How To Buy A D2C Startup For Cheap and Sell It For Millions

TL;DR

Mateo runs an independent sponsor called Kart Ventures that buys distressed D2C brands (e.g., Solo Wood Flowers, a succulent company, an apparel company) using a thesis focused on operational moats—especially physical manufacturing in the US/Mexico—and getting cash back quickly via royalty structures.

Key insights

• The guest’s holding company is structured as an “independent sponsor,” doing deal-by-deal equity with different co-investors (e.g., Sean on one deal, Sam on another) rather than a formal fund.
• Investment thesis prioritises liquidity over equity appreciation: they aim to pull the initial cash out of a deal within 2–3 months via royalties or debt structures, reducing risk versus a traditional
• The most defensible moat they’ve found is an operating moat—businesses requiring physical manufacturing in the US/Mexico (e.g., live frogs, trees, wooden flowers) that competitors cannot easily replic