Food Tech Trends & Market Research

2018 U.S. Food & Beverage Startup Investment Report

Ryan Williams — Thu, 06 Jun 2019 11:36:55 +0000

We are thrilled to partner with Ryan Williams to publish our 2018 U.S. Food & Beverage Startup Investment Report. A reformed banker, Ryan now leads finance and special projects for RISE Brewing Co., an award winning nitro cold brew coffee brand. On the side, he likes techno, backpacking, helping other food entrepreneurs, and long walks through the grocery store.

$1.45+ Billion Invested Across 247 Food & Beverage Deals

With acquisitions on the rise and more capital flowing into the industry, 2018 was another great year for U.S. based food and beverage startups. The year saw $1.45 billion invested across 200 disclosed deals, according to our research. In total, there were 247 reported financings in 2018. The largest check size of the year was for $114 million to Impossible Foods, with a median check size of $2.4 million (down from $3.9 million in 2017) and average check size of $7.3 million (up from $8.9 million in 2017). Despite a slight decline from 65 deals in 2017, M&A remained strong with 59 branded food and beverage deals closed in 2018, according to data compiled by Houlihan Lokey.

Our Investment Report examines U.S. based food and beverage investor trends, investment trends by category, and overall industry trends from 2018. Additionally, the report concludes with a detailed overview of notable exists and investments.

Please note, we used new data sources for 2017 and 2018 figures. Please do not refer to 2017 figures in our prior report for comparison purposes, as updated data alters prior year results. Improvements to our tracking and methodology allowed us to better track deal activity in 2018 than the year prior, allowing us to catch some of the smaller deals that are less widely publicized. We also began tracking three new categories, including CBD & THC, meal kits, and supplements.

The database underlying this report relies on a variety of public sources of information such as industry publications, SEC filings, Crunchbase, newsletters, and social media to track investments made by by angel investors, incubators, venture capital firms, and private equity firms. While a best effort is made, no guarantee is given regarding its comprehensiveness or accuracy. The database covers the U.S. branded food and beverage category, which includes in-market products sold to consumers through e-commerce or traditional retail channels.

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Report Content

Click on the links below to easily navigate this report.

1. Investor Trends
2. Food & Beverage Investment Category Data & Trends
3. Notable 2018 CPG Trends
4. Notable Exits
5. Complete List of 2018 Food & Beverage Investments

Investor Trends

On the investing side, 2018 was more focused on maturation than innovation. Last year saw the full scale arrival of traditional tech investors, the advent of data-driven funds such as CircleUp, and the emergence of mega rounds backing category leaders. These strategies continued through 2018, albeit directed at the ever widening scope of exciting categories and trends, from plant-based to CBD.

As more investors have flocked to food, capital providers have sought to differentiate their dollars. CircleUp, for example, notes on its website: “We now provide not only access to capital, but also introductions to retailers and strategics, as well as actionable insights, powered by our machine learning platform, Helio.” Similarly, influencer-centric Wild Ventures specializes in online distribution and sales. It has assembled an investor syndicate of wellness influencers that can help drive direct sales. Bringing something unique to the table is becoming increasingly important and VCs are seeking to establish their value-add.

Some investors are generalists, investing in a wide variety of brands. One of the most active firms this year, AccelFoods, participated in 17 deals ranging from bone broth (Bonafide Provisions) to cold brew coffee (Wandering Bear). Cambridge SPG was also lively, closing seven deals in brands such as Vive Organic, Tosi Health, and Once Upon a Farm. More frequent participation helps firms learn faster, diversify their risk, and double down on category winners.

While other investors target specific sectors, particularly when it comes to plant-based. New Crop Capital, Powerplant Ventures, and Stray Dog Capital have all built impressive portfolios by focusing exclusively on the industry’s continued embrace of alternatives to meat, seafood, and dairy. Other niche focused investors include The DTX Company, Elizabeth Street Ventures, and Outbound Ventures, which have concentrated on e-commerce standouts such as Dirty Lemon, RISE Brewing Co., Ark Foods, and spero.

