The Bespoke Economy: An Alumni Ventures Big Idea

Redefining Innovation with Human-Centric Ventures

Michael Collins is Founder, CEO, and Board Chair of Alumni Ventures, America’s largest venture capital firm for individual accredited investors. Mike founded AV in 2014 and served as Managing Partner of the firm’s first alumni fund, Green D Ventures (for the Dartmouth community). Green D is now one of 40+ AV foundational and focused funds. Under Mike’s leadership, AV has raised $1.3+ billion from 10,000+ investors and backed 1,400+ portfolio companies. Mike holds an undergraduate degree in Engineering Science from Dartmouth and an MBA from Harvard Business School.

Naren Ramaswamy is a Senior Principal at Alumni Ventures. Naren combines a technical engineering background with experience at startups and VC firms. Before joining AV, he worked with the investing team at venture firm Data Collective (DCVC) looking at frontier tech deals. Before that, he was a Program Manager at Apple and Tesla and has worked for multiple consumer startups. Naren received a BS and MS in mechanical engineering from Stanford University and an MBA from the Stanford Graduate School of Business.

Amid the surge of AI and automation, a shadow trend is quietly brewing — celebrating the human touch. History shows that every major tech trend has “shadow” trends quietly growing alongside it. (There are also backlashes — but that’s for another blog.) Today’s AI revolution is no different. As technology automates nearly every aspect of our lives, immense opportunities await ventures offering personalized, human-centric experiences.

The rise of AI and automation is transforming industries at a rapid pace, but a counter-trend is quietly emerging: The Bespoke Economy. This blog explores how successful ventures can combine technology with a human touch to thrive in this growing market, creating opportunities for both entrepreneurs and investors.

WEBINAR: Welcome to the Bespoke Economy

Thursday, December 5, 2:00 PM ET

Join us for an enlightening session with Alumni Ventures CEO Mike Collins and Senior Principal Naren Ramaswamy as we explore the emergence of The Bespoke Economy amidst the rise of AI and automation. Discover how history’s shadow trends, which emerge alongside major advancements, are shaping new opportunities for ventures that embrace personalized, human-centric experiences.

Register Here »

The Main Trend: AI and Robotics Eat Everything

Artificial intelligence and robotics are transforming life at an unprecedented pace. White-collar jobs once considered secure are being redefined as machines take over tasks like data analysis, customer service, and even creative roles. At Alumni Ventures, we’re investing in dozens of companies each quarter, showing our conviction in these disruptive entrepreneurs and their ventures.

The Shadow Trend: The Bespoke Economy

While efficiency and access improve, this relentless pursuit often overlooks human needs and desires. Automation trends like chatbots, self-service kiosks, and predictive algorithms make interactions cheaper and faster — but less personal. Over time, consumers will likely seek to balance these impersonal, automated interactions with a human touch, unique stories, and imperfections only real people can provide.

As technology progresses, at least a percentage of us will balance disconnected and screen-heavy time with a fuller, more “analog” life, augmented with AI insights. What’s inherently human — stronger social bonds, personal expressions of creativity, and greater individualization — will be prized.

For most, The Bespoke Economy isn’t about rejecting technology. Rather, it’s about thoughtfully integrating it to enhance human experiences. It emphasizes people, customization, storytelling, craftsmanship, and artistry — offering consumers goods, services, and experiences that feel personal and meaningful rather than generic and mass-produced.

This Is Nothing New: Three Examples From History

We’ve seen innovation trends create shadow trends before.

1. Industrial Revolution and Arts and Crafts Movement: In response to the proliferation of low-cost, mass-produced goods during the Industrial Revolution, the Arts and Crafts movement emerged to emphasize handcrafted, quality products.
2. Music Streaming vs. Vinyl Resurgence: The accessibility of music streaming platforms has brought convenience, but the latest resurgence of vinyl records underscores a growing desire for tactile, “authentic” listening experiences. People crave the imperfections — the pops and crackles — of records, as well as the sense of physical ownership.
3. Fast Food vs. Slow Food: The rapid growth of fast food was met with a counter-movement towards locally sourced, farm-to-table experiences, emphasizing freshness and craftsmanship.

