Forerunner Ventures was founded about a decade ago with a focus on direct-to-consumer ecommerce brands.
And they've invested in some of the most successful companies in this space, including Bonobos, Warby Parker, Jet, Dollar Shave Club and others.
They are now investing in a space they call The Empowerment Economy, which they describe as:
"The true power of digital connectivity is set to upend the economy at large, powering a new generation of solopreneuers and financial freedom. This movement stands to uplift more people than any economic evolution to date."
Their essay The next revolution in commerce will be driven by the seller goes deeper into this thesis:
If commerce is a transaction between buyer and seller, the face of the seller is evolving with new tools for discovery and purchase that allow for a personal relationship between creator and customer. Beyond a corporation or mass retailer, the seller is now frequently a person or small business. We are seeing a new long-tail retailer learning how to make the internet work in their favor, enabled by social media and without the need to lean into a digital mass marketplace—they simply need a captive audience, which is easier to attract than ever.
Forerunner's chart below summarizes why think this happening at this point in time.
The emergence of niche and solopreneur ecommerce firms is not a new trend.
But it appears to be hitting a growth inflection point, helped in part by the rise of the creator economy. Creators need ways to generate revenue, and an increasingly popular way is by selling merchandise to their fans.
The growth of solopreneur ecommerce is also showing up in the business applications and formation statistics, with applications from solopreneur retail businesses at an all time high.
So we agree with Forerunner and expect solopreneur ecommerce to continue to expand.