Jeremy Cai

For every venture e-com brand, 1,000+ bootstrapped ones do multiples of its revenue

Jeremy Cai argues most venture-backed e-commerce companies inflate how big they actually are, and that quietly bootstrapped brands often dwarf them in revenue.

“but I do think most venture-backed e-com businesses play themselves up to be bigger businesses than the actual business like is. Yeah. There's many more bootstrap— there's like You know, for every italic out there, there's like 1,000+ bootstrapped e-com brands that are doing like multiples of what we're doing.”

The middle-American mom is the cheapest, most loyal customer to acquire

Cai argues founders default to selling to 'people like me' (bicoastal, well-educated, leans left) but the most consistent, cheapest-to-acquire, big-spending, loyal customer is the middle-American mom.

“Um, but I think the actual most consistent, um, customer that's actually the cheapest to acquire is the middle American mom. Um, and she's also the, like, a pretty big spender too. Um, and if you get her loyal to one thing, like, she's going to be with you for, you know, years and years and years.”

Steal thisStop selling only to people like you; target the middle-American mom for cheaper acquisition and longer loyalty.

A 50/50 rev-share can 5x a factory's margins

Cai explains that factories typically make just 15-20% (sometimes 25-30%) on cost of goods while brands mark products up 10x; offering a factory a 50/50 revenue split on retail price more than 5x's its margin in exchange for distribution.

“and by the way, for factories, like normally they'll make 15 to 20% on top of cost of goods, you know. This is like regardless of the category, regardless of where you are, whether you're in the US or China or, you know Italy, it might be 25-30% sometimes, but that's like on cost of goods. A brand will buy that and sell it for 10x, like normally. So if you even said like, hey, to a factory, hey, we will do, um, a 50-50 revenue split, you're already like on a retail price and you match what's on par with the rest of the industry, you're basically like more than 5xing their margins.”

There isn't enough cold storage in the US for a new perishable brand

Cai explains cold chain logistics (reefer trucks, dedicated cold stores) is mandatory for any perishable, non-dry-goods brand to reach retailers like Whole Foods, and that grocery's COVID boom plus the shift to D2C fulfillment has left a genuine shortage of cold storage capacity.

“So, so yeah, it's, there's basically not enough like cold storage in the US right now for like a new brand if you want to start.”

Finish the QR-code ordering loop American restaurants left half-built

Having lived in China, Cai notes US quick-service restaurants stopped at QR codes that just show a menu, while in China the same code lets you order and pay (via Apple Pay, Venmo, Cash App); he argues a player like Toast should connect that final transaction step.

“Like right now, the issue, like right now the innovation on menus and ordering has on quick service restaurants has ended at a QR code showing you the menu. Like, I don't know why anyone— like, Toast should do this. Like, they should just connect the final step, which is like actually let them transact. And this is how like every restaurant in China works, whether it's a high-end one or a low-end one.”

Steal thisConnect QR-menu scanning straight to ordering and payment, the way Chinese restaurants already do.

Italic paid ~$115K for its domain and has raised ~$15M

Jeremy Cai reveals Italic paid about $115K for italic.com (and ~$80K for Fountain.com) and has raised roughly $15M for the company.

“We've raised about $15M now.”