Glow Capital Partners

What we are talking about on WhatsApp👀

What We're Talking About on Whatsapp: ⭐ Rising attacks on Red Sea shipping are delaying shipments out of China, leading to narrowing delivery windows and tight deadlines on Chinese manufacturers. https://lnkd.in/gx9qx_D3 ⭐ Private Equity funds are increasingly filling a gap left by VCs, with investments made both directly and via portfolio companies. Terms can vary from what firms previously received – for example, Delivery start-up Sendle announced a US$11M funding round with investors guaranteed four times their money back in any sale.  https://lnkd.in/gPMmdJDf ⭐ The original Top Gun didn’t just launch Tom Cruise into mega stardom – it also transformed the VHS market forever by lowering the cost of home movies, which were previously extremely expensive. Top Gun retailed for US$26.95 rather than US~$80 using Pepsi ads to offset the costs. https://lnkd.in/g9dcKZTB ⭐ We enjoyed listening to Pat Grady on Invest Like the Best. Pat talked about how Sequioa’s legendary culture owes in part to selfless leadership decisions – from Don Valentine handing over the firm in the 90s, to another subsequent number one Doug Leone changing legal docs to make sure that he could be removed. https://lnkd.in/gMrcwmXw ⭐ We’ve been reading ‘That will never work’, the biography of Netflix co-founder Marc Randolph. Netflix has long used tests to guide all decisions – including testing its one-day delivery proposal in Sacramento and observing that while retention didn’t change, there was an associated increase in new customer sign-ups. ⭐ Another day, another commercial application of AI – Qantas has used AI since 2018 to dynamically adapt flight routes to weather patterns and aircraft capability as well as for fuel supply, https://lnkd.in/gWY74i97.

A fantastic turnout at the Ragtrader Breakfast of Big Ideas this week, Justin Ryan spoke alongside the wonderful Kristy Chong OAM, founder of Modibodi. They shared fond memories of her scale-up journey. Some interesting takeaways from the event were: 🌟 Market Adaptation: The retail landscape has dramatically shifted. It's no longer 2019 - we're in a new normal with players like Temu and SHEIN disrupting the market. High-quality brands are the ones that will survive. 🚨  Warning Signals: Keep a close eye on aged stock, overreliance on markdowns, decline in basket size and cashflow. These are critical indicators of a business's health in the retail sector. 💡 Customer Understanding: Respect your customer and truly understand their motivations. Remember, in retail, we often sell things nobody needs - purchases are driven by emotion or perceived value. 🛠️ Operational Efficiency: Costs are enemy #1. Continuously review and optimise your operations. Don't wait for annual reviews - the less you spend, the better you do. Don’t get caught “speeding.” 🏷️ Brand Positioning: Clear brand identity and positioning are crucial. Understand what makes your brand special and why customers choose you. Stay true to who you are and your values. This clarity can drive successful transformations, as seen in cases like Seafolly and R.M.Williams. 📊 Margin Matters: A good margin gives you room to manoeuvre and is often an indicator of quality and brand strength. In tough markets, it provides the ammunition to fight competitive pressures. 🔍 PE in Consumer Goods: While the consumer sector can be challenging due to seasonality and supply chain issues, it still offers great opportunities. The key is finding that rare combination of a great founder, strong brand, sizeable market, and healthy margins. Annie Chen Isabella Mortimore

🚨 New Job Alert! 🚨 Our portfolio company, Cargo Crew, is seeking a Head of Marketing to join their leadership team. Don’t miss this opportunity to join an ambitious team and continue to elevate the Cargo Crew brand to new heights! https://lnkd.in/gtt942eg

Ragtrader is hosting a Breakfast of Big Ideas in Sydney on June 26 with four powerhouse panel discussions featuring some of the top fashion industry leaders in 2024. Our Managing Partner, Justin Ryan, will be alongside Modibodi founder Kristy Chong OAM for a panel discussion to share their playbooks on building and scaling successful ventures. Gain insights from this open-book conversation on entrepreneurship, investing, and capitalising on growth opportunities. Secure your tickets here: https://lnkd.in/gYi347Ca

