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As an investing partner at M13, Brent leads investments across the firm's consumer investment themes. Prior to joining M13, Brent was an investment associate at Battery Ventures. Prior to that, he served as a strategy & corporate development associate for Samsung NEXT.

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Sarah was previously the VP of marketing and investor relations at Arlon Group and has served in IR roles at StepStone Group and Citi Private Equity. She is a public company board member, co-founded the Sustainability Investment Leadership Council, and has served on numerous non-profit boards.

Sarah Tomolonius

Partner

Sarah was previously the VP of marketing and investor relations at Arlon Group and has served in IR roles at StepStone Group and Citi Private Equity. She is a public company...

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Sarah Tomolonius | M13

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As a product specialist, Rob helps startups strategically build, deploy, fundraise, and go to market. Prior to M13, Rob has been a serial founder as the CEO of BlackSmith Studios and Pecabu, as well as acting in an interim-CMO/CPO capacity at a number of later-stage Bay Area VC-backed companies, including Cala Health, Apnicure, Neodyne & others. He is a recipient of UK Entrepreneur of the Year in 2012.

Rob Smith

Rob Smith SEO

Rob Smith | M13

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A partner and head of legal, Win has served in senior leadership roles at numerous consumer technology companies, including as General Counsel of MasterClass and early-stage startup Vessel (acquired by Verizon), as well as senior legal and business affairs roles at Hulu. A former electrical engineer, he started his legal career as a corporate attorney at Latham & Watkins

Win Chevapravatdumrong

Win leads all legal and risk matters relating to our investment activity and fund operations and provides operational and strategic support to our portfolio companies.

Win Chevapravatdumrong SEO

Win Chevapravatdumrong | M13

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Zach’s focus is on architecting systems and processes that augment the data backbone behind all of the firm’s operating systems.  He held multiple roles at Quovo (acq’d by Plaid) and Plaid, including Technical Lead and Product Manager for Plaid’s Partnerships Team.  Prior to joining M13, Zach founded a consultancy focused on data engineering and a SaaS platform for B2B Go-To-Market Teams.

Zach Naglieri

Operator

Zach’s focus is on architecting systems and processes that augment the data backbone behind all of the firm’s operating systems.

Zach Naglieri SEO

Zach Naglieri | M13

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Emma manages all things content, from thought leadership, to reporting, to social media. Prior to M13, she was the managing editor at business intelligence startup CB Insights. Other experience includes working at a fintech startup, the country’s third most-circulated newspaper, and a top 5 global insurance company.

Emma Miller

Emma manages all things content, from thought leadership, to reporting, to social media. Prior to M13, she was the managing editor at business intelligence startup CB Insights. 

Emma Miller SEO

Emma Miller | M13

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As a partner and head of operations, Lizzie leads the Propulsion team that helps propel our founders’ businesses forward. She was previously the COO of sneaker marketplace GOAT Group, CMO of Gilt Groupe, and founding partner of Brilliant Ventures.

Lizzie Francis

As a partner and head of operations, Lizzie leads the Propulsion team that helps propel our founders’ businesses forward. She was previously the COO of sneaker marketplace GOAT...

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Lizzie Francis | M13

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As a member of the investor relations team, Talitha has worked with the team to build the IR systems at M13 from the ground up. She was previously the quality control and administrative assistant for the accounting and assurance department of Lindsay & Brownell, LLP.

Talitha Wright

As a member of the investor relations team, Talitha has worked with the team to build the IR systems at M13 from the ground up. She was previously the quality control and...

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Talitha Wright | M13

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As M13's community program coordinator, Samantha aligns with M13’s commitment to creating an inclusive community through authentic experience, dedication to innovation, and creativity. Samantha was previously the development associate for outreach and programming at Rockefeller University.

Samantha Hughes

As M13's community program coordinator, Samantha aligns with M13’s commitment to creating an inclusive community.

M13SharePeople-SEO image Samantha Hughes

Samantha Hughes | M13

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As M13's brand project specialist, Generra brings her experience in operational excellence and community building from her previous time at The Knowledge House, a tech non-profit. Prior to that, Generra led project management, from enrollment and ops to data management, for Newark Public Schools. 

