Why the next wave of unicorns will be female-founded consumer brands rather than tech

Tech is stalling. Consumer is surging. And if you’re still waiting for the return of traditional VC exits – you’re already behind. 

Here’s the hard truth: liquidity has dried up in venture tech. IPOs are trickling.

M&A deals have slowed to a crawl. According to PitchBook’s 2023 US VC Valuation Report, exits in the tech space are down more than 80% from their 2021 peak.

The industry that once chased scale at all costs is now staring down a long road of delayed returns and overinflated portfolios. 

But while Silicon Valley waits, women-owned consumer brands are building profitable, scalable and culture-defining businesses that smart investors are finally waking up to. 

From Lip Gloss to Liquidity: female consumer unicorns

Let’s look at the scoreboard: 

• MCoBeauty, Australia’s fastest-growing beauty brand, founded by Shelley Sullivan in 2020, was acquired at a A$1 billion valuation earlier this year by DBG’s Dennis Bastas, who bought a half stake in 2022, following mass retail partnerships and founder-led execution. Sales are expected to top $328m in FY25.
• Rhode, co-founded by Hailey Bieber, 28, hit a US$100 million valuation in under two years. She sold it to e.l.f. last month for US$1bn. Strategic support from Nick Vlahos (ex-Honest Co.) helped Rhode scale fast with a community-first, SKU-light model. 
• Touchland, transformed hand sanitiser into a premium, high-design product now sold through Sephora, Ulta, and Target and founder Andrea Lisbona signed a deal worth up to US$880m (A$1.36bn) last month.

Add to that: Cay Skin, OUAI, Summer Fridays, and Tower 28 each led by visionary women redefining what consumer scale looks like.

These brands aren’t just building cult followings – they’re building empires.

In fact, the Glossier flagship store in New York now generates more revenue per square metre than the Apple Store, proving that when women own the brand, the customer, and the experience, the results speak for themselves. 

These aren’t anomalies. They are signals of a seismic shift. Women founders are executing with clarity, culture-fit, and commercial traction.

These brands don’t just have hype – they have margins, loyal followings, and omnichannel scale. Most importantly? They’re delivering returns.

Meanwhile, in tech… 

VC-backed tech exits are at historic lows. IPOs have plummeted. Secondary markets are stagnant. LPs are anxious. And still – most investors overlook consumer as a viable, scalable asset class, especially at the early stage. Particularly when it’s women-owned. 

That’s not just an oversight. It’s poor portfolio construction. 

The case for backing women in product 

At F5 Collective, we believe the next 3 – 5 years of breakout investment returns will come not from tech, but from consumer. Here’s why: 

• Women control 80% of consumer purchasing power 
• CAC is falling via community-driven, content-first models 
• Consumer products drive real revenue – often faster than SaaS 
• Exit paths are diverse: strategic buyers, rollups, PE, or conglomerates
• And importantly: women are building scalable, defensible companies – not side hustles, not lifestyle plays, but businesses with product-market fit and staying power 

The consumer landscape isn’t just alive – it’s accelerating. The cost of launching is lower than ever. Distribution is borderless. Micro-communities are the new conversion engines.

Brand experience is the new moat. 

And women founders? They’re leading with unmatched instinct, discipline and grit.

What investors are missing 

Consumer investing isn’t “easy.” It’s brand-reliant, margin-sensitive, and operations-heavy.

That’s why many investors avoid it – they don’t have the playbook. 

In a market where capital has grown increasingly inaccessible and traditional funding models have failed to evolve, it’s time for a new path forward. One that is inclusive, commercially rigorous, and actually reflects how women build. 

Consumer is not a niche. It’s not a footnote. It’s the future of venture. 

VCs that are still betting everything on deep tech with a 10-year horizon and no revenue are not just behind, they’re missing the wave entirely. 

The next unicorns won’t come out of code. They’ll come from culture, community, and commerce.

And they’ll be led by women. 

• Tracey Warren is CEO & Bree Kirkham, COO, of venture capital firm F5 Collective.