In 2024, the world of venture capital is abuzz with the success of yet another large funding round in an enterprise AI company. However, amidst this AI frenzy, a new player called Intuition is disrupting the status quo by focusing exclusively on consumer tech. Based in Paris, Intuition is challenging the conventional wisdom of the VC industry and placing its bets on the potential of consumer-focused startups.
Leading the charge at Intuition are Hugo Amsellem and Etienne Boutan, who will serve as the general partners of the firm. Amsellem is a well-known figure in the consumer tech space, having previously worked for Jellysmack and written extensively about consumer tech and influencers. His insights and understanding of how consumer tech interacts with and shapes culture are expected to be invaluable to Intuition.
Amsellem’s association with The Family, a renowned startup accelerator in Paris, adds further credibility to his expertise. However, recent controversies surrounding The Family, and the alleged diversion of funds by its co-founder Oussama Ammar, have cast a shadow over its reputation. Amsellem, who left The Family in 2019, expressed his disappointment with the situation and emphasized his desire to move on from it.
On the other hand, Etienne Boutan brings a unique perspective to the partnership with his background as a professional basketball player. Prior to co-founding Intuition, he was involved in the AI startup scene through his venture Heex Technologies. His experience in both the sports and tech worlds gives him a well-rounded understanding of the challenges and opportunities in consumer tech.
To kickstart their venture, Amsellem and Boutan successfully raised an initial fund of €15 million ($16 million). Despite a first closing and investments in a few consumer startups in Europe and the U.S., they continue to actively raise funds for the firm. The addition of venture partners, including NBA champion Axel Toupane, co-founder of Daring Eliott Kessas, and Erika Batista, General Partner at On Deck Runway Fund, strengthens their network and expands their coverage in the U.S.
Intuition’s investment thesis is grounded in the recognition of a current lack of consumer tech investment. The inherent risks associated with investing in consumer-focused startups have dissuaded many investors in the past. The challenge lies in generating revenue from products that are often fun and engaging but may struggle to monetize effectively. Furthermore, a handful of dominant tech companies like Meta, ByteDance, and Snap have established themselves as frontrunners in the consumer tech space, making it difficult for new players to break through.
Amsellem acknowledges the perceived uncoolness of working on consumer tech in recent years due to numerous failures and a lack of liquidity. However, he sees this as an opportunity for Intuition. While many investors may be hesitant to publicly embrace consumer tech, Intuition aims to fill the gap and support the next wave of successful consumer companies. The firm plans to invest between €100,000 and €500,000 at the pre-seed or seed stage, selecting over 40 companies for its initial fund.
Recognizing the need for additional revenue streams, Intuition is not just a traditional VC firm. Amsellem emphasizes the importance of adding events to their investment strategy. By creating a community of like-minded individuals working on consumer products and culture, Intuition aims to foster collaboration, knowledge sharing, and the discovery of the next big thing. The firm intends to host a series of events co-hosted with key VC firms, including Felix Capital, a16z, Greylock, and General Catalyst, culminating in a flagship event at Station F in Paris.
The integration of events into Intuition’s business model is reminiscent of Jason Lemkin’s SaaStr conferences, which have become industry-leading events in the SaaS world. While Intuition is still at the early stages of its journey, its commitment to taking consumer tech seriously and building a community from the ground up is an intriguing approach.
In conclusion, Intuition’s focus on consumer tech in a landscape dominated by enterprise AI companies is a bold move. Amsellem and Boutan bring a wealth of experience and expertise to the firm, navigating the challenges and risks associated with consumer tech. By actively raising funds and building a community through events, Intuition aims to become an influential player in the consumer tech space. While the future is uncertain, their unique approach and commitment to innovation present an exciting opportunity to shape the future of consumer tech and culture.
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