Why We Invested: Vanik

Consumers deserve a world where their favorite retailers carry their favorite brands. Brands’ survivals depend on it.

Digital ad pricing (up over 200% in the last decade), GDPR, changes in Apple’s iOS permissions, Yahoo and Google’s new sending requirements and a never-ending host of other changes make digital customer acquisition strategy a moving target. One thing that technology cannot change, however, is consumers connecting with brands in the real world. Everyone has had the experience of seeing a new brand on a shelf and buying because they connected with it. This fact is the reason why TBD Angels invested in Vanik.

Vanik streamlines retention for brands selling through wholesale channels by automating onboarding, reorders and loyalty. Unlike marketplaces or distributors that charge 15%+ of each order while controlling the end relationship, Vanik provides brands with a modern, DTC-like experience. Retailers avoid the painful friction of portals behind a login and can seamlessly manage inventory from their email. Brands are empowered to build retailer relationships that maximize the probability their customers buy again and again at their favorite retailer. Just as Klaviyo has allowed brands to own their relationship with consumers, I believe Vanik has the potential to give them the power to own their relationship with retailers.

In addition to a strong product and market, a solid investment opportunity needs a best-in-class team. I’ve had the pleasure of getting to know Vanik’s founders Dan Cohen and Hunter Stevens over the last several months, and believe they are the best possible founding team for this opportunity. Dan and Hunter both have worked across the DTC ecosystem (combined, at Shopify, Klaviyo, Converse and Upscribe) and have a unique appreciation of the brand-retailer relationship. Dan has his own sock brand (Neon Bandits) and has lived the aforementioned CAC problems and the challenge of building seamless re-ordering and communication with retailers. Dan and Hunter have introduced Vanik’s solutions to a variety of different businesses, including Onesto Foods who has seen the velocity of reorders increase 2x since they started using Vanik, while saving the team 10+ hours a month. The founders have also spent the time and effort getting to understand the unique problems of retailers, who love their easy-to-use solution. The two founders exemplify living the experience of customers and are relentless with their product focus.

Dan and Hunter’s vision spoke to the entire TBD group because it benefits the entire e-commerce and physical commerce ecosystem. If Vanik succeeds:

• Consumers gain easier access to the brands they love
• Brands improve margins, reach and retention
• Retailers stock products that drive customer loyalty and repeat business

TBD’s investment in Vanik spans across 19 individual investors representing a range of operators and professional investors. I am excited for the potential of TBD’s nearly 300 members to support Vanik in its mission to empower brands to own their relationships with retailers. I couldn’t be more excited for Vanik to be part of the TBD family. If you’re interested in engaging with the company, please check out their deck here.

Ben Brostoff is a member of TBD Angels. He works at Klaviyo and writes about investing.