Growth and Change Rates We Haven’t Seen Before

What is new is the accelerating rate of technological change. This type of exponential growth isn’t something human brains are wired to recognize.

At the same time, we also see the shadow trend — the Bespoke Economy — growing faster and more powerfully than before. Market gaps created by automation are ripe for human-centric solutions offering authenticity and personal engagement. The premium paid for Bespoke Economy goods and services will grow and create enormous value. We see many of the best businesses going forward as hybrids — combining powerful tech with a high-touch human layer.

5 INVESTABLE SECTORS IN THE BESPOKE ECONOMY

Food

High-Tech Trends

1. Automated kitchens: Robots prepare meals with precision.
2. AI-driven nutrition: Apps creating meal plans based on algorithmic assessments.
3. Robot-assisted farming: Robotics used in vertical farms to optimize harvests, ensuring fresh produce year-round.

Likely Trend & Shadow Trend Personas

1. Personalized meals: Alex, a software engineer, uses an AI-powered meal delivery service that ensures personalized, nutritious, and convenient meals daily.
2. Community supper clubs: Maria joins a supper club that sources local produce and fosters community, later scaling into a subscription-based membership.

AV Prediction

Consumers are seeking personalized, high-quality food experiences that connect food, community, and storytelling. Ventures combining automation with high-touch, story-driven experiences — like supper clubs and farm-to-table initiatives — will thrive.

Related Startups in AV’s Portfolio

Companies such as Odeko and BistroCat automate operational tasks to help humans spend more time in the real world rather than worrying about inventories for their cafes or maintaining pet food supplies. Meanwhile, companies like Prime Roots use technology to produce and deliver nutrition-rich superfoods, and GrubMarket offers farm-fresh, local food delivered to the consumer’s door at 50% less than grocery stores.

Clothing

High-Tech Trends

1. Fast fashion algorithms: AI predicting trends and mass-producing clothing.
2. Virtual fitting rooms: Augmented reality for trying on virtual clothes.
3. Style feedback: Platforms where users can receive style advice from AI tools.

Likely Trend & Shadow Trend Personas

1. Virtual wardrobe: Ben shops with a virtual fitting room app that delivers trendy, perfectly tailored clothing directly to his door.
2. Artisanal garments: Ella collaborates with artisans to create meaningful custom garments that reflect her unique style.

AV Prediction

As consumers continue to seek personalized apparel, we predict that platforms that merge the craftsmanship of bespoke fashion with technological scalability will become increasingly sought after. Again, this is a hybrid business that combines high-tech solutions with a high-touch human element.

Related Startups in AV’s Portfolio

Companies like Daydream and Unspun are transforming fashion by making it more personalized and sustainable. Daydream leverages natural language search to learn and adapt to user preferences, simplifying the way people discover fashion that matches their style. Unspun, on the other hand, uses 3D body scanning and weaving robots to produce made-to-order garments, enhancing personalization while reducing industry waste. For Days is a clothing brand that sells sustainable clothing and home goods, also offering to recycle used clothing.

Meanwhile, Bezel taps into the growing demand for luxury collectibles by connecting authenticated suppliers with consumers, making the world of luxury watches more accessible and trusted.

Democratizing Creativity

High-Tech Trends

1. Speech-enhancing AI: AI-based call center agents.
2. AI-generated music: Machines generating common tunes around us like hold music, jingles, and elevator music.
3. AI-powered design tools: AI algorithms generating images from content ingested through the web.

Likely Trend & Shadow Trend Personas

1. New musicians: Even without formal music training, Chris is able to produce polished tracks and novel musical concepts in hours, just using tools that help him enhance his creativity.
2. Personalized designs: Emma scales her small stationery business on her own, leveraging AI design tools to create unique products.

AV Prediction

Similar to how social media created a slew of new digital creators, AI will enable anyone to become a new musician, designer or artist. AI-powered platforms that allow non-experts to create art and communicate better will become increasingly popular.