Generra Rodriguez

As M13's brand project specialist, Generra brings her experience in operational excellence and community building from her previous time at The Knowledge House, a tech non-profit. 

M13SharePeople-SEO image Generra Rodriguez

Generra Rodriguez | M13

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Erik is M13's accountant and has a vast background working in tech companies and the applications used in accordance with GAAP for reporting. Erik was previously an accountant at Glamsquad and Stella Connect, which was acquired by NYSE listed Medallia in 2020, which gave Erik the opportunity to oversee the finance integrations of the two companies. 

Erik Grant

Erik is M13's accountant and has a vast background working in tech companies and the applications used in accordance with GAAP for reporting.

M13SharePeople-SEO image Erik Grant

Erik Grant | M13

__I joined M13 in the very early days.__ The team had this ambition to build a different type of platform one that better matched the partnership style that entrepreneurs needed in today’s fast-changing startup environment but what was even more inspiring to me was the team’s diversity of experience and drive to make it happen.

 __We all came from backgrounds where we had to prove ourselves.__ And now, we had the chance to use these experiences to dig into all sides of an issue with a first-hand perspective.

 __And dig in, we did.__ We set out to make each part of the venture experience better. Finding entrepreneurs. Proactive involvement after investing. Communicating with our LPs. Everything.

 __Then, instead of retrofitting an existing practice__ to match today’s new investing environment, we built one from the ground up. Now, I’m excited to help execute on that vision (also known as “the fun part”).

 __M13 was built around the goal of being a trusted partner.__ Not just someone you call on once a quarter for a board meeting, or someone who simply makes one introduction to a supplier, but rather a real partner who teams up with you your successes are our successes, and your failures are our failures.

 __We’ll know we’ve done our jobs__ when our founding partners not only have successful exits, but choose us for their second venture. Their third. It’s way bigger than the “right now” for us.

 __I truly love working with entrepreneurs.__ It takes way more guts than I have to leave your stable job to build something you love, and it’s a privilege to be able to play even a small part in helping them reach their full potential.

 __I’m very fortunate to have assembled a diverse background__ in corporate M&A and venture. My previous roles have helped me develop the financial acumen and training needed to execute large and complicated transactions, but they’ve also given me the opportunity to work with hundreds of entrepreneurs and get to know their unique perspectives. 

 __When you take some time to focus on others,__ it adds invaluable perspective. Making service a priority can make a massive difference for the way you view others, your work, and yourself.

 __My best advice?__ No job title or company name on a resume can beat being happy with what you do.

Brent Murri

As a principal at M13, Brent leads investments across the firm's consumer investment themes. Prior to joining M13, Brent was an investment Associate at Battery Ventures...

M13SharePeople-BrentMurri

Brent Murri | M13

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A partner at M13, Anna was the managing director of Techstars LA and also a partner in The Fund LA. A certified executive coach, Anna has worked as a corporate lawyer, McKinsey consultant, product exec, and entrepreneur. She serves on the Advisory Board of PledgeLA and is a member of AllRaise.

Anna Barber

A partner at M13, Anna was the managing director of Techstars LA and also a partner in The Fund LA. A certified executive coach, Anna has worked as a corporate lawyer...

