The Illusion Era

In 2017, I found myself in a rented mansion, flanked by rented Lamborghinis, sitting in on a dropshipping course I hadn’t paid for. Someone I’d interviewed for an Instagram account had invited me, free of charge, to a program they were selling for thousands. The air smelled like fake Supreme bags and borrowed wealth.

This was the golden era of internet money—where anyone with a Shopify account, a few Facebook ads, and the right supplier could print cash overnight. Kids in their early twenties were flipping generic products from China and selling the dream of passive income. It worked—until it didn’t.

The cracks formed quickly. Consumers caught on. Fast money turned into fleeting businesses. The so-called “internet millionaires” either faded away or pivoted—some into bootstrapped AI startups, others into more sustainable businesses. The rest disappeared into the algorithm.

At the same time, something else was happening. Consumers weren’t just getting scammed; they were getting smarter. The same internet that enabled facades also tore them down. Information became easier to access—more reviews, more behind-the-scenes breakdowns of how these businesses really worked.

Trust is the New Currency

Today’s consumers don’t just buy; they investigate. They know influencers get paid for their recommendations. They vet purchases meticulously—99.5% of online shoppers read reviews, and 87% do so regularly. It’s no longer enough for a brand to make big promises; consumers demand proof. They scrutinize supply chains, ethical sourcing, and long-term value. They’re skeptical, informed, and harder to fool.

And this shift isn’t limited to retail.

In B2B, buyers have evolved too. Companies no longer fall for glossy sales decks and inflated metrics. They look deeper—demanding real traction, scrutinizing financials, and questioning long-term viability before signing a contract.

The same goes for investors. The era of capital chasing hype is fading. Modern investors, much like today’s consumers, prioritize real business models, durable growth, and founders who execute beyond the first wave of attention. Across every buying decision—whether it’s a $30 skincare product, a six-figure enterprise software deal, or a multi-million-dollar startup investment—the rules have changed.

As investors, we see this as more than a trend. It’s a fundamental rewiring of trust as the ultimate currency—creating stronger brands, more resilient companies, and deeper competitive moats for those who build with substance.

The companies that win today? They don’t sell illusions. They sell proof.

Transparency: The New Competitive Moat

In an age where information is abundant, transparency is no longer optional—it’s a competitive advantage.

Amazon built its empire not just on convenience, but on trust. Reviews, seller ratings, and customer feedback loops ensure that the best products rise to the top. The same dynamic applies across industries. A company with a weak product and great marketing can get attention—but it can’t sustain loyalty.

Take Patagonia. Their supply chain transparency isn’t a marketing gimmick; it’s a business strategy. By proving their commitment to ethical sourcing, they’ve cultivated one of the most loyal customer bases in retail.

The same principle applies in SaaS. Yesware’s approach to founder transparency isn’t just about openness—it’s about de-risking the purchase decision for business buyers. In a world of inflated claims, realness wins.

In addition to product-market fit, companies need 'trust-market fit.' A strong narrative, validated by real customer success, functions as an economic moat—raising LTV and lowering CAC.

Transparency isn’t just good ethics—it’s good economics.

The Vibe Tax: Why Storytelling Drives Value

Beyond transparency, there’s another key factor in trust-building: effective storytelling.

Consumers and investors alike don’t just want to see numbers; they want to understand why a company exists and how it delivers value. This is where the concept of the “Vibe Tax” comes in.

The “Vibe Tax” is the premium companies either earn or lose based on their ability to translate trust into narrative. The best companies don’t just build a great product; they make people believe in it. And belief is an economic moat.

Think of Figma. Not just a collaborative design tool; it is a movement. By building an active community of designers and sharing product updates transparently, they created a narrative of innovation that made it irresistible—not just to users, but to investors and acquirers.

This is why the best companies invest in more than just product and marketing—they invest in trust.

Community: The Fastest Trust Engine

Trust isn’t bought; it’s built. And the fastest way to build it is through community.

Blender was once a niche 3D software, overshadowed by expensive alternatives like Maya and 3ds Max. But by going open-source and letting users build on top of it, it became an industry standard—trusted because it’s community-driven. The same applies across AI, SaaS, and consumer products. Trust isn’t bought; it’s built.

AI startups leveraging Discord, like Vapi, create real-time feedback loops that turn early adopters into evangelists. When people invest in a community—whether through code, reviews, or discussions—they become its strongest defenders.

The playbook is simple: trust first, monetization later.

This is a dynamic we’re seeing across industries. Companies that embed community into their product don’t just acquire users; they build ecosystems. The most durable brands don’t rely solely on marketing—they let their users tell the story.

Health, Wellness, and the Conscious Consumer

One of the clearest examples of this shift is in health and wellness. Today’s health-conscious consumers aren’t just looking for products; they’re looking for deeper insights into their bodies.

Companies like Ezra, Prenuvo, and Function Health are democratizing advanced diagnostics, giving people unprecedented access to data about their health. Meanwhile, our portfolio company MoldCo is redefining the treatment of complex illnesses—mold-related disease, Lyme, long COVID—by creating a data-driven platform that owns the entire patient journey.

Each interaction on their platform feeds into an evolving algorithm that refines treatment protocols and anticipates emerging health trends. More patient data leads to better diagnostic accuracy, which in turn drives better outcomes and cost efficiencies. This is trust, compounded.

Sustainability as a Business Imperative

As consumers demand more transparency in health, they’re applying the same scrutiny to sustainability. Gen Z, in particular, is leading this shift—putting ethical business practices ahead of traditional brand loyalty.

💰 Gen Z spending will hit $4.4T by 2030.
🛍️ They prioritize sustainability over brand names.

Brands that align with this shift aren’t just making ethical choices—they’re making smart business decisions.

Take Biom, a Fund 1 portfolio company. They’re reimagining household essentials with plant-based, home-compostable cleaning wipes that replace plastic-heavy alternatives. In a market where over 90% of wipes contain plastic and toxic chemicals, Biom has built a brand that resonates with the next generation of consumers.

Their commitment to sustainability isn’t just a marketing angle—it’s a defensible moat. As a result, Biom isn’t just growing; they’re scaling aggressively, landing national retail deals with Target and Whole Foods.

Sustainability isn’t a niche preference anymore. It’s a buying decision.

The Future: Proof Over Promises

The dropshipping era was built on secrecy—fake wealth, fake scarcity, fake brands. But the internet has shifted. The same tools that once fueled illusions now reward transparency. Consumers, investors, and businesses are no longer swayed by surface-level hype—they demand substance.

The future belongs to those who build in the open, where trust isn’t just a virtue but a competitive advantage, where proof outweighs promises, and where communities create the strongest economic moats.

For founders, this means one thing:

Hype fades. Trust compounds. The winners won’t be the loudest—they’ll be the most real.

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Further Reading

📖 The Cold Start Problem – Andrew Chen (Network effects and transparency in growth)
📖 No Filter – Sarah Frier (The shift from illusion to skepticism in social media)
📖 Hype Machine – Sinan Aral (How trust is manipulated—and how consumers fight back)

📺 HBO’s Fake Famous – The illusion of influencer culture
📺 Netflix’s The Social Dilemma – How algorithms shape consumer trust
📺 Hulu’s Fyre – The collapse of hype-driven businesses

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