 20.6.
Aline, Christoph, Dominik, Frank, Fritz & Sebastian will attend Noah conference in Berlin, 22./23.6.
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Any questions, thoughts or comments? Specific topics that you’d like us to comment on? Feel free to drop us an email or to stop by our Munich office for coffee. |
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