Luca Schnetzler Launches Netz Capital: Why Angel Investment is so important for Direct to Consumer Brands

Netz Capital is an angel investment firm focusing on boosting promising start-ups. The firm was launched by Luca Schnetzler, a well-known professional footballer who was born in Germany. Netz Capital has so far made some smart investments in tech start-ups and direct-to-consumer brands.

The reason behind choosing tech start-ups for investing is really simple. With the booming growth of technology and advancement in the digital space, tech start-ups will see a flourishing future. With direct-to-consumer brands, the advantages for angel investments are diversified. Besides gaining a substantial share of the company, DTC brands can also benefit their business angels in several other ways.

The angel investment firms operate with the sole motive of maximizing gains or earning soaring interest on their investments that will be higher than the present market trend. With direct-to-consumer brands, the prime advantage is there are no middlemen to share the profit. The manufacturer directly sells that product to the consumers. Profit margins for wholesalers and retailers are omitted.

Moreover, when investing in direct-to-consumer brands, business angels are free to make any decision as the return is generally based on a large share of the company and no assets are involved. The business angel can offer necessary guidance to the DTC brand to grow into a multi-million dollar company.

Usually, angel investors start with a nominal amount of investment for DTC brands as no collaterals are involved. However, with the rapid growth of the brand, the business angel can boost it further with more investments. This way investment risks can be minimized and the business strategies of the DTC can also be scrutinized.

Netz Capital has made some wise investments so far by keeping a close eye on the market trends and analyzing the business plans and policies of the start-ups. The angel investor has helped Vibe, a haircare brand, become one of the fastest-growing DTC brands. Vibe has a range of products for men that include shampoo, hairspray and pomade. With its growing popularity among consumers, Vibe has also introduced a body care line with activated charcoal body wash. The brand uses an affiliate program to expand its reach and also maintains an active customer care service.

Apart from DTC brands, Netz Capital has also made several investments in tech start-ups like Social SnowBall, an affiliate marketing app, and Steam commerce, an end-to-end solution provider for e-commerce. Another smart investment by Netz Capital is in Chirpsh, a customer care and service company that is helping other businesses to grow with a strong customer base.

Angel investments are also subject to risks like all other investment schemes. The brand may fail to execute its plans accurately, or changing market trends may affect the growth of the company. Whatever the reason, an investor will have to suffer the brunt if the company runs into losses. In such cases, the chances of retrieving the invested amount drops to zero.

Netz Capital has proved itself to be a leader in this sphere. The angel investor has made well-informed decisions going by in-depth market research and keeping upcoming business opportunities in mind. Netz Capital stands out as an example for business angels to expect lucrative returns by investing in DTC brands.