Related Startups in AV’s Portfolio

Companies like Mayk.it, Coframe, and Cohart are democratizing creativity and technical capabilities. Mayk.it enables anyone to become a musician with simple creation tools and a social network to share their work. Coframe uses AI to automate website UI testing, allowing individuals to build user-friendly websites without specialized teams. Cohart is a social marketplace for artists and art collectors that helps artists find buyers for their work. On the other hand, Wispr is redefining human-machine communication by replacing keyboards with seamless voice interaction, making technology more intuitive and accessible, even for those with speech impediments.

Social Events

High-Tech Trends

1. AI event planning: Algorithms that organize events based on data analytics.
2. Live streaming socials: Platforms that enhance real-time social interactions by integrating live streaming with AI-driven engagement tools, such as automatic Q&A, real-time polls, and adaptive content adjustments based on audience feedback.
3. Virtual reality gatherings: Social events hosted in digital spaces.

Likely Trend & Shadow Trend Personas

1. Celebratory gatherings: Bella organizes intimate events leveraging local chefs and musicians to create meaningful celebrations.
2. Virtual reality fantasy football league: Sam and his friends interact as avatars in a VR fantasy football league, keeping them connected despite distances.

AV Prediction

As social gatherings and events become increasingly influenced by technology, we predict that hybrid event platforms that blend virtual and in-person experiences will see significant growth. Consumers will value the ability to participate from anywhere while still enjoying personalized, meaningful engagement.

Related Startups in AV’s Portfolio

Sleeper, Zigazoo, SoWork, and Kumospace are all focused on building connection and community in innovative ways. Sleeper lets friends come together over fantasy sports leagues, fostering camaraderie even at a distance. Zigazoo provides a safe, creativity-focused social network for kids to connect and play. SoWork has developed the world’s first massively multiplayer online workplace, applying gaming principles to create a virtual office for hybrid work. Kumospace reimagines remote work by offering virtual office environments that make team interactions feel more natural and engaging.

Living Spaces & Home Goods

High-Tech Trends

1. 3D-printed furniture: Companies mass-produce designs at the click of a button.
2. Smart home devices: Automated environments controlling lighting, temperature, and more.
3. AI-Enhanced Home Design: Platforms using AI to create customized home layouts and furnishings based on user preferences. These platforms provide an efficient way to personalize home interiors, blending high-tech precision with individual style.TBD

Likely Trend & Shadow Trend Personas

1. Smart Home: Nina’s fully automated home is efficient and makes it easy to customize for her tech preferences.
2. Handcrafted Home: Kara sources unique handcrafted items using a high tech marketplace, transforming her home into a space full of character.

AV Prediction

Technology tools will personalize homes & home goods, enhancing uniqueness and creativity. We predict that ventures that can scale the bespoke, human-centered approach while leveraging technology for efficiency will see increased demand and investment potential.

Related Startups in AV’s Portfolio

Quince, ZZDriggs, and Haddy are technology interfaces for quality, crafted, consumer-centric home goods. Quince leverages direct partnerships with factories to deliver luxury home products — like cashmere and silk — at affordable prices, democratizing access to high-quality materials. ZZDriggs offers a blend of vintage and contemporary furniture for rent or purchase, making it easy to curate a comfortable living space. Haddy is a micro-manufacturer of beautiful, environmentally conscious furniture produced through direct digital manufacturing using machine learning and 3D printing.

Other Sectors

The bespoke economy is also emerging across industries like wellness, education, and travel.

In wellness, tech-driven solutions such as AI fitness coaches, wearable devices, and in-person tech-enabled workout environments are on the rise, providing customized experiences. Portfolio companies such as Future, Oura, and Dance Church are innovating in these categories.

Similarly, the education sector is becoming more personalized with AI tutors and adaptive learning platform. Some AV portfolio companies in this space include PraxisLabs and PanoramaEd.

