
Nobody Wanted to Invest in Coterie. It Returned Our Fund. | Deborah Benton, Willow Growth Partners
Nobody wanted to invest in Coterie. It was a diaper, a paper product, in a category owned by Huggies and Pampers. Deborah Benton backed it anyway, and in 2025 Mammoth Brands, the company behind Harry's, agreed to buy it. By her account, Coterie and Goodles, which Barilla agreed to buy this year, each returned Willow Growth Partners' fund. She learned what not to do first: she helped take eToys public before the 2000 crash, was COO of ShoeDazzle alongside Kim Kardashian, and was president of Nasty Gal when it raised from Index at what she calls a ridiculous multiple of revenue. This episode is presented by Proppel. Hire A-player marketing and ops talent from the US and LATAM, and get 10% off your first hire: https://www.weareproppel.com/theadvantage Follow Mike on Instagram: @mikewystrach — https://instagram.com/mikewystrach In this episode: ◼ Why a fundraise feels like success but works like a loan ◼ Why a $300 million acquisition can be a great outcome if the company was capitalized correctly ◼ Why angel investing is Vegas money: no information rights, and only the wins get told ◼ Why she watches contribution margin before EBITDA ◼ Why a cold email to a junior associate beats one to a partner ⏱️ CHAPTERS 0:00 Two Exits Returned Her Fund 1:44 The Mistakes of DTC 1.0 2:39 Every eToys Order Lost Money 4:48 ShoeDazzle With Kim Kardashian 5:51 Nasty Gal's Ridiculous Multiple 6:50 A Raise Is an Obligation 10:42 Consumer Is Not Tech 11:05 A $300M Exit Is Beautiful 14:06 Flat to the Last Round 16:08 One More Round, Then Stop 18:40 No Win Without the Founder 19:05 Angel Investing Is Vegas Money 25:27 Carve Out Room for Angels 26:46 Why Not Call It VC 30:19 $3M to $5M First Checks 33:02 Don't Pitch a Fake Vision 35:39 AI Cuts Costs, Raises Competition 38:41 The Gold Standard Metric 39:44 Contribution Margin Before EBITDA 40:30 How to Get a Reply 43:39 Cold Email the Junior Partner 45:12 Why Investors Go Quiet 47:41 Nobody Wanted Coterie 49:58 A Tool for Warm Intros 51:59 Final Thoughts and Wrap Up 🔗 DEBORAH BENTON Willow Growth Partners → https://willowgrowth.com Metal (the warm-intro tool Mike recommends) → https://www.metal.so 🎙️ THE ADVANTAGE All episodes → https://mikewystrach.com/podcast ⚡ PRESENTED BY PROPPEL Proppel places marketing and operations talent from the US, LATAM and beyond, from video editors, designers and media buyers to managers, directors and VPs. It's performance-based: a one-off fee only when you hire, no retainers, and a three-month guarantee on every hire. Get 10% off your first hire → https://www.weareproppel.com/theadvantage
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