Why Consumer Is a Venture Play Again — Nicole Priel on B2C in the AI Era
Host: Eyal David · Guest: Nicole Priel · About the host
Consumer (B2C) is an attractive venture play again: capital needs are low and time-to-revenue can be weeks, not years. According to Nicole Priel, co-founder of Kinetic Capital and one of Israel's leading B2C investors, being first to market isn't necessary and can even backfire — followers who enter after early players educate the market often land in a better spot.
In this episode
- B2C is a clear venture play — low capital requirements, high scalability, and short time to revenue: you can ship a product and see paying customers within weeks.
- The AI era has dramatically lowered barriers to entry; founders show up at different stages (deck, prototype, first thousand customers), but the expectation today is to bring data and cohort analysis, not just an idea.
- You don't have to be first to market — sometimes it's even harmful; early players educate the market, and whoever comes next enters at a better point in the hype cycle (e.g. cloud security, which matured almost two decades after the cloud was 'invented').
- B2C business models borrow mechanics from the gaming industry (streaks, spin wheels, in-app purchases) and won't necessarily stay subscription-based — there may be a shift to value/success-based pricing.
- Founder-led marketing is a powerful tool with a CAC of zero when done right — Base 44 is an example; an $80M exit for a solo founder is economically equivalent to a billion-dollar exit in traditional venture terms.
- In an investment decision — if you have to 'dig' your way through due diligence to get to a yes, it's probably not a good investment; a sharp instinct for people and opportunities matters, and then you lean into that.
Listen to this episode
Episode Description
Nicole Priel, co-founder of Kinetic Capital, is one of Israel's leading B2C investors. In this episode she explains why now, in the age of AI, consumer is once again an attractive venture play, what fundraising looks like in a world where you can build a product and validate demand within weeks, and why she believes you don't have to be first to market. Throughout the conversation she touches on the B2C Believers community she founded, shifting business models, founder-led marketing, and what makes a founder worth investing in.
Full transcript with speakers and timestamps
Selected quotes
“I actually am of the belief that you don't need to be the first in the market. In fact, I think it can be detrimental to be first to market.”
“If you need to diligence your way to a yes to make an investment decision, it's probably not a good investment decision.”
“An $80 million exit as a solo entrepreneur with a short time frame is the equivalent of a billion dollar acquisition in more traditional venture sense.”
Questions & answers
Why B2C, and why now?
Nicole describes three pillars: B2C is a clear venture play with low capital requirements, high scalability, and short time to revenue; some of the biggest venture outcomes came from consumer waves (mobile: Waze, Candy Crush, DoorDash, Instagram; internet: Google); and we're on the cusp of the third technological revolution in 30 years — AI.
What does an investor expect to see from a founder today?
It's legitimate to talk early, but expectations have risen: come with data and the ability to run cohort analysis. In consumer you can spin up campaigns and validate very quickly, so investors expect you to reach traction in a reasonable time frame. Commercial acumen, hustle, grit, curiosity, and a customer-first approach matter more than tech and product alone.
Is it worth being first to market?
Nicole believes not — and sometimes it's even harmful. Early players invest in educating the market, and whoever comes next reaps the already-educated customers, at a different point in the hype cycle. Her example: cloud security, where most of the value was created almost two decades after the cloud appeared, and which peaked with Google's acquisition of Wiz for $32 billion.
Will the subscription model survive?
Not necessarily. Nicole draws inspiration from the gaming industry — streaks, spin wheels, in-app purchases and advertising. Subscription fits a personal finance app or certain AI coaches, but for other cases on-demand or usage/value-based pricing fits better; Eyal adds that we may move toward success-matrix-based pricing.
What is the B2C Believers community?
A community Nicole founded when she saw that about 70% of her deal flow came from cyber/AI, while Israeli B2C remained on the margins. A first event planned for 30–40 people drew 200 registrants within 24 hours and had to move to a larger venue; the community aspires to be the heart of B2C in Israel and globally.
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