h venture partners closes $10m debut fund targeting science-based brands

H Venture Partners Launches $10 Million Fund for Science-Backed Consumer Brands

H Venture Partners successfully assembled a group of over 75 specialists in the consumer and retail sectors to contribute to its inaugural fund. This fund, totaling $10 million, is specifically designated for investment in early-stage consumer brand companies that utilize scientific principles.

Firm Origins and Investment Philosophy

The Cincinnati-based venture capital firm was established in 2017 by Elizabeth Edwards, who serves as Founder and Managing Partner. Edwards brings with her 15 years of experience as a venture capitalist from previous firms, including notable investments in companies like Peloton, Bill.com, Roots, and Freshly.

Edwards explained that a common misconception among venture capitalists is that consumer brands lack the technical complexity of other sectors. She countered this by highlighting the significant technology involved in processes like growing produce and maintaining its freshness during transportation. The firm actively seeks opportunities where natural processes, scientific innovation, and consumer behavior converge.

Fund Focus and Investment Strategy

Typical investment sizes from the fund average $500,000. H Venture is prioritizing investments in companies led by female founders and founders of color. This strategy aligns with the observation that women account for 85% of consumer purchasing decisions, yet only 3% of venture capital is managed by white men.

Furthermore, consumer spending constitutes 69% of the U.S. gross domestic product, despite receiving only 3% of total venture capital funding. The firm has already allocated capital to 10 companies and aims to make a total of 15 investments.

The firm focuses on brands with the potential for placement in major retail stores, such as Sephora or Target.

Portfolio Companies and Notable Investments

Edwards discovered the Prima CBD brand through personal experience and was impressed by its rigorous third-party testing, certifications, and supply chain management. H Venture co-led Prima’s $9.2 million seed round alongside Defy Partners, Greycroft, and Lerer Hippeau. Prima was founded by Christopher Gavigan, the former Chief Purpose Officer of The Honest Company.

H Venture’s initial portfolio also includes Cerebelly, a baby food manufacturer, and Avaline, a clean wine company co-founded by Cameron Diaz and Katherine Power.

Edwards emphasized that Avaline is not simply a celebrity-endorsed brand. Cameron Diaz has authored two books on clean wines and is deeply committed to traditional winemaking practices.

Leveraging Industry Expertise

The fund benefits from a robust network of over 75 founders, entrepreneurs, and investors with extensive experience in the consumer and retail industries. Notably, half of the network’s members are women, providing startups with a level of expertise that Edwards believes surpasses that of many Silicon Valley firms.

A significant portion of the fund’s backers possess over 35 years of experience in the retail and consumer sectors, having led billion-dollar organizations. This network provides invaluable guidance, with members actively serving on startup boards.

H Venture recognizes it doesn't possess expertise in every area, and instead relies on its network of seasoned executives who are eager to contribute their time and knowledge to support emerging companies.