VC Investing in the Next Generation Consumer

EMS:
Absolutely. So to kick off the conversation, tell us a little about the firm and how you got to where you are today.

ML:
Yeah, so the genesis of the firm was in 2020, at the start of the pandemic. My partner Matt, started the firm actually with former musical.ly, now TikTok execs. And we talked about doing something together to invest in companies that were consumer focused and that cater to a generational shift. So I joined Progression a few months later, after almost seven years in corporate venture. And our thinking at Progression is that things like historic events, technological, economic and social shifts give rise to the NextGen consumer.

EMS:
Great. So as a follow-up Mark, given your focus on investing in the next generation consumer, love to hear your overall outlook for the space.

ML:
Yeah, Elana, a lot is happening. For example, right now we have technology ships, AI, large language models, Web3, crypto and economic shifts, inflation, rising costs of living, younger consumers in how they want to work in the future of work and social and cultural shifts. So like diverse demographic in the US, younger consumers preferring different food and different media consumption. So I'd say there's a lot of opportunity for us at Progression.

EMS:
Great. It definitely is a very interesting and exciting time right now with what you're doing, Mark. So based on that, love to hear some of the specific greatest opportunities you see in your strategy and why.

ML:
Yeah. Well, I think the technologies I mentioned are going to cause shift in consumer behavior. At Progression we like to say we do invest in companies building for how the consumer will play, shop, and live. So I can't say for certain which technology will produce the largest market. Obviously a lot of buzz around AI right now, but these technology advances and everything I've mentioned are going to change. All aspects of our lives from how we shop to how we receive healthcare.

EMS:
Mark, on the other hand, what are some of the greatest challenges you face when it comes to your investing strategy and why?

ML:
So as I'm talking now about this, the challenges right now really seem to stem from what's happening in the economy. The macro environment is really challenging and inflation is making it really difficult for investments to be made across the board. And you compare this to where we were in a zero interest rate environment. So I think that's the elephant in the room. I think everyone from investors, tech entrepreneurs, to even small mom and pop shops to publicly traded companies, they're all going to need to figure out how to do more with less. And that could mean a slower pace. And really in our business for the founders and companies that we look at, probably need a higher bar than what we saw in the last two years in order to receive some sort of investment from VCs nowadays.

EMS:
Mark, to shift gears a bit, ESG and DEI are top of mind for the investment industry and would highly welcome your thoughts on how your firm is addressing these important topics.

ML:
Awesome. I'm glad you asked because I think it's pretty much weaved into our investment perspective. We think it's important and we think that literally is a next gen consumer. You had to consider diversity since consumer preferences have fragmented from what we think. You see large companies or marketing consumers nowadays, how their marketing is different from how this was 20 years ago. And I think as of today, more than half of the companies we partnered with have their executive teams from diverse backgrounds. And to us that's important because they are the ones that firsthand know the consumer that they want to serve.

EMS:
Mark, we've covered a lot of ground today and wanted to see what your future plans are. Any final thoughts you'd like to share with us?

ML:
We plan to be here for a long time and build an awesome franchise at Progression. I'd say if you want to know what we're up to and what we're looking to do, give us a follow on Twitter or X or on LinkedIn.

EMS:
Mark, I wanted to thank you so much for sharing your perspective with our listeners.

ML:
Thanks for having me, Elana. Really appreciate it.

EMS:
And thank you for listening to the EisnerAmper podcast series. Visit eisneramper.com for more information on this and a host of other topics. And join us for our next EisnerAmper podcast when we get down to business.

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