M13SharePeople-AnnaBarber

Anna Barber | M13

__*This is the first of a multi-part series on M13’s Future of Commerce thesis.*__ 
Changing consumer behavior has been at the center of M13’s [investment thesis](https://m13.co/article/m13s-investment-thesis-understanding-the-future-of-consumer-behavior) since the inception of the firm. We gravitate toward large markets that are undergoing massive consumer shifts, and we invest behind the entrepreneurs and visionaries who are building technology enabling these shifts. Perhaps the best example of this thesis in action is in e-commerce, where we ask ourselves how consumers will purchase goods and services over the next decade. 
We’re all aware that e-commerce gained momentum over the last two years, propelled by a global pandemic that forced goods and services to be purchased online. Even as the physical world has begun to open back up, however, e-commerce is showing no signs of slowing down. 
To put the size and growth of the U.S. market opportunity into perspective, e-commerce reached nearly [$800 billion](https://www.emarketer.com/content/us-ecommerce-forecast-2021) in total spend and represented 14% of total retail sales in 2020. Looking over the next five years, the TAM is expected to double to $1.65 trillion and reach 24% online penetration—meaning over the next five years alone, $850 billion of _new_ TAM will be created, which is more than the total e-commerce market size that has been created to date. 
<center>![Explosive Market Growth Yet to Come](//images.ctfassets.net/vcjxvx0h1a5n/6d2Vi6hn1U2QCUGkbWLgxX/83cc8c4dfe93444ccd57be3153298baa/TAM_v5.png)</center>
<center>*Source: eMarketer* </center> 
With so much market opportunity in the near term, we’re constantly asking ourselves three key questions about the future of commerce: How is consumer buying behavior shifting? Where can value be created from this shift? And who will capture the resulting value? 
Before looking forward, we want to first look back at our own portfolio evolution as we’ve adjusted to the evolution of commerce. 
## Fund I: Identifying DTC white spaces
Commerce investing has always been in the M13 DNA. The first M13 investments in the early and mid-2010s included category-defining brands such as Bonobos, Ring, FabFitFun, and Daily Harvest. These investments were made through Fund I, an evergreen fund with capital deployed between 2012 and 2018. The investment thesis was based on a changing consumer behavior toward convenience and brand community. DTC brands emerged, taking on retail incumbents as they built products in consumer white spaces. We saw the benefits of an online delivery model and the creative storytelling of online-native retailers, and we backed early leaders in food, apparel, consumer electronics, and more. 
Take, for example, Bonobos, which was one of our first Fund I investments. Industry pioneers Andy Dunn and Brian Spaly were doing something that was unique at the time—selling pants that fit, completely online. Few companies like this existed, and they helped create a white-space category for digitally native fashion. It’s crazy to think about now, but back then, one of our _risks_ in investing in the company was: “Will people feel comfortable buying pants online?” Thankfully, we were able to buy into Andy and Brian’s vision of what is now an obvious consumer behavior. 
<center>![Creating White Spaces](//images.ctfassets.net/vcjxvx0h1a5n/5bg1Lu1NXmn2WdRWgEFIyx/34412823918d0bd2611e87228d36ff0a/Whitespaces_v5.png)</center>
<center>*Source: M13* </center> 
## Fund II: Adapting to the changing DTC landscape
As we transitioned to Fund II in 2019, we began to see that the distribution model of selling online was no longer going to be a competitive moat in commerce. We attributed this to two primary drivers: 
### Competition: Infrastructure and software tools made it easy to set up a store and start selling online
Shopify, BigCommerce, Wix, and other online storefronts allowed small business owners to set up a site in just days. As the barrier to entry was lowered, gaining access to e-commerce distribution became easier and more entrants arrived. Take Daily Harvest, for example—in 2015, they created a new white space for healthy frozen foods shipped to a customer’s door. By the time Fund II launched, there were at least a dozen competitors knocking off the idea and selling their own versions (none of which taste quite as good, in case you’re wondering). 
<center>![Shopify number of merchants increased 12x](//images.ctfassets.net/vcjxvx0h1a5n/2EMkuNHADpxlywAjwxflia/aac402bb456f70237c3b2761f82a1922/Shopify_v5.png)</center>
<center>*Source: Shopify Quarterly Results; represents stats at the beginning of each fiscal year* </center> 