What We're Talking About on Whatsapp: ⭐ Spending on AI computing remains strong, with NVIDIA sales forecasts for Q2 shattering estimates (again). https://lnkd.in/gZK34pn5 ⭐ Acquired is one of our favourite podcasts, and they have finally tackled Microsoft. When Microsoft IPO’d in 1986, their market cap was only $750M despite having done $200M of software revenue in the LTM and growing 100% YoY. Microsoft is now 49 years old, and the most valuable company in the world. https://lnkd.in/gNU9EmMK ⭐ Is the luxury boom slowing down? LVMH’s first quarter revenue dropped by 2% year over year, with the biggest drag on revenue from wines and spirits. Declining demand for champagne reflected normalisation of post COVID demand. https://lnkd.in/ggaGDfdr. ⭐ Jeremy Giffon was the first employee at Tiny Capital, a business aggregator that turned ~$5M into ~$500M in 10 years. He joined the My First Million guys to talk through his journey and what he learnt along the way. We agree with his view that the cold email is an asymmetrical trade – it generates huge opportunity with limited downside. https://lnkd.in/gStgEiSH ⭐ Kmart’s own brand label Anko was first registered in 2017 and is stamped on 85 per cent of own brand products the retailer sells. It is now also powering the group’s growth, as local success at Kmart Australia and New Zealand has seen Anko expand to both domestic and international markets via strategic retail partnerships. https://lnkd.in/gKHqzZwq ⭐ Private Equity and Venture Capital have performed strongly over the last decade, outperforming public markets by returning 16% to investors over 10 years compared to 8% for the ASX300. Australian products have performed particularly well relative to global peers. https://lnkd.in/gCGrmVPp

🎙️If you've ever wanted to learn about the journey of starting a private equity firm, tune into the recent ION Influencers’ Fireside Chat hosted by Giovanni Amodeo, where our Managing Partner, Justin Ryan, discusses the intricacies of launching a first-time fund and raising capital. Their discussion covers a broad range of topics: 🌟 The founding journey of Glow Capital Partners, including insights into raising capital as a first time fund from institutional investors and family offices. 🌟 The firm's investment focus and emphasis on proprietary deal flow. 🌟 The significance of assembling a talented team and cultivating a partnership culture. 🌟 Glow's commitment to ESG principles and its recent achievement of BCorp certification. Be sure to watch the full video to hear more about Glow’s future aspirations. https://bit.ly/4dNUYRb

Don't miss this insightful founder interview with Felicity Rodgers, showcasing what makes Cargo Crew such truly unique and special brand.

What We're Talking About on Whatsapp: 🌟 Rising: teen and tween demand for premium skincare treatments, including Drunk Elephant, Christian Dior and Sol de Janeiro. Also rising: young patients with skin irritation and breakouts caused by using too many products. The brands caught in the middle will need to carefully navigate associated ethical and legal issues. https://lnkd.in/grfUq5w7 🌟 Google is considering charging for new ‘premium’ features powered by generative artificial intelligence. The proposed revamp to its cash cow search engine would mark the first time the company has paywalled its core product. https://lnkd.in/dg-FzJjA 🌟 Almost one in three jobs created over the past year was in an industry servicing the National Disability Insurance Scheme, highlighting the scale of the challenge to reign in the program. https://lnkd.in/gJp7vrra. 🌟 Temu, the e-commerce app that sells bargain-bin delights, is the No. 1 advertiser by revenue on Meta, spending a staggering US$2B last year on Facebook and Instagram ads. Temu is also investing in paid search for its items to appear alongside name-brand products. Both practices increase advertising costs for competitor brands. https://lnkd.in/gtd3XWt5 🌟 Blundstones, the 154-year-old Tasmanian-origin work boot, continue to grow overseas. Interestingly, while only 15 per cent of Australian sales fall into the lifestyle category, the boots are a fashion item in the UK and US, worn by David Beckham, Kate Moss and Kate Middleton. https://lnkd.in/gZGsdu4t 🌟 Invest Like the Best is one of our favourite podcasts, and we enjoyed Patrick O’Shaughnessy’s interview with Sean Feeney, the owner of top NYC restaurants Lila and Misi. Sean, an ex-trader, leveraged his finance background to build profitable restaurants – for example, looking at 40 potential sites to find one with the right rent to sales ratio (of 8%). https://lnkd.in/dkVBatH8

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