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Jessica Alba

Why Silicon Valley venture capital firms are funding online retailers like Dollar Shave Club

Why Silicon Valley venture capital firms are funding online retailers like Dollar Shave Club

Stance, a maker of luxury socks, has raised $86 million. Dollar Shave Club, a grooming company that supplies subscribers with razors and moistened bathroom wipes, has amassed more than $160 million. And the Honest Co., actress Jessica Alba's home-care brand known for its plant-based diapers, has scored $222 million.

The three businesses make consumer goods, yet they're all backed by heaps of venture capital — the type of funding that fuels the tech world.

So why are the biggest investors in technology backing firms whose tech prowess amounts to little more than a nifty website and a social media team?

It's a question that lingers in...

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