### Customer acquisition: Paid marketing became commoditized
Early commerce brands like Ring reached hundreds of millions in revenue through creative social media campaigns and online customer acquisition strategies. But as more consumer electronics companies flooded the market, digital CAC rose to unsustainable levels. It was no longer a viable acquisition strategy for Ring to grow sales by relying primarily on Google and Facebook, which had once been the bread and butter for digitally native brands. 
<center>![DTC Customer Acquisition cost has increased significantly](//images.ctfassets.net/vcjxvx0h1a5n/GXDQzFtChul0XfpJC1IsA/ac638aeee5b060374a89cb328ccefb50/DTC_Acquisition_v6.png)</center>
<center>*Source: [Profitwell 2018 CAC Study](https://www.profitwell.com/recur/all/content-marketing-customer-acquisition-cost)* </center> 
In response to the changing landscape, we began to explore investment opportunities deeper in the value chain—a shift from the _brand/application_ layer toward the _infrastructure_ layer of e-commerce. Rather than betting on which brands will capture consumers’ loyalty, we began to invest in the software and enabling technologies to help them get there. These e-commerce enabling investments include mission-critical infrastructure such as banking and financial services ([Rho](https://www.rho.co/)), shipping and logistics ([Passport](https://passportshipping.com/)), marketing ([PINATA](https://www.gopinata.com/)), and cart conversion ([Carrot](https://addtocarrot.com/)). 
## Fund III: Investing in sophisticated tooling for DTC
This takes us to where we are today, making capital allocation decisions that will allow us to support the next wave of commerce enablement businesses supporting the rise of online purchasing. And we transition from looking back to once again making predictions on changing consumer behavior. Moving forward, we’ll focus on investing in the infrastructure helping to build the next phase of commerce. 
Value creation is already beginning to validate this investing strategy. Today, there are <a href="https://www.cbinsights.com/research-unicorn-companies" target="blank">515 unicorns based in the U.S.</a>, representing $1.77 trillion in cumulative enterprise value. By our count, 20 DTC brands are on the list (we’re proud to have four of these as M13 portfolio companies: Rothy’s, Daily Harvest, Tonal, and Pax*), representing only 2% of the total enterprise value. In contrast, commerce enablement companies represent 11% of the total enterprise value, 5x the value creation of all DTC brands**. While select DTC brands will continue to reach unicorn status in the future, we believe the next wave of value creation in commerce investing will occur primarily at the infrastructure layer. As a result, we’re aligning our investment strategy to best capture this value.
<center>![Value Creation for DTC Brands](//images.ctfassets.net/vcjxvx0h1a5n/7GwKKVzHESlSlIxI0mA2Lo/0fc12b693aea6a684edaa557dcb3453b/Value_Creation_v7.png)</center>
<center>*Source: CB Insights* </center> 
This isn’t to say we no longer support the DTC community. On the contrary, we love DTC brands and still count more than 30 such companies as active portfolio companies in Fund I. We believe that there are now more advantageous capital allocation options for DTC founders to consider, including new equity structures (for example, at M13 we’re incubating brands in partnership with founders—we’ll continue to build select companies at the brand/application layer) and non-dilutive forms of financing (which we’ll explore in a subsequent article on the future of e-commerce financing). With $850 billion of new TAM coming online in commerce, we see a golden age for emerging DTC brands and founders, and we’re investing in the tools and platforms needed to support them. 
<center>![Fund I-III investing evolution ](//images.ctfassets.net/vcjxvx0h1a5n/5l0eWccWCZTjvfPgY0W6wH/6bf79c821e33a18e411cd6c27ab0c3d8/Ecomm_FundI-III_v12.png)</center> 
<center>*Source: M13* </center> 
M13 Partner Anna Barber and Principal Brent Murri lead M13’s commerce enablement strategy and will share more insights over the next year, including these topics:
<DotBullet highlight="" text="What alternative forms of financing are emerging to support DTC brands?" />
<DotBullet highlight="" text="How can brands employ Web3 technologies to better serve customers?" />
<DotBullet highlight="" text="How is the traditional retail model being disintermediated by the new wave of sellers?" />
_**If you’re a founder building in the commerce enablement space, we’d love to chat. Reach out to us at [brent@m13.co](mailto:brent@m13.co) and [anna@m13.co](mailto:anna@m13.co).**_ 
_* M13 exited our position in Pax in 2018._
_** Only includes current unicorns; DTC brands include digitally native merchants; doesn’t include marketplace models, digital services, or e-commerce acquirers and aggregators._

