A Founder's Guide to Consumer & CPG Fundraising in 2025

Raising capital as a consumer or CPG brand in the U.S. means navigating a crowded, fragmented investor landscape. To get a real-world perspective on what investors are looking for today, we spoke with Diana Melencio, General Partner at XRC Brand Capital Fund, who recently joined us for our Emerging Brands Collective trip to Bentonville. 

Below is a guide to the capital stages you'll encounter, what today's investors expect, and a directory of active funds in the space.

The early-stage capital landscape

Understanding the types of capital available helps you target the right investors at the right time. Here's what founders typically encounter:

A note on non-dilutive capital: Equity is critical for building your brand and team, but inventory is often the biggest ongoing cash drain for consumer brands. Non-dilutive financing from companies like Lunr provides capital for inventory and purchase orders without taking equity, allowing you to preserve ownership while you scale.

Which consumer categories are winning investor attention?

Not all consumer categories are created equal right now. Diana notes that "beauty and personal care continue to stand out given their strong gross margins (70% - 80%), high exit multiples, and active M&A activity." If you're building in these spaces, you're operating in categories with proven investor appetite and clear paths to exits.

Beyond beauty, there's growing momentum in health and wellness. Diana shares that she's "excited about emerging OTC and consumer health opportunities — particularly in self-care, supplements, and Rx-to-OTC switches — as consumers lean further into convenience, preventive health, and downstream effects of GLP-1." This represents a frontier where shifting consumer behavior is creating new investment opportunities, especially as wellness becomes more mainstream and accessible.

What it takes to raise equity today

The requirements for securing venture funding have become more stringent. According to Diana, "Check sizes have stayed relatively steady, but the bar for attracting venture funding has definitely risen — $1M - $3M in revenue paired with a wholesale order — a sign of real discipline among investors to the frustration of founders."

In practice, this means investors need to see product-market fit backed by real numbers: meaningful revenue and at least one wholesale partnership that proves your brand can succeed beyond DTC. But not just any wholesale partnership will do. Diana warns that "institutional investors are increasingly looking for early proof of scalable retail or specialty beauty distribution: independent boutiques or Faire relationships often do not suffice even at the early stage, before writing a check."

Brands need distribution channels that demonstrate scalability: regional chains, specialty retail with multiple doors, or partnerships that show a path to national expansion.

Finding the right investors for your brand

The consumer and CPG investment landscape includes hundreds of active funds, from small regional seed investors to global growth equity firms. The key is finding investors who:

• Are actively investing in your category
• Write checks that match your stage and funding needs
• Have portfolio companies at a similar stage or slightly ahead of you
• Understand your distribution strategy and margin profile

Active early-stage investors in consumer & CPG

Below is a vetted list of active investors in the consumer and CPG space. Many of these investors are active in Lunr's portfolio of consumer brands and are actively looking for the next amazing consumer product. Use this as a starting point for building your target investor list.

The best funding strategy combines equity for brand building with non-dilutive capital for inventory. Ready to preserve more ownership while you grow? Reach out to Lunr to learn about inventory funding solutions that complement your equity raises.