In travel, demand for personalized, high-touch experiences remains strong. Portfolio companies such as Lightship, CruiseBound, and Wander are enhancing travel through a mix of technology and human connection.

Across all these sectors, the key to success lies in balancing AI-driven efficiency with authentic, human-centered experiences, creating scalable opportunities while meeting the consumer demand for meaningful interactions.

INVESTMENT CONSIDERATIONS IN HUMAN-CENTRIC VENTURES

This is more than an academic exercise for us. As venture capitalists, we think valuable companies will be created around the Bespoke Economy.

It’s true that many businesses within the bespoke economy will be small, niche, and local. They are essential, and do not require nor benefit from venture capital involvement. However, our team gets up every day evaluating opportunities in this space that would lead to larger outcomes. We won’t go through our entire due diligence checklist, but below are three areas we focus on when evaluating opportunities in this space.

• Market potential refers to the total opportunity for a product or service, essentially answering: How big can this business get? In the bespoke economy, success lies in tapping into the growing desire for personalized, human-centric experiences. For bespoke ventures to attract venture capital, they must target a scalable market, much like Airbnb did by transforming personalized travel into a global marketplace. Identifying sectors that can scale personalization without losing authenticity is crucial for recognizing market potential.
• Scalability is key in the bespoke economy, where personalized services are often labor-intensive and challenging to expand. Successful companies find ways to maintain high unit economics while they scale. Leveraging AI and automation enables scalability without losing the bespoke nature of the offering. For example, Stitch Fix uses data-driven algorithms to provide personalized styling while retaining a human touch.
• Business Moats help a company protect itself from competitors and maintain an edge in the market. In the bespoke economy, moats are often built by combining technology with unique, human-centric experiences.

Examples of Business Moats

• Brand and Trust: Companies like Warby Parker create moats through brand loyalty and exceptional customer experience. By offering personalized products, they build deep customer trust that competitors find hard to disrupt.
• Network Effects: Platforms like Etsy leverage network effects. As more sellers and buyers join, the platform becomes more valuable, making it tough for new entrants to compete with its scale and variety.
• Technology and Data: Spotify uses AI and data to create a personalized experience that improves over time. This creates a moat, as years of user data and fine-tuned recommendations are hard for competitors to replicate.

FINAL THOUGHTS

History teaches us that every dominant trend brings about a shadow trend. The unintended consequences of widespread automation will drive a new Bespoke Economy. By embracing this, we can help build businesses that grow the richness of human experience.

Our calls to action:

• For Entrepreneurs: Innovate with a focus on human experience. Identify areas where personal touch adds significant value and distinguishes your offerings in a crowded market.
• For Investors: Be open to supporting ventures in the Bespoke Economy. By investing in businesses that prioritize personalization and human connection, you tap into a growing market and diversify your portfolio.
• For All of Us: While the value and focus will be on the shocking change due to AI, robotics, and other tech innovations, we want to support the value of human connection. Let’s invest in a tech-centric future that also allows us to live a richer, more connected human experience. After all, in a world racing toward efficiency, the real luxury is the personal, the crafted, the bespoke.

WEBINAR: Welcome to the Bespoke Economy

Thursday, December 5, 2:00 PM ET

Join us for an enlightening session with Alumni Ventures CEO Mike Collins and Senior Principal Naren Ramaswamy as we explore the emergence of The Bespoke Economy amidst the rise of AI and automation. Discover how history’s shadow trends, which emerge alongside major advancements, are shaping new opportunities for ventures that embrace personalized, human-centric experiences.

Register Here »

Alumni Ventures offers accredited individuals access to professional-grade venture capital, a key asset class missing from the portfolios of many sophisticated investors. Since 2014, AV has raised $1.3+ billion from 10,000+ investors and backed 1,400+ unique portfolio companies. AV is a top 20 venture firm in North America according to CB Insights, as well as the #1 most active venture firm in the U.S., and #3 most active in the world, according to PitchBook’s 2022 and 2023 rankings. AV has won awards from Inc. Magazine, Fast Company, Benzinga, and the US FinTech Awards.

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