Brand authenticity is something successful entrepreneurs are able to create, and big corporations are increasingly being forced to buy from them, said the co-founders of CAVU Ventures Partners.
"You can't outsource authenticity. Entrepreneurs are really good at ... creating these brands that have heart and soul," CAVU's Clayton Christopher told CNBC's "Squawk Box" in an interview on Friday. "That's what big companies are starved for."
"It's much less risky for these big companies to buy small brands that have proven some level of success," he added.
Christopher, an entrepreneur turned venture capitalist, certainly speaks from experience.
He founded Sweet Leaf Tea in 1998 with $12,000 and a recipe from his grandmother. Nestle, after an initial investment of $15.6 million in 2009, bought Sweet Leaf outright two years later.
Deep Eddy Vodka, co-founded by Christopher in 2009, sold for nearly $400 million to Heaven Hill distilleries about six years later.
After raising $150 million, CAVU Ventures started at the beginning of this year, with a concentration on consumer food and beverage companies. Their investments include Bai drinks, Chef's Cut jerky, and Austin Eastciders.
CAVU stands for Ceiling And Visibility Unlimited, an aeronautical term meaning great flying weather.
"My lovely wife came up with that. She's pretty creative," Christopher said, adding it's an aspirational mantra for the company.