Raising capital is one of the hardest and most time-consuming jobs a founder will ever face.
Tom Leigh has seen this from both sides of the table: first as a consultant helping startups close millions in seed and Series A rounds, and now as the co-founder of Tommy Popcorn, a gourmet snack brand bringing a "craft moment" to popcorn in the U.S.
For Leigh, it might sound obvious, but fundraising for a consumer-packaged goods (CPG) company is very different from raising for tech. Investors don't care about app installs or downloads; they care about proof that people will buy, rebuy, and talk about your product.
Here are the 10 biggest lessons he's learned from the trenches.
1. Start with traction
In tech, you can normally raise on a pitch deck. In CPG, investors want to see product development, letters of intent from buyers, and repeat sales. At Tommy Popcorn, Leigh and his team tested flavors and started talking to businesses while they pitched our first round.
2. Treat storytelling as an asset
Your brand is your moat. Packaging, branding, and the story you tell are what give investors confidence.
For Leigh, building "Tommy," a fictional 1950s Brooklyn character, gave the brand cultural IP that investors could see standing out on shelves and gaining traction across global markets.
3. Simplify your pitch deck
Numbers are impressive, but too many and you risk overcomplicating your pitch. The best decks are simple: the size of the opportunity, your product, and how you scale.
Most of the time, investors see hundreds of pitch decks a year. Think about how you can stand out from the crowd by inspiring them to come along for the ride.
4. Understand how valuations work
Valuation in CPG isn't a strict formula. Don't obsess over the "perfect" number; focus on traction and branding that justify investor confidence.
5. Expect dilution earlier
Unlike tech, consumer businesses are capital-intensive.
Storing inventory, manufacturing, managing logistics and distribution – the list goes on, and as Leigh emphasizes, it doesn't come cheap.
What this can mean is that CPG founders might take more dilution at seed stage than those raising in tech. Plan for it.
6. Know what metrics matter
Investors don't want to see thousands of numbers on a spreadsheet. But what they do want to see is a GTM strategy that includes:
- cost of goods
- margins
- customer sentiment (B2B and B2C)
- pipeline sales
For Leigh, these are stronger than any other metric when it comes to FMCG.
7. Think about your exit on day 1
Most consumer exits happen through M&A. Poppi got bought by PepsiCo, and Mars bought Kellanova.
Ask yourself: how would PepsiCo, Nestlé, or Unilever view your brand in 5–7 years?
Building with this in mind can help you build for success.
8. Build traction before the raise
Even pre-seed investors want proof that your brand can attract paying customers.
That might mean early D2C sales, partnerships with local businesses, or a waitlist of buyers.
Show demand before you ask for dollars. After all, the lower the risk you make the investment seem, the more likely they are to want to buy in.
9. Fundraising is a full-time job
Don't underestimate the grind. It's weeks of pitching, follow-ups, and due diligence. You're not just raising once, you're building relationships that will shape the company long after the money hits the account.
Do everything you can to keep momentum going. Lean on the team to take other tasks off your plate and don't let the ‘nos' bring you down. Fundraising isn't supposed to be easy, but keep going, and your hard work will pay off.
10. Choose investors for more than their checks
Leigh's final piece of advice is probably the most important. The right investors don't just provide cash. They provide networks, credibility, and expertise. In CPG, especially, having advisors who understand supply chains, retail distribution, or branding can be as valuable as the capital itself.
At Tommy Popcorn, Leigh explains that they are lucky to be joined by a suite of incredible advisors who are helping them build the brand from the bottom up.
Fundraising from the trenches
Fundraising for a CPG brand isn't easy. It's gritty, intense, and requires a lot of time.
But it's also exciting. After months of hard work, you can finally hand an investor your product, let them taste it, and watch them get excited about its potential.
That hustle is your edge. Lean on it. And remember: you're not just raising money; you're building a network of investors who are helping you build a brand that consumers (and other businesses) can't ignore.
Image Credit: Tommy Popcorn
This post was authored by an external contributor and does not represent Benzinga's opinions and has not been edited for content. This content is for informational purposes only and not intended to be investing advice.
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