M13’s history of investing in DTC brands is propelling us toward the future of commerce.

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Investing in the Future of Commerce

Here’s a look back at M13’s history of investing in DTC brands—and a look ahead at the e-commerce enablement tools changing the future of commerce.

Investing in the Future of Commerce | M13

Thumbnail Investing in the Future of E-commerce

The rise of online grocery shopping has been astonishing to watch over the last two years. Customers who had resisted adopting online behaviors because they preferred to pick out their own produce were forced to adapt due to COVID-19 restrictions. And many of them have stayed online. 
Between 2019 and 2021, online penetration of grocery shopping grew 4x, and today, 15% of all grocery is bought online. This year alone, nearly half of the U.S. population will make at least one digital grocery purchase. 
While many Americans have endless options of what they can order online, digital choices aren’t equally available to all demographics. Take the 23 million Asian Americans living in the U.S. Online availability is much more limited if they’re looking for a wider selection than the ethnic food aisle at a traditional supermarket, and many of the mom-and-pop Asian grocery stores have yet to build online business models. Digital penetration is still under 5% in the $20 billion Asian specialty store market as most of the 30,000 retailers rely on a brick-and-mortar model to sell their food. 
<center> ![Umamicart Founders](//images.ctfassets.net/vcjxvx0h1a5n/1IMOon9xBPGm5ezKJ3HSKw/8ffc75c1f946e44da3f071da2525e58b/IMG_1342_copy.jpg) 
*Umamicart Co-founder and CEO Andrea Xu (right) with Co-founder and COO Will Nichols* </center> 
[Andrea Xu](https://www.linkedin.com/in/andrea-xu-she-her-35ba9435/) and [Will Nichols](https://www.linkedin.com/in/wsumnernichols/) incubated [Umamicart](https://umamicart.com/) out of FJ Labs to give Asian Americans more access to authentic cuisine online. Customers can order pantry staples, snacks, produce, and meal kits that are delivered to their door either the same day or next day. Umamicart also features new and upcoming food brands that aren’t available in traditional brick-and-mortar Asian grocery stores, including Fly by Jing sichuan sauce and Mother-in-Law’s kimchi. 
Andrea grew up in an entrepreneurial family with parents who ran a Chinese restaurant in Europe. She still maintains the family’s Asian wholesaler and supplier relationships to run Umamicart. As Instacart’s former New York City general manager, Will deeply understands what it takes to scale grocery markets. 
Operationally, the company has built a unique distribution network that will allow them to scale efficiently as they expand across the country. Umamicart currently has one distribution center in NYC that can deliver to customers within a 300-mile radius. And since 75% of buying power by Asian Americans is concentrated in 10 states, most of Umamicart’s target customer base can be served with only three distribution centers in the U.S. This supply chain strategy puts the online grocery startup years ahead of competitors in an industry where unit economics are a fleeting goal. 
We’re excited to lead Umamicart’s seed round alongside FJ Labs and an all-star cast of current and former food technology entrepreneurs from companies including HelloFresh, Shef, and Foxtrot. If you’re in the mood for some Calbee potato chips or a meal kit to recreate one of the meals from Squid Game, check out the online aisles [here](https://umamicart.com/).

M13 is leading the seed round for Umamicart, which delivers your favorite Asian groceries and snacks.

An Umamicart box is overflowing with a variety of food in the lower left corner, overlapped by the Umamicart seal and below the Umamicart logo with various simplified food icons on the right.

Investing in Umamicart: Online Asian Groceries Within Reach header

Investing in Umamicart: Curating Asian Groceries Online

M13 is leading the seed round for Umamicart, an online grocery store delivering your favorite Asian groceries, produce, pantry staples, meal kits, and snacks.

