Consumer VC Podcast – Holiday Highlights: Jessica Peltz-Zatulove (Hannah Grey)

Date: December 27, 2022
Host: Mike Gelb
Guest: Jessica Peltz-Zatulove, Co-Founder and General Partner, Hannah Grey

Episode Overview

In this highlight episode, Mike Gelb sits down with Jessica Peltz-Zatulove, co-founder of Hannah Grey, an early-stage venture fund investing in customer-centric founders reimagining work and life. The conversation explores Jessica’s transition from corporate VC to launching a differentiated first-check fund, the evolving nature of consumer and identity-driven brands, the seismic impact of the creator economy, emerging trends shaped by Gen Z, and how brands are experimenting with Web3 and NFTs. Jessica also shares guidance for founders and thoughts on needed changes in the venture capital ecosystem.

Key Discussion Points & Insights

Jessica’s Transition: Corporate VC to Hannah Grey

• Complementary Partnership
  • Jessica credits her seamless transition to the strength and experience of her co-founder, Kate Beardsley.
    • “We think about the value that we can add to founders... it’s just become a really nice complementary transition for me and for us as a firm that we’re building.” (02:51)
• Unique Team Dynamic
  • Jessica’s marketing, commercialization, and branding background pairs with Kate’s deep investment acumen and wide portfolio experience.

The Origin of ‘Hannah Grey’ (03:20)

• Personal and Symbolic Name
  • The firm is named after the founders’ daughters—Raya (Jessica’s) and Gunnison Grey (Kate’s).
  • Stand for generational wealth, balance between work and family, and as role models for all genders.
  • “We wanted to create a firm and a brand that was really differentiated and recognized that human connection and that human relationship we have with our founders.” (03:34)
• Human-Centered Investing
  • Emphasizes long-term, empathetic relationships between investors and founders.

Biggest Opportunities & Trends in Consumer Brands (04:52)

1. The Creator Economy’s Explosive Growth

• The Great Resignation as a Catalyst
  • Millions leaving jobs, opening doors for creator-led business models.
  • “We’ve seen this maturity from influencers into creators... now we’re seeing the creators become the brands.” (05:39)
• C2C: Creator to Community Commerce
  • Creators leverage their direct relationship, feedback loop, and credibility to launch authentic, niche challenger brands.
  • Not just physical goods—media and entertainment are also ripe for the creator-driven model.
  • Referenced Kevin Kelly’s ‘1,000 True Fans’ concept as shaping this bespoke brand movement.
• Gen Z’s Demand for Authenticity
  • New wave wants brands to speak differently, fostering deep, values-driven engagement.

2. The Evolution of Challenger Brands

• Lessons from DTC Movements
  • Past DTC success (e.g., Warby Parker, Casper) often emerged from macro shocks, experience innovation, and emotional resonance during crises like 2009’s financial meltdown.
• Digitally Native, Community-Driven Brands
  • Rise of brands powered by empowerment, inclusivity, and direct conversation (e.g., Billie, Lively).
  • Contextualized in periods of societal change (e.g., MeToo, climate action).
• Today’s Drivers: Destigmatizing and Unfiltered Brand Voice
  • Post-COVID brand voice is radically inclusive and nonjudgmental—products must “remove the barrier and speak to consumers differently.”
  • Gen Z seeks shameless authenticity and relief from social trauma/isolation.
• Case Study: August
  • A startup redefining period care through inclusive, eco-friendly branding, and community.
    • “They purposely speak about it as menstruators, not as feminine products... their brand voice is so radically inclusive.” (11:35)

Web3, NFTs, and Consumer Brands (13:06)

NFTs as Community & Status Symbols

• Beyond Art—The New Membership Card
  • Profile-picture NFTs (e.g., Bored Ape Yacht Club) create exclusive communities, not just digital art.
    • “NFTs are not JPEGs in theory... they’re the new membership cards, a gateway into these exclusive limited supply communities.” (14:07)
• Identity and Creative Expression
  • High-value NFTs function as status symbols for the digital age (e.g., Bored Ape tattoos).
  • Draws parallels with classic iconic brands (Harley Davidson, Apple, Nike).
• Utility in NFT Communities
  • Value comes from utility beyond ownership: airdrops, access, governance, commercial rights.

