Podcast Summary: DTC Podcast – Ep 521: How RYSE Used Meta Ads to Raise $10M+ in Equity (Not Just Sales)

Release Date: June 30, 2025
Host: Eric Dick
Guest: Trung, Founder of RYSE

1. Introduction to Trung and RYSE

In Episode 521 of the DTC Podcast, Eric Dick welcomes Trung, the founder of RYSE, a direct-to-consumer (DTC) brand specializing in motorized window shades. Trung shares his journey of transforming a simple home improvement idea into a successful ecommerce venture.

2. Hero's Journey: Founding and Product Development

Trung delves into the inception of RYSE, highlighting the personal motivation behind the brand.

Trung [02:08]: "I wanted to motorize my window shades. That's it."

He explains how high costs associated with existing motorized shades led him to identify a market gap. Over three years of research and development, Trung and his team created a proprietary motorized pulley system tailored for standard window shades, eliminating the need for expensive replacements.

Trung [03:32]: "The R&D process was the hardest part because the concept was so new. We developed everything from the ground up."

This intensive R&D effort resulted in strong intellectual property (IP) protections, giving RYSE a competitive edge in the market.

3. Growth Strategies: E-commerce and Funding

Initially, RYSE launched on crowdfunding platforms like Indiegogo and Kickstarter, successfully raising an angel round. This early traction paved the way for sustainable growth through traditional ecommerce channels.

Trung [04:47]: "Since we launched, it's been definitely just E-commerce. Facebook ads, Meta ads, Google, those are the primary channels."

Trung emphasizes the importance of diversifying marketing strategies, including exploring Amazon and upcoming ventures into TikTok advertising with a new sister brand.

4. Equity Crowdfunding Strategy

A significant portion of RYSE’s $10M+ funding was achieved through equity crowdfunding, a strategy Trung adopted following a setback with traditional VC funding during the COVID-19 pandemic.

Trung [06:46]: "Equity crowdfunding fits right after an angel round, maybe in line with the VC round. It works well when you do have some traction, a prototype, concept, sales."

Trung outlines how equity crowdfunding allowed RYSE to maintain control over their destiny, circumventing the limitations often imposed by venture capitalists who prefer high-tech, scalable sectors like AI over physical products.

5. Implementing Equity Crowdfunding with Dealmaker

RYSE utilizes Dealmaker, likened to the "Shopify of fundraising," to manage their equity crowdfunding campaigns.

Trung [09:02]: "We use Dealmaker. They facilitate the entire investment transaction, ensuring compliance with SEC and FINRA regulations."

The platform enabled RYSE to present their pitch effectively, manage investor relations, and streamline the investment process, resulting in a diverse investor base with average check sizes around $2,500.

6. Utilizing Amazon's Apex Program for IP Protection

Protecting their innovative technology was crucial for RYSE. Trung highlights the advantages of Amazon's Apex Program in safeguarding their IP from counterfeiters, particularly Chinese manufacturers.

Trung [15:16]: "Amazon’s Apex program allows us to file complaints against infringing sellers efficiently. We've successfully removed hundreds of knockoffs, maintaining our product's integrity on the platform."

This program proved instrumental in minimizing competition from copycats by leveraging Amazon’s robust enforcement mechanisms, thereby preserving RYSE’s market position.

7. TikTok Strategy and Diversifying Distribution

Facing challenges with high price points on TikTok, Trung strategized to launch a more affordable sister brand to tap into TikTok’s younger, price-sensitive audience.

Trung [18:23]: "We're launching a sister brand priced between $79 to $99, which is the sweet spot for TikTok, allowing us to capture a different segment without diluting the RYSE brand."

This approach includes leveraging TikTok Shop and an affiliate model, encouraging creators to earn commissions based on sales performance, thus ensuring a low-risk, high-reward collaboration for both the brand and influencers.

8. Navigating Tariffs and Manufacturing Diversification

The imposition of tariffs under the previous U.S. administration prompted RYSE to diversify their manufacturing base beyond China to the Philippines, ensuring resilience against potential trade disruptions.

Trung [21:58]: "Our factory in China can shift production to the Philippines if tariffs escalate. Diversifying our manufacturing locations is key to maintaining our supply chain stability."

This strategic diversification safeguards RYSE against geopolitical fluctuations, ensuring uninterrupted production and distribution.

9. Future Goals and Challenges

Trung outlines RYSE’s vision to become the go-to brand for smart window shades, drawing parallels with brands like Ecobee and Nanoleaf that have successfully dominated their niches. However, he acknowledges current challenges, including reduced Return on Ad Spend (ROAS) and slower sales conversions, likely influenced by broader economic uncertainties.

Trung [24:34]: "In Q1, we're seeing lower ROAS and sales traction, which aligns with the trend of consumers tightening their purse strings."

To counteract these challenges, RYSE is heavily investing in their new, more affordable sister brand to capture a broader audience.

10. Advice for Aspiring Entrepreneurs

Concluding the episode, Trung offers valuable insights for entrepreneurs, emphasizing the importance of securing IP and leveraging online platforms for both sales and fundraising.

Trung [25:52]: "From my experience in hardware and consumer electronics, IP is very important. Definitely secure that IP and leverage what's available with Amazon to protect it."

He encourages startups to explore non-traditional fundraising avenues like Regulation CF or Regulation A in the U.S. for equity crowdfunding, especially for consumer-focused brands with strong online sales capabilities.

11. Final Thoughts

Trung expresses confidence in RYSE’s strategic direction and highlights the continuous roll-out of innovative products in the smart home space. He underscores the significance of maintaining a robust distribution channel and building a strong, recognizable brand to ensure long-term success and a favorable exit strategy.

Trung [22:57]: "We want to build the brand. We want to focus on window blinds, shades, automation. We aim to be the solution people think of when they think of smart blinds and smart shades."

Eric Dick wraps up the conversation by reaffirming the value of Trung’s insights and his appreciation for RYSE’s innovative approach to scaling through equity crowdfunding and strategic marketing.

Key Takeaways:

• Equity Crowdfunding as a Viable Alternative: For DTC brands with tangible products and existing traction, equity crowdfunding can be an effective means to raise significant capital while retaining control.
• IP Protection is Crucial: Leveraging platforms like Amazon’s Apex Program can protect against counterfeiters and maintain brand integrity.
• Diversified Marketing Strategies Boost Growth: Utilizing multiple channels, including emerging platforms like TikTok Shop, and adopting affiliate models can expand reach and optimize marketing spend.
• Manufacturing Diversification Mitigates Risk: Shifting production locations in response to geopolitical and economic changes ensures stability and scalability.
• Focused Brand Building Ensures Long-Term Success: Specializing in a niche, protecting IP, and building a strong distribution channel are fundamental to becoming a leader in the smart home market.

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