Wartime Market, Portraits & Vibrating Necklace 🙅

Why do we need this? 

Since the 1970s, when sex toys first rose to prominence, the industry has been largely dominated by large male- or family-run companies, such as Doc Johnson, LELO, and Church & Dwight Co.

Naturally, that perpetuated the stigma around female pleasure that even today has kept the women’s sexual industry largely tabooed. 

So while 70% of legacy sex toy companies are run by men, women now account for the vast majority of sex toy startups. 

But what’s the scope of growth for these startups? Turns out, plenty.

Market Outlook

The consumer demand is certainly there: In October 2014, Dame Products raised $575k on Indiegogo to make Eva, a hands-free vibrator. Dame also made history on Kickstarter when in 2016 it launched its Fin, raising more than $400k and making it the first crowdfunding campaign for a sex toy on the platform. 

Sexual health is big business, nearing $30B in global revenue in 2018. The vibrator market alone comprises $6.5B, growing at 13% annually. And fund houses like Intimate Capital are launching to invest specifically in sexual wellness companies.

Stats: Stock performances of some of the companies whose CEOs have left are already down year on year:

• Twitter - 32% 
• Airbnb - 25%
• Peloton - 89%
• Pinterest - 60%
• Instacart - 40% in 2022

With the pressures of e-commerce, inflation, mass firings, labor shortages, and whatnot, CEOs are facing the worst time in startup history in over a decade. Naturally, for many founders it may seem like the only plausible way for the company to survive is to hand over reigns to someone else.

What does the portrait of the ideal founder look like?

One: Has worked for years in the top companies in the industry in which they are launching a startup = understanding the market.

Two: Fall between the 30 to 50 year age bracket. And have ages of working on one specific problem = understanding the pain points and having the competencies.

Three: Were born in the U.S., India, Israel, Canada or the U.K.  

Point three is of course just coincidental. For most VCs, the first two points are enough to invest in a startup at an early stage.