Brand Partnerships & Web3 Learning Curve (18:03)

• Early Experiments
  • Examples: Arizona Iced Tea x Bored Ape Yacht Club; Dolce & Gabbana, Time Magazine NFT drops.
  • “We’re in the really early innings... these brands that are not native to web3 just really have a ways to go to learn how to connect authentically.” (18:25)
• How Tech Shifts Reshape Consumer Engagement
  • Patterns: initial consumer delight → creation of utility → dependency/addiction.
  • Brands should future-proof by experimenting with Web3, learning to build real community value.

Future of Work and Virtual Economies (21:40)

• Emerging Questions
  • New labor models tied to Web3 and virtual worlds (e.g., play-to-earn, digital property rental).
  • “Are people going to rent out their sweet digital property for events? ... How can that be another way to earn income?” (22:15)

Venture Capital: Diversity & Advice for Founders

Driving Industry Change (23:19)

• Need for Diversity
  • Push for more women, people of color, and minorities in capital allocation roles.
    • “We have to just continue to push the envelope around changing the composition of who controls the capital.” (23:27)
  • Jessica is a co-founder of Women in VC, underscoring her commitment.

Advice for Entrepreneurs (24:09)

• Capital Strategy in Unprecedented Markets
  • “Be really thoughtful about where you take capital from and how much capital you take and what valuation you take it at.” (24:15)
  • High valuations can be a future trap; need to plan for the next round and be able to deliver on the implied growth.
• Founder-Product Fit and Customer Passion
  • “Make sure you have great founder product fit... you care about the customer, not just about the market.” (25:08)

Notable Quotes & Memorable Moments

• "We wanted to create a firm and a brand that was really differentiated and recognize that human connection…” – Jessica (03:34)
• “We believe it’s going to be grounded in this C2C movement because... they have all the recipes that they need.” – Jessica (06:18)
• “Gen Z consumers just want to be given permission to be themselves and have this sense of relief.” – Jessica (09:53)
• “NFTs are not JPEGs in theory… they’re the new membership cards.” – Jessica (14:07)
• “What makes a person want to tattoo a brand on them?... It usually comes down to a few things... fanatic obsession, experience, personal connection.” – Jessica (15:37)
• “How does that utility become like an addiction? And how does that become essential to your way of life?" – Jessica (20:01)
• “We have to just continue to push the envelope around changing the composition of who controls the capital.” – Jessica (23:27)
• “Be really thoughtful about where you take capital from and how much capital you take and what valuation you take it at.” – Jessica (24:15)

Timestamps for Major Segments

• Jessica’s VC Journey and the Hannah Grey Story – 01:30–04:52
• Consumer Brands: Trends and Insights – 04:52–13:06
• Web3, NFTs, and Brand Communities – 13:06–18:03
• Brand Partnerships & Shifts in Consumer Behavior – 18:03–21:40
• The Future of Work in Web3 – 21:40–23:15
• VC Industry Observations & Diversity Needs – 23:15–24:05
• Advice to Founders – 24:09–25:27

Summary Takeaway

Jessica Peltz-Zatulove offers a nuanced, forward-looking assessment of the consumer and venture landscape. She sees the future of brands being driven by authentic, creator-led communities and emergent technologies like NFTs, with Gen Z’s values and expectations reshaping the rules of engagement. Jessica urges founders to be capital savvy, deeply customer-focused, and calls for more diversity among decision-makers in venture capital. Web3 may be in its infancy, but the shift it heralds is—as Jessica and Mike agree—one that no brand, founder, or investor can afford to ignore.