Try to get funding for a consumer product without a razors-and-blades revenue stream these days and these institutions will look like you are utterly daft. “Wait, how do we make billions on something where this is no path to vertically integrating all things related to this product?”
“You don’t, but this product serves a need and is a higher quality, higher margin product that has been well received by customers.”
“You mean someone else could get into your business?”
“I mean, yes, we don’t anticipating any blocking IP against competitors in the Fondue business. We found that people who bought our Fondue pot purchase 75% more cheese and 40% more wine. There’s a good exit strategy to a high-end branding company. We sell certain cheese through our website and find our average customer purchases about $30 cheese per month from us.”
“Can you use anyone’s cheese?”
etc…
