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The Craftory
The Craftory is a $380M permanent-capital investment firm backing mission-driven consumer brands, co-founded by Ernesto Schmitt and Elio Leoni Sceti in...
The Craftory
The Craftory was founded in London in 2017 by Ernesto Schmitt and Elio Leoni Sceti, two operators who had already built and scaled iconic consumer brands before structuring their firm. Schmitt co-founded Beamly and held senior roles at EMI; Leoni Sceti served as CEO of Iglo Group and later led the turnaround of ailing consumer assets. The firm emerged with a single thesis: that the causes consumers care about — diversity, sustainability, transparency — are structural competitive advantages, not marketing line-items. The Craftory invests exclusively in early-growth consumer businesses that embed social and environmental missions inside their products. The portfolio spans personal care, food and beverage, and household goods. Confirmed positions include vegan chocolate maker Hippeas, period-underwear brand Thinx, and plastic-free cleaning products company Truman's. The firm uses a permanent-capital structure, meaning it never needs to force a portfolio company toward a premature sale or IPO. Investment sizes typically range between $10M and $20M per deal, targeting minority stakes where the firm can influence brand strategy and impact positioning without controlling day-to-day operations. Geographically, the portfolio tilts toward North America and Western Europe. The permanent-capital vehicle closed at $380M, backed entirely by the two co-founders' own capital (per Financial Times, 2022). The firm maintains offices in London and New York. In September 2022, The Craftory led a $20M funding round for B-corp diaper brand Kudos, reinforcing its post-pandemic commitment to consumer health categories (per TechCrunch, 2022). The Craftory's structural edge is its escape from the fundraising cycle. Without LP timelines pressuring exits, the firm can hold assets for a decade or longer, compounding brand equity and impact in parallel. This architecture places it closer to a holding company than a traditional venture fund, yet its minority-position discipline keeps founders in charge — a governance tension the firm treats as a deliberate feature.
General information
Firm type
Private Equity
Year founded
2017
AUM
$380M (per Financial Times, 2022)
Location
Region
Europe
Country
United Kingdom
City
London
Corporate office
London, United Kingdom
Additional offices
New York, NY, United States
Principals
Ernesto Schmitt
Co-Founder & Managing Partner
Elio Leoni Sceti
Co-Founder & Managing Partner
Sector focus
Frequently asked questions
Who makes the investment decisions at The Craftory?
Co-founders Ernesto Schmitt and Elio Leoni Sceti lead the investment process at The Craftory. Both spent decades as operators and investors in the consumer sector before launching the firm in 2017. Schmitt previously co-founded social-TV platform Beamly, while Leoni Sceti turned around Iglo Group during his tenure as CEO. Day-to-day deal evaluation draws on their combined network of brand builders and impact strategists.
How is The Craftory's capital structure different from a traditional venture fund?
The Craftory operates as a permanent-capital vehicle, not a closed-end fund. The $380M pool came entirely from the two co-founders' personal capital (per Financial Times, 2022), meaning there are no external LPs, no fundraising cycles, and no fixed investment period. This allows the firm to hold portfolio companies indefinitely rather than forcing exits on a VC timetable.
Does The Craftory take controlling stakes in its portfolio companies?
No. The Craftory targets minority positions, typically writing checks between $10M and $20M per investment. The firm positions itself as an active strategic partner rather than a controlling owner, aiming to influence brand direction and mission integrity while leaving founders in operational control.
What investment stage does The Craftory focus on?
The Craftory invests in early-growth consumer brands that have validated product-market fit and are ready to scale. It does not participate in seed rounds or late-stage pre-IPO deals. The firm's permanent-capital structure means it can support portfolio companies through multiple growth phases without pressing for a near-term exit.
Which sectors does The Craftory avoid?
The firm does not invest outside the consumer goods sector. That means it avoids technology infrastructure, enterprise software, fintech, healthcare services, and other verticals common in venture portfolios. Within consumer, the firm's mission lens typically excludes categories it considers structurally misaligned with its impact thesis — including alcohol, fast fashion, and ultra-processed foods.
Does The Craftory invest alongside other institutional investors?
Yes. The Craftory co-invests alongside traditional venture firms, family offices, and strategic corporate investors in syndicated rounds. Its 2022 investment in Kudos, for example, joined a syndicate that included Prelude Growth Partners and other consumer-focused investors. The firm's permanent-capital posture makes it a flexible co-investor in follow-on rounds as well.
How does The Craftory evaluate the social or environmental mission of a potential investment?
The Craftory treats a brand's mission as a structural investment criterion, not a philanthropic overlay. The firm looks for consumer companies where the cause — whether plastic elimination, menstrual equity, or plant-based nutrition — is embedded in the product and supply chain. Co-founder Elio Leoni Sceti has publicly stated the firm targets brands where the mission creates a defensible consumer moat rather than a compliance obligation.
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