In this episode of Turning Pro, Alex Malamatinas, founder of Melitas Ventures, shared his remarkable journey from finance to venture capital and his insights into building successful consumer brands.
With investments in standout companies like Olipop and Magic Spoon, Alex is at the forefront of the consumer packaged goods (CPG) investment landscape. In this episode, he discusses his unique approach to venture capital, the trends he’s most excited about, and what it takes to identify the next billion-dollar brand.
Alex’s career began in finance at Morgan Stanley, followed by stints at hedge funds like Tyrian Investments and Indus Capital. However, his passion for consumer brands was ingrained early on - his father led major companies like Burger King and Smirnoff.
This upbringing ignited his interest in the CPG space, leading him to combine his financial acumen with his desire to work closely with emerging brands. In 2018, he launched Melitas Ventures, a venture capital firm focused on early-stage consumer brands.
One of the core messages Alex shares is the importance of a founder's resilience and vision. He believes successful founders are those who remain steadfast in their goals while being adaptable enough to navigate the unpredictable startup environment.
This blend of conviction and humility is key to attracting venture capital, especially when paired with early market traction.
According to Alex, early-stage investing isn’t gambling; it requires assessing a founder’s ability to turn their vision into a scalable business. His hands-on approach to guiding founders, whether through operational challenges or market pivots, sets him apart from other venture capitalists
In evaluating potential investments, Alex looks for companies that demonstrate early product-market fit and growth.
For instance, his early investment in Olipop, a functional beverage brand, was driven by its impressive sales growth and strong market demand. Alex emphasizes the importance of key indicators like sales velocity and margin strength when assessing a company’s scalability.
He also keeps a close eye on industry trends. Today, he’s particularly excited about the growth in categories like multicultural foods, pet care, and fragrance. These sectors are benefiting from shifting consumer behaviors, with younger generations seeking out high-quality, affordable products that meet their lifestyle needs.
Even the most seasoned investors have regrets. One of Alex’s biggest "misses" was passing on Liquid Death, a water brand, at a $20 million valuation.
Today, Liquid Death is valued at over $1 billion. While reflecting on this missed opportunity, Alex stresses that venture capital is about making informed decisions based on available data and instinct. Still, even with careful analysis, no investor can avoid occasional missteps.
Throughout the podcast, Alex highlights several consumer trends he’s tracking. He’s particularly interested in the fragrance market, which is seeing a shift as Gen Z consumers look for affordable, high-quality alternatives to traditional luxury brands.
Multicultural foods are also a growing category, with more consumers exploring diverse culinary experiences. Finally, pet care remains a booming industry, especially after the COVID-19 pet adoption surge.
A big question for investors today is whether premium, better-for-you brands can weather economic downturns. Alex believes that certain categories, such as pet food and baby food, are more recession-proof.
Consumers are less likely to compromise on quality for their pets and children, which means these categories continue to perform well, even when other sectors face pricing pressure.
Alex Malamatinas combines analytical rigor with a hands-on approach to help founders build the next generation of consumer brands. His deep understanding of the CPG landscape, coupled with his keen sense of emerging trends, makes him a highly sought-after venture capitalist in the space. To hear more about Alex’s insights and his strategy for identifying billion-dollar brands, listen to the full episode of Turning Pro.
Listen to the full episode with Alex Malamatinas and subscribe to Turning Pro for more insider tips from top venture capitalists, founders, and industry experts.
Please fill your information so we can get in touch with you.
Please fill your information so we can get in touch with you.
