# #60 Venture Capital & Private Equity 101 with VMG Partners' Wayne Wu

- Show: [The Startup CPG Podcast](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast)
- Published: 2022-09-06
- Length: 47m
- Episode: 37
- Page: https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu
- Listen: https://share.transistor.fm/s/7dc770ef

## Summary

Wayne Wu, Managing Director at VMG Partners, explains the mechanics of venture capital and private equity funds, detailing how capital is raised from limited partners and how returns are generated through the '2 and 20' fee structure. He outlines VMG’s investment framework for consumer packaged goods brands, emphasizing the critical importance of gross margins, sales velocity relative to category peers, and total addressable market (TAM). Wu advises early-stage founders to build defensible brand equity through trademarks, maintain strong unit economics from day one, and proactively network with investors before they need capital to ensure long-term alignment.

## Chapters

- [0:03](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=3) Introduction and Wayne Wu's Background
- [8:55](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=535) How Venture Capital Funds Work
- [17:49](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=1069) VMG's Investment Framework: Margins and Velocity
- [24:41](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=1481) Founder Fit and Strategic Alignment
- [26:41](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=1601) Advice for Early-Stage Founders
- [29:58](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=1798) Deal Sourcing and Investor Outreach
- [36:12](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=2172) Post-Investment Partnership and Valuation
- [42:50](https://hardwarepodcasts.com/podcast/the-startup-cpg-podcast/2022-09-06-60-venture-capital-private-equity-101-with-vmg-partners-wayne-wu#t=2570) The Unfinished Biz Podcast and Final Thoughts

## Topics

- [Fundraising & investors](https://hardwarepodcasts.com/topic/fundraising)
- [Pricing, margins & unit economics](https://hardwarepodcasts.com/topic/pricing-and-unit-economics)
- [Validation & product-market fit](https://hardwarepodcasts.com/topic/validation-and-product-market-fit)
- [Leadership, teams & culture](https://hardwarepodcasts.com/topic/leadership-and-culture)
- [Marketing & brand](https://hardwarepodcasts.com/topic/marketing-and-brand)

## Most relevant to

early-stage companies, companies scaling up

## Mentioned

- VMG Partners (company)
- KIND Bar (product)
- Perfect Bar (product)
- Pirates Booty (product)
- Justin's (product)
- Natural Balance (product)
- Pretzel Crisps (product)
- Lily's Sweets (product)
- Hershey (company)
- Unfinished Biz (other)
- Daily Harvest (product)
- Deloitte (company)
- RBC Capitol Markets (company)
- ACG (other)
- Expo West (other)
- Expo East (other)

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## Citing this page

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