#123 Outlines: A Venture-Backed Shower Curtain?

Investor Reactions

The investors' initial reactions to Outlines' pitch were mixed, with some expressing skepticism about the business model. Beck Bamberger, however, stood out as a supportive partner, having already collaborated with Luke Young on media initiatives. Howie Diamond noted the potential of applying SaaS techniques to consumer packaged goods, emphasizing the value of a subscription model 1. Josh Muccio was initially hesitant but grew more convinced of the investment's potential 2.

The other investors in the room wanted to change this business entirely. They thought Luke should stop designing his own products and pivot into a replenishment service for the targets and Walmarts of the world.

--- Josh Muccio

This divergence in opinions highlights the challenges and opportunities in the direct-to-consumer market.

   

Scalability Debate

The scalability of Outlines was a major point of contention among investors. Jillian Manus criticized the complexity of the business model, suggesting a focus on a single aspect or a pivot to a logistics SaaS product 3. Luke Young defended the approach, emphasizing the importance of designing products for recycling and shipping to ensure scalability 4.

If we want to grow and scale this business significantly, if we're designing and making all the products ourselves, that's going to seriously slow us down.

--- Luke Young

The debate underscores the tension between maintaining a broad vision and the practicalities of scaling a business.

   

Unique Investments

Unique investment decisions were a hallmark of this pitch, with Beck Bamberger quickly committing $50,000 to Outlines. Her decision was influenced by the pristine presentation of the company's data room, which impressed her as being beyond typical seed-level standards 5. Josh Muccio noted the unconventional nature of investing in a shower curtain subscription, yet acknowledged the compelling consumer psychology behind it 2.

This presents, like a series c and beyond company, not a seed level company that's trying to get some capital together and make it work.

--- Beck Bamberger

These choices reflect a willingness to embrace innovative business models and the potential for significant market shifts.