The Consumer Landscape Is Changing
We explore the latest insights across consumer tech—from evolving business models and breakthrough startups to the trends redefining how people live, shop, and connect.
Welcome to NEW ECONOMIES, rooted in my experiences working in venture capital. From inside the venture world, one thing is clear: we’re not just in a tech boom—we’re living through a full-blown economic rewrite. New platforms, new business models, and evolving public market strategies are reshaping everything.
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THE CURRENT STATE OF CONSUMER TECH
After a relatively quiet few years for consumer startups—with only ~7% of venture capital going into the category and few companies reaching unicorn status—things may finally be turning a corner.
In just the past month, we’ve seen some major achievements. Rhode, the beauty brand founded by Hailey Bieber, sold for $1 billion, and Unilever acquired the personal care brand Wild. At the same time, new capital is flowing in: Creator Ventures announced their second fund at $45 million, and The Sidemen—one of YouTube’s most popular creator groups—launched their own $25 million venture firm, Upside.
Why have we not seen much activity in recent years and why might this change?
In recent years, consumer startup activity slowed due to fears of platform risk—founders were wary that companies like Facebook or competitors could easily replicate their ideas—along with market saturation and a lack of clear differentiation in product offerings.
This led to hesitation from both entrepreneurs and investors, particularly in crowded or easily commoditized spaces. However, that landscape is shifting as AI becomes more accessible and integrated into consumer experiences. The question has evolved from “What if someone copies me?” to “How can I use AI to build smarter, more personalized products?”
This inflection point is enabling a new generation of startups to create innovative, defensible business models across categories such as AI-driven commerce, social tools, and wellness—driving renewed interest and capital into the consumer space.
We take a closer look at how consumer business models are shifting as well as the latest startups to watch.
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NEW CONSUMER CATEGORIES ARE BEING CREATED
Now that the consumer space is being reawakened by AI, it’s worth asking: What are the actual business models and categories emerging from this shift? Some of them include:
🧠 1. AI-Native Social Apps
Social apps are being reimagined—less about broadcasting, more about self-awareness and smart reflection.
Think: journaling tools that actually get you. Social feeds that summarize what you’ve been watching, reading, or even thinking. And yes, bots that comment on your behalf.
🤖 2. AI Companions & Daily Agents
Remember when AI was just for productivity? Now it's getting personal. We’re talking emotional support bots, calendar wizards, AI tutors for your kids, even digital parenting copilots. If there’s a role in your life, someone’s building an AI to fill it.
🛍️ 3. Hyper-Personalized Commerce
Shopping is moving from endless browsing to hyper-targeted curation. AI assistants are learning your taste—not just your size—and building out mood-based recommendations, customized marketplaces, and dynamic try-on experiences.
🎓 4. The Education Stack, Rewritten
Forget generic courses. Learning is becoming gamified, ultra-specific, and creator-driven. AI tutors now adapt to your vibe. Mini-courses are popping up from influencers with real experience. It’s bite-sized, on-demand, and supercharged with machine learning.
🎨 5. AI-Enhanced Creativity
Creativity is no longer gated by tools or time.
Need a video, song, or story? Just prompt it. Want to turn a tweet into a podcast, then into a course? Done. AI co-creators are letting people go from idea to execution in minutes—whether you’re a novelist or a meme lord.
🧘 6. Wellness & Longevity
Health is no longer just about steps and heart rate.
We’re seeing a wave of AI-powered wellness tools—from personalized supplements based on your genome to apps that coach your breathing and sleep. Even diagnostics are going DIY, thanks to smarter sensors and interpreters.
🏡 7. The Emotionally Intelligent Home
Smart homes are finally growing up.
Now they’re mood-aware, habit-responsive, and way less robotic. AI can adjust lighting based on how you feel, automate your day around your energy levels, and talk to you like a real assistant—not just a command center.
All of this is pretty impressive however with AI shifting incredibly fast, just wait and see how far we progress in the next year. The landscape will look totally different.
We take a closer look at the consumer startups you should be paying attention to.
CONSUMER STARTUPS TO WATCH
With consumer activity picking up, we wanted to highlight a few exciting startups that are making waves across the ecosystem. These startups are currently building in one of the following categories:
AI Tools
DTC Brands
Marketplaces.
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EXITED CONSUMER STARTUPS
After a long quiet stretch, exits are back on the radar in consumer tech—and they’re arriving with momentum. We’ve already seen a handful of startups reach impressive milestones this year, signaling renewed confidence in the category from both acquirers and investors.
Just this week, Rhode—Hailey Bieber’s skincare brand—was acquired in a deal reportedly worth $1 billion, marking one of the largest celebrity-led consumer exits in recent memory. Earlier this year, personal care brand Wild, known for its sustainable deodorants and refillable packaging, was acquired by Unilever for $280 million, validating the power of modern, mission-led DTC models.
Strategic buyers are clearly back in the market, and they’re not just looking for scale; they’re looking for strong communities, brand affinity, and unique value props. With a growing number of consumer startups reaching maturity, we may be entering a new wave of meaningful exits—something the sector has sorely missed in recent years
