What does it actually take to raise angel capital in today’s drinks market?
In this episode, we sit down with Katie Dunn, Principal at Masthead Strategies and an active angel investor across consumer brands, to unpack how early-stage investors are really evaluating beverage companies right now — and where founders are getting it wrong.
Today’s funding climate is no doubt challenging: Capital is tighter, the category is more crowded, and raising money requires far more than a compelling story. Katie shares a clear look at what angels expect — starting with returns.
TL;DR - This isn’t passive money. Angel investors are underwriting for 5–10x outcomes, which means founders need a credible path to scale, strong margins, and a clear view toward exit.
Katie breaks down why most early-stage drinks brands should be raising $250K–$500K to fund 12 months of runway — and tying every dollar to revenue-driving activities like inventory, sales, and market expansion. Overpaying yourself, cleaning up old debt, or raising more than you need? Those are immediate red flags.
We also get into the structural mistakes that kill deals, like messy cap tables, too many small investors, and stacked SAFEs at different valuation caps. These are common in beverage — and often make brands uninvestable before they even reach scale.
At the early stage, though, it’s less about the liquid and more about the founder. Katie explains why she prioritizes customer obsession, category expertise, and coachability — and how she tests for it. Founders who don’t deeply understand their competition, their numbers, or their path to margin expansion rarely make it through diligence.
There’s also an important message on product-market fit: Prove it in the market, not the deck. The brands that win are iterating quickly, listening to customers, and resisting the urge to scale into large retail before they’re operationally ready.
If you’re raising capital — or planning to — this episode is a tactical look at how investors actually think, what they’re looking for, and how to position your brand to win.
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Erica Duecy, co-host: Erica Duecy is founder and co-host of Business of Drinks and one of the drinks industry’s most accomplished digital and content strategists. She runs the consultancy and advisory arm of Business of Drinks and has built publishing and marketing programs for Drizly, VinePair, SevenFifty, and other hospitality and drinks tech companies.
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Scott Rosenbaum, co-host: Scott Rosenbaum is co-host of Business of Drinks and a veteran strategist and analyst with deep experience building drinks portfolios. Most recently, he was the Portfolio Development Director at Distill Ventures. Prior to that, he was the Vice President of T. Edward Wines & Spirits, a New York-based importer and distributor.
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Caroline Lamb, contributor: Caroline is a producer and on-air contributor at Business of Drinks and a key account sales and marketing specialist at AHD Vintners, a Michigan-based importer and distributor.
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