![]() ![]() ![]() It's not realistic, so we had to move upstream where the growth rates, and the consumer traction are more proven than early brands.” “Young brands are going to have challenges getting funded, and we cannot be the only funder at the table. “Capital markets have changed dramatically, and this is a result of the macroeconomic environment,” she said. That enables the firm to make safer investments since these businesses are more maturely developed, according to Facchina. Siddhi Capital closed fund I at $68.65 million in 2020 (PitchBook data), and has since evolved during fund II from investing in early-stage CPG to mostly growth-stage companies. “As Aura Bora continues to grow, what it's going need from Siddhi as a partner will be more than just capital.” “We show up with talent, and that talent changes as the life cycle of a business changes,” said Facchina. Obviously, we cannot make investments where we feel like returns are not viable but for us to have an impact in a business, the company needs to leverage the value we bring” - that includes everything from offering pricing and channel strategies to providing marketing opportunities throughout the lifecycle of Siddhi Capital’s portfolio. She added: “We strive as a firm to build trust and empathy in our partnerships first and foremost. That’s how we became very comfortable with Paul as a founder.” “For years, we’ve prepared Paul that we were likely not the right investing partner because we thought the beverage category has so many challenges from tolling fee to packaging accessibility,” Facchina explained, “but he never shied away from building what we would consider a very cost efficient, scalable supply chain, and he continued to trust Siddhi on providing services that help build a solid operating infrastructure. That’s also helped Aura Bora ultimately earn the trust from a growth equity firm that typically invests in companies generating $15-20 million in annual run rate. “Looking back now,” Voge said, “we’ve made the right decision” to tackle can shortages. To put it into perspective, Aura Bora once betted nearly 65% of all the money it raised on buying raw materials and cans, according to Voge, who claimed the company at the time had around 10 times as many empty cans in the warehouse as final products it shipped to retailers. Additionally, the company has also invested heavily in stocking up on inventory, sourcing packaging at affordable price points - “that's hard when you're raising capital on a consistent basis, and you need those dollars to pedal your brand forward,” she added. “Aura Bora has changed manufacturing partners a couple of times, not necessarily because the manufacturer couldn't service them, but because Paul had a much bigger vision, and knew he had to invest in greater volume,” said Facchina. Voge since Aura Bora’s launch, attributes the company’s meteoric rise to its constant investment into back-end scalable supply chain. Cofounder and co-managing partner of Siddhi Capital, Melissa Facchina, who has become acquainted with Mr. ![]()
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