For Capital Funds & Portfolio Operators
Paid Media Due Diligence & Scale Control for DTC Portfolios
Profit-first Google Ads built around contribution margin, not blended ROAS.
The problem funds keep inheriting
Most DTC brands look scalable in platform metrics. Many are not once unit economics, fulfilment, returns, and cash timing are applied.
During diligence and post-investment, paid media is often:
- Reported in blended ROAS
- Optimised at account level, not SKU level
- Detached from contribution and working capital reality
Capital then gets deployed into demand that appears efficient and quietly destroys margin.
JudeLuxe exists to prevent that.
What capital funds actually need from paid media
Funds are not buying clicks or traffic. They are underwriting repeatable, scalable contribution.
That requires clarity on:
- Which SKUs can scale profitably and which cannot
- How much incremental spend the business can absorb before contribution compresses
- Whether Google Ads is a growth engine or a cash leak with good charts
We answer those questions directly.
Our economic lens: CM3, not ROAS
We assess Google Ads through Contribution Margin 3 (CM3). In practical terms:
Revenue
− COGS
− variable fulfilment and transaction costs
− variable paid media spend
= CM3
CM3 shows whether incremental ad spend creates real economic value before fixed overheads.
ROAS does not.
A brand can improve ROAS while:
- Burning cash
- Scaling unprofitable SKUs
- Increasing dependency on paid demand
CM3 exposes that early, while decisions are still reversible.
Common portfolio failure points
We see the same structural issues repeatedly across DTC portfolios:
Performance Max masking SKU-level losses
Blended ROAS hiding returns, shipping inflation, and discounting
Agencies bidding to spend targets rather than contribution limits
Growth plans built on optimistic cash float assumptions
Accounts structured without COGS or fulfilment data
These are not execution mistakes.
They are economic blind spots.
What JudeLuxe actually does
JudeLuxe operates as profit infrastructure for Google Ads, not a growth agency.
We align:
- SKU-level economics
- Account and campaign structure
- Feed logic and product segmentation
- Bidding constraints and scale decisions
around contribution, not vanity efficiency.
The output is control. Predictability. Fewer surprises.
How funds typically engage us
Pre-investment
Post-investment (first 90 days)
Ongoing (as needed)
No generic retainers. No long-term lock-in assumptions.
Why this matters to funds
In short: fewer unpleasant surprises after the money is already committed.
Who this is for
- •VC, growth equity, and capital funds backing DTC brands
- •Portfolios with material Google Ads dependency
- •Situations where scale, not experimentation, is the priority
If paid media materially affects the investment outcome, it should be governed accordingly.
Discuss a portfolio situation
No pitch deck. No sales theatre. A direct conversation about the economics.
Questions from VC and PE operating teams