#125 Locker: The Future of Online Shopping

Demographic Gap

Kristine Locker faces a unique challenge in pitching her social shopping app, Locker, to investors who often don't share her demographic. Many of these investors, primarily older males, struggle to relate to the shopping habits of Locker's target audience, which is predominantly female. Kristine notes that 85% of consumption in America is driven by women, yet her conversations with male investors often require her to explain the platform's relevance through their wives' experiences 1.

I've had multiple investors say, like, I'm gonna get my wife on this, and, like, give you feedback.

--- Kristine Locker

This disconnect is further highlighted by a term sheet incident where Kristine and a fund's managing partner had differing views on consumer shopping behaviors, leading to a mutual decision to part ways 2.

   

Valuation Challenges

The valuation and terms offered to Kristine have been a sticking point in her fundraising journey. She received a term sheet for a $5 million valuation, which she found unacceptable, prompting her to walk away and seek other opportunities 2. Kristine's vision for Locker is ambitious; she aims for it to become the go-to platform for shopping, akin to how Pinterest is used for inspiration. However, the current market conditions and investor skepticism make raising the desired $3 million challenging 3.

Raising three four years ago is different than raising three right now.

--- Unknown

Despite these hurdles, Kristine remains open to adjusting her strategy, considering smaller rounds to maintain capital efficiency.

   

Funding Strategy

Kristine Locker's funding strategy reflects her determination to succeed despite investor skepticism. She expresses a willingness to build Locker without venture capital if necessary, driven by her belief in the platform's potential 4. Kristine's approach involves proving the app's value independently, aiming to attract investors later at higher valuations.

I will raise the money on my own. I will prove you wrong.

--- Kristine Locker

This strategy is informed by feedback that more proof points are needed to differentiate Locker from other startups, emphasizing the importance of demonstrating traction and a unique formula for success 5.