DNVBs: buzz word or a new class of assets?

Date: March, 5th, 2020

Clipperton releases today a research report dedicated to the analysis of the DNVB phenomenon.

DNVB, standing for Digital Native Vertical Brands, is a term that gained popularity, following the rise of a new generation of Consumer Internet businesses that have established new business standards over the last 10 years.

What is the current landscape of this specific category in Europe? Which key drivers fueled these players’ growth and why is their operating model so virtuous?

What investment panorama can be drawn on this segment and what challenges lie ahead for the growth of these players?

What financing trends can we anticipate from 2020 onwards for this category?

Clipperton intends to provide quantitative and qualitative insights regarding these questions in its new research report dedicated to DNVBs, highlighting its expertise on E-commerce and Consumer Tech areas (references: AramisAuto/PSA, Videdressing/LeBonCoin, Vestiaire Collective, Quitoque/Carrefour, FoodChéri/Sodexo, Withings,etc).

Please complete the form below to access the full report

Key highlights of this study:

  • DNVBs are a wide-spreading phenomenon in the Direct-to-Consumer world visible accross various consumer categories (home furnishing, appareil, footwear, ccessories, personal care, food & beverages,etc).
  • The surge of this category has been powered by new consumption behaviors of Millenials, social networks as well as cloud-based tools and processes easing the launch and management of a retail brand through a strong focus on data and allowing a disintermediated relationship with consumers.
  • DNVBs rapidly made inroads, carving-out meaningful market shares into their respective markets and therefore attracting significant funding money with a clear momentum in recent years ($3.3bn flowing into segment in 2018).
  • However, DNVBs need to solve major challenges to reach a critical size: rising CAC, difficult internationalization, difficult omnichannel development, risky product expansion.
  • Clipperton anticipates that the consolidation wave of DNVBs is yet to happen:
    • While nice exits can be observed for local leaders with both corporates and PE funds at hefty revenue multiples, the few IPOs carried out so far obtained mixed results.
    • From 2020 onwards, we expect more selected early-stage financings focused on new verticals, more growth financings focused on proven business economics, more consolidation play with a nice mix of exits at high revenue multiples and undisclosed ones and few IPOs.

Please find the executive summary on this page or download it below in the following languages:

The key findings of this study will be presented by Clipperton team in the nearest future. For more information regarding the study and/or registration to the event, please contact: dnvb@clipperton.net

About Clipperton

Clipperton is a European independent corporate finance advisory firm exclusively dedicated to the Technology space, advising high growth companies on M&A transactions, debt financings and equity offerings. With offices in London, Berlin, Munich and Paris and an international reach, Clipperton is a European leader in Technology financial advisory. Over the past 17 years, the team has successfully completed more than 300 high profile transactions globally.

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