Tracey Thompson Wants Founders to Get Clearer — Not Louder
The VMG Ventures Parity Collective Investor breaks down what actually makes a brand fundable in 2025 — and what still gets overlooked.
In a market where capital is cautious and the buzzwords are louder than ever, Tracey Thompson isn’t moved by noise — she’s moved by clarity.
As an Investor at one of the leading investment firms backing visionary consumer and software brands, Tracey sits at the intersection of brand instinct and operational rigor. She’s not chasing trends — she’s investing in founders who know how to tell a real growth story and build the systems to back it up.
In this candid interview, Tracey gives founders the playbook for getting in the room, standing out in the pitch, and staying fundable in a market that’s asking tougher questions. From fractional hiring to cultural fluency, here’s what she wants every emerging founder to know.
What Makes a Brand Fundable Right Now
What are the top three things a founder needs to show to get your attention?
Tracey: I’m investing in a story I believe will lead to exponential growth. That means three things:
A clear need for the product or solution,
A founder who’s uniquely qualified to solve that problem,
A vision for how capital will be used to multiply outcomes.
What matters more now than 12 months ago?
Tracey: Profitability. “Grow at all costs” doesn’t work anymore. We look for brands with a path to profitability, clear product efficacy, and smart pricing, not just aesthetics. Consumers are sharper now. If the value isn’t there, they’ll move on.
What are portfolio companies doing differently in 2025?
Leveraging fractional talent instead of hiring full-time too soon
Moving away from expensive, inefficient growth channels
Securing in-store promotional support from retailers as a key resource
Scrappy Doesn’t Mean Unprepared
If a founder doesn’t have warm VC intros, what’s the real playbook?
Tracey: Be your own salesperson. Build credibility through thought leadership. Actively target investors who’ve just closed funds and are deploying capital in your category. Create a sales plan for investor outreach just like you would for customers.
Also: show up. Ask which events are actually ROI-positive. You don’t need a badge you just need meetings.
Underrated move?
Tracey: Grants and non-dilutive capital. Founders often chase VC dollars for the optics and miss out on opportunities that don’t cost them equity, like accelerators, retailer-backed programs, and operator-led angel groups. Those can be real launchpads.
Launching a brand with limited capital — what’s your 12-month roadmap?
Start small and smart:
Build with your community. Host Zooms. Test retention. Understand what makes people stay or churn.
Run local pop-ups, waitlists, or limited DTC drops to gather real traction and customer insight.
Talk to retailers early — not to sell in, but to understand what they’re looking for.
That gives you data, distribution insights, and retailer interest, which makes your raise stronger and more strategic.
Inside the Investor Mindset
Most common pitch mistake?
Tracey: Avoiding the competition conversation. Every category is crowded. We want to hear why your product wins, not that you're the only one doing it. We also want to see the metrics to back it up (retention, return rates, LTV). That’s what makes your story credible.
What’s one thing you wish founders knew about how you actually evaluate deals?
Tracey: Data tells the story you’re afraid to. Founders want to spin, but we’re investing at an early stage — we expect imperfect data. What we need is honesty: What did you learn? What will you do differently? Show me the plan, not the polish.
What draws you to a founder?
Tracey: I love founders who are sharp storytellers. The ones who’ve lived nuanced, overlooked cultural realities and build brands that speak to others with that same nuance. They know their power and their blind spots. They’re coachable and self-aware. That’s leadership.