Investing in Umamicart: Curating Asian Groceries Online | M13

umamicart investment thumb v1

In 2017, I tried to get into the real estate game. Up until that point, my personal investment portfolio included mostly equities. I knew I had to diversify, and what better way than by investing in one of the most stable asset classes in the country? 
I also saw the tangible benefits of owning residential real estate: stable cash flows, asset appreciation, and tax advantages. Growing up, my parents owned rental properties, and I experienced firsthand the cushion of predictable rent checks coming in each month. In 2015, my brother had purchased a rental home and saw its value appreciate 40% over the two-year period. My decision was made, but where to start? 
I soon realized adding real estate to my portfolio would be a much more difficult process than buying a portfolio of stocks through my Fidelity account. Why?
<DotBullet highlight="The first limitation was geography." text=" Where I live in Los Angeles is out of the question due to high purchase prices, so I settled on my hometown in Washington state. I figured that if something went wrong with my property, at least my parents would be close by. " />
<DotBullet highlight="Next step was getting a real estate agent who would find my house." text=" I didn’t know any in the area so again, I relied on my parents for leads. " />
<DotBullet highlight="Then I needed to line up a property manager who would find me tenants" text=" and help with upkeep and maintenance." />
I wish I could say all the work was worth it in the end, but after putting in five offers and losing in the bidding process on all of them, I gave up. I couldn’t get into the residential real estate investment game after all. 
## Access to residential real estate investing 
<center> ![Doorvest founders photo](//images.ctfassets.net/vcjxvx0h1a5n/321COpBpCkO8ZuBg7fPB9H/dfb8d8a581c219d27128adb2cbcf83ac/Copy_of_JustinAndrew_Jan2021__9_of_20_.jpeg) 
*Doorvest Co-founder and CEO Andrew Luong (left) with Co-founder and CTO Justin Kasad* </center> 
Around the same time, [Andrew Luong](https://www.linkedin.com/in/andrewqluong/) and [Justin Kasad](https://www.linkedin.com/in/justinkasad/) were figuring out how to help folks like me (and millions of other prospective real estate investors) own residential rental properties without all the friction. 
In 2020, the longtime friends founded Doorvest, a technology platform that democratizes access to real estate. Customers sign up online, specify the type of home they’re looking for, and place an initial deposit. Doorvest handles the rest, including finding and acquiring the home, renovating, placing tenants, and managing the property. The customer then purchases the home from Doorvest, becomes the new owner, and starts collecting monthly rent checks. 
Doorvest has acquired over 100 homes for customers who are based in more than a dozen states. Today, the company purchases homes in the Houston and Dallas metro areas, with plans to expand to additional states in the near term. Customers love the product because it provides them access to an attractive asset class that traditionally had high barriers to entry. Average annual returns (including asset appreciation) for their customer base is 18%, and 96% of current customers say they would purchase another home with Doorvest. 
<center> ![Doorvest team photo](//images.ctfassets.net/vcjxvx0h1a5n/2E2XAjWAouce5ZPZvvzbCy/abb573f4088b91d47bd56e4c772cefc8/Copy_of_May_11__2021.jpeg) 
*The Doorvest team in San Francisco* </center> 
In the U.S., the single-family rental (SFR) market is massive at $220 billion in annual rental income. About 17 million Americans own an SFR, which as an asset class has delivered an 8% average annual return over the last three decades. 
Investors also love that the SFR market is highly resistant to economic downturns. In a downmarket, home values could depreciate, but rental demand increases and rental prices remain stable or increase. During the COVID-19 pandemic, SFR rent collection rate averaged 95% versus 76% for multi-family, and historically rent collection has been at 98%. In an upmarket, home value appreciates, and rents remain stable or increase. 
We’re excited to lead Doorvest’s $13 million Series A equity financing alongside an incredible group of investors and angels including Mucker Capital and executives from Invitation Homes, Opendoor, Ribbon, Sundae, and Homeward. If you’re interested in SFRs, find out how it could work for your own investment portfolio [here](https://doorvest.com/how-it-works). I for one am excited to finish my own real estate journey that began nearly five years ago.

M13 is leading the $13 million Series A equity financing for Doorvest, a real estate tech platform.

Doorvest’s logo is placed in the upper left corner with an illustration of a couple standing in front of their new home as coins float around them almost as if the house is a piggy bank. 

Doorvest Contentful v1

Investing in Doorvest: Expanding Access to Rental Home Ownership

M13 is leading the $13 million Series A equity financing for Doorvest, a real estate tech platform for buying and managing single-family rentals (SFRs).

Investing in Doorvest: Expanding Access to Rental Home Ownership | M13

Doorvest’s logo is placed in the lower portion with a screenshot of Doorvest's website of a home listing. 

Brent Murri

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Investing in the Future of Commerce

Investing in Umamicart: Curating Asian Groceries Online

Investing in Doorvest: Expanding Access to Rental Home Ownership

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