Podcast Summary: Fashion People – "Meet the Investor Behind Skims, The Row, and Your Favorite Weed Drink"

Release Date: June 20, 2025

Introduction

In this episode of Fashion People, host Lauren Sherman sits down with Nick Brown, co-founder and managing partner at Imaginary Ventures, a prominent investment firm specializing in consumer brands. Nick brings a wealth of experience, having invested in well-known brands such as Skims, The Row, and innovative companies in the cannabis beverage space.

Guest Background and Career Path

Nick Brown delves into his journey in venture capital, highlighting how his upbringing in New York during the 1990s influenced his passion for fashion and consumer brands.

[07:50] Nick Brown: "I was the beneficiary of some luck. Growing up in New York in the '90s was a pivotal time for fashion and consumer brands."

He recounts his early career at JP Morgan in the consumer healthcare retail group, where he realized banking wasn't his true calling. This realization propelled him into venture capital, where he began his investment journey at 14 West Venture Partners under the mentorship of Noam Gottesman.

Transformation of the Venture Capital Landscape

Nick discusses the evolution of the venture capital (VC) community over the past 15 years, emphasizing the increasing focus on consumer brands and the shift from traditional tech-centric investments.

[09:43] Nick Brown: "As we did more deals in the consumer space, we built a stronger brand and expertise around that domain."

He highlights how challenges in the market often spur innovation and grit, leading many of his peers to embark on unique investment journeys during turbulent times.

Investment Philosophy and Branding

A significant portion of the conversation centers on Nick's investment philosophy, which prioritizes brand integrity and founder vision over traditional VC metrics.

[20:08] Nick Brown: "I've always led with a founder brand and vision. If you don’t build a great product and delight the customer, you're setting yourself up to fail."

Nick contrasts his approach with that of traditional VCs, who historically prioritized network effects and technology over product excellence and customer satisfaction. This focus on brand and product has been instrumental in the success of the brands his firm invests in.

[22:32] Nick Brown: "Every successful business I know has a singular focus on delighting the customer and building extraordinary products from day one."

Building Strong Relationships and Community Engagement

Nick emphasizes the importance of relationship-building within the fashion and consumer spaces. By being a specialist, Imaginary Ventures can forge deeper connections with founders and brands, ensuring mutual growth and success.

[25:27] Nick Brown: "By being very specific in our sector, we can invest more in relationships and different points of contact."

He shares how collaborating with influencers and leveraging platforms like NAT has been pivotal in scaling the brands within their portfolio.

Sector Insights: Beauty, Apparel, and Cannabis Beverages

The discussion transitions into specific sectors Nick has invested in, including beauty, apparel, and cannabis beverages. He outlines the unique challenges and opportunities within each sector:

• Beauty: Balancing direct-to-consumer (DTC) models with wholesale channels like Sephora. Nick notes the importance of building strong brand narratives to navigate the competitive landscape.

  [42:25] Nick Brown: "Beauty is a hybrid of wholesale and DTC. Building a meaningful direct channel alongside wholesale is crucial."

• Apparel: Highlighting the difficulty in maintaining profitability and scalability, Nick underscores the need for brands to innovate and adapt continuously.

  [34:53] Nick Brown: "Apparel's margin profiles and distribution models are vastly different, making direct-to-consumer approaches more challenging."

• Cannabis Beverages: Discussing the emergence of brands like Can Not and the unique positioning within a rapidly growing market.

  [38:56] Nick Brown: "The cannabis beverage space is evolving, and we're seeing innovative business models that cater to modern consumer preferences."

Future of Consumer Behavior and Market Trends

Nick offers his perspective on evolving consumer behaviors, particularly the shift towards physical retail post-COVID-19, and expresses a bullish outlook on the resurgence of in-store shopping experiences.

[86:38] Nick Brown: "I'm more bullish on physical retail right now. People are exhausted with online shopping and crave deliberate, in-person experiences."

He anticipates continued growth in physical stores as consumers seek meaningful and engaging shopping environments, which present new opportunities for consumer brands to connect with their audience.

Exit Strategies and Market Outlook

Addressing the current state of exit scenarios for consumer brands, Nick discusses the challenges and potential avenues for profitable exits, including private equity and strategic sales.

[78:52] Nick Brown: "Strategic sales in apparel will continue to be challenging. Private equity and even strategics can offer exits, especially for businesses hitting significant revenue milestones."

He remains cautiously optimistic about the future, noting that successful exits will likely inspire more seasoned investors to enter the space, provided that high-quality brands continue to emerge.

Conclusion and Final Thoughts

The episode wraps up with Nick reflecting on the importance of creativity and commercial acumen in building enduring consumer brands. He reiterates his commitment to investing in brands that not only have strong product offerings but also possess the ability to connect deeply with their customers.

[72:06] Nick Brown: "If you don't nail both the creative and commercial aspects, it's going to be hard to succeed as a brand."

Lauren Sherman thanks Nick for his insights, highlighting the valuable discussion on navigating the complex landscape of consumer investments in the fashion and beauty industries.

Notable Quotes:

• "Every successful business I know has a singular focus on delighting the customer and building extraordinary products from day one."
  — Nick Brown [22:32]

• "I'm more bullish on physical retail right now. People are exhausted with online shopping and crave deliberate, in-person experiences."
  — Nick Brown [86:38]

• "If you don't nail both the creative and commercial aspects, it's going to be hard to succeed as a brand."
  — Nick Brown [72:06]

This episode provides a deep dive into the intricacies of investing in consumer brands, offering listeners valuable perspectives on building and sustaining successful brands in today's dynamic market.