The Pitch: Red Drop

Introduction

• Host: Josh Muccio
• Topic: Consumer product success in venture capital
• Highlight: Success of consumer products like Aunt Flo, Fight Camp, Pepper
• Mission: To prove that consumer products are viable investments

Key Participants

• Monica Williams: Founder of Red Drop, a company focused on feminine hygiene products for tweens
• Investors:
  • Elizabeth Yin (Hustle Fund)
  • Charles Hudson (Precursor Ventures)
  • Pascal Unger (Focal VC)
  • Beck Bamberger (Bad Ideas Group)
  • Mac Conwell (Rare Breed Ventures)

Red Drop Pitch

• Founder: Monica Williams
• Company: Red Drop
• Product: System of products and education for feminine hygiene focused on tweens
• Market: Aiming to capture part of a $6 billion market
• Revenue: $5 million since 2021, $3 million in the last year
• Funding Goal: Raising $500,000 seed round

Product Details

• Target Market: Tweens experiencing their first period
• Products Included:
  • Size-appropriate tampons and pads
  • Educational materials
  • Hygiene products
  • Stress ball shaped like a uterus
• Marketing Strategy:
  • Directed towards mothers via social media
  • B2C and school sales channels

Business Model and Metrics

• Direct Margin: 80%
• Gross Margin: 65%
• Cost to Produce: $5 per kit
• Sale Price: $37.99
• Customer Acquisition Cost: Around $20
• Average Order Value: $40
• Subscription Model: Newly introduced

Challenges and Strategy

• Omni-Channel Strategy: Balancing direct-to-consumer, B2B, wholesale, and retail
• Competition: Navigating a space with few tween-focused competitors
• Vision: Expand to cover the full period experience from tweens to older teens
• Potential: Aiming to become a major brand in feminine hygiene

Investor Feedback

• Interest: Investors impressed by product and sales
• Concerns:
  • Competition
  • Retail distribution challenges

Outcome

• Mac Conwell's Investment: Committed $50k during the pitch
• Feedback for Monica:
  • Need for a bold, audacious vision
  • Encouragement to raise more than $500k

Post-Pitch Reflections

• Monica plans to pitch more audaciously
• She feels more confident after the pitch
• Working on expanding retail and strategic partnerships

Conclusion

• Investment Landscape: Consumer products, though challenging, can offer significant returns
• Monica's Path: Continues to navigate fundraising and strategic growth

Additional Notes

• Industry Insight: Discussion on the challenges faced by minority entrepreneurs in pitching and VC spaces
• Future Plans: Monica aims to expand Red Drop's market presence and product line