Just as interesting as who came to the table in 2018 is who didn’t. Whereas tech focused VC firms made many showings in 2017, very few of the big names closed new deals in 2018. Neither Accel, Andreessen Horowitz, Box Group, First Round Capital, Greycroft nor GV did a food related deal. Only Horizons Ventures, which placed tech angled bets on Endless West, Impossible Foods, and Perfect Day; Kleiner Perkins, with its check to Beyond Meat; and Khosla Ventures, with its participation in Perfect Day and Ripple, represented the tech set. The intersection of new technology paired to food brands most excites this group.

Also worth noting is the distribution of deal activity more generally. Of the 412 investors tracked in 2018, 160 wrote no checks at all. While some of that group may have quietly shuttered or some deals went unnoticed, the 202 active firms were still predominantly one check ponies. Of the 430 tracked checks written in 2018, nearly half (45 percent) came from just 30 firms. Another notable development is that A-tier firms appear to be increasing the size of their investment, while decreasing their investment frequency. VMG, for example, made just four disclosed investments in 2018, but the rounds in which they participated averaged $37 million, including Ancient Nutrition ($108,000,000), SmashMallow ($10,000,000), Spindrift ($20,000,000), Humm Kombucha ($10,000,000).

In 2018, an expanded array of corporate VCs began to invest off their balance sheets, following the precedent set by name brand corporate venture incubators and funds such as Coke’s Venture Emerging Brands (“VEB”). Ingredient supplier Döhler Ventures, for example, has taken positions in Bizzy, Vive Organic, Vrai and Your Super. WeWork’s Food Labs, which wasn’t officially announced until March 2019, had nonetheless begun meeting with brands and touting its global reach before the new year.

As usual, however, and the above notwithstanding, the only thing more exciting than the trends within the investment community were the trends among the brands themselves.

Food & Beverage Investment Category Data

The following is a breakdown of investments by category, including alcohol, alternative dairy, alternative protein, bars, beverages beyond water, CBD & THC, chips & salty snacks, coffee, tea & kombucha, keto, protein beverage, sweets, soups & broths, supplements, and other.

Please note, for the graphs and data presented below, every company is only classified in one category. Editorial judgement is used when determining how to group these brands.

Top 20 Food & Beverage VC Investments by Brand

Like 2017, there were two brands in the $100 million club. Following Brewdog ($190 million) and JUST ($150 million) in 2017, this year’s nine-figure club included Impossible Foods and Ancient Nutrition. Six of the top 20 brands (Beyond Meat, Bulletproof, High Brew, Impossible Foods, Perfect Day, and Spindrift) appeared years, raising a combined $461 million.

2018 Food & Beverage Funding by Category

Besides “Other” being the largest category and encapsulating companies ranging from Once Upon a Farm to RollinGreens, the most noteworthy outcome was alternatives to dairy and animal-based protein were both the first and second tracked categories, representing one-third of the overall pie. No wonder plant-centric investment firms have had no trouble expanding their portfolios.

2018 VC Investments By Quarter

As compared to 2017, the quarter over quarter deal activity volumes were more stable. The two biggest quarters of the year, Q1 and Q3 also included to the two biggest deals of the year – $108 million to Ancient Nutrition in March and $114 million to Impossible Foods in October, respectively.

2018 Funding For Coffee, Tea & Kombucha

High Brew has been highly funded, occupying the top spot in 2018 after raising $17 million just a year earlier. Humm has also been humming along, following its 2017 raise of $10 million with another $10 million in 2018. These two leaders have been backed by what many would call the biggest respective brands on the venture side of the table – CAVU Ventures and VMG.

Note: undisclosed fundings in 2018 included Brew Dr. Kombucha, VitaCup, Wicked Lekker, Sweet A Little, Metabrew, and Vera Roasting Company.

2018 Funding for Beverages Beyond Water

Investor willingness to back cold-chain beverage has grown. In fact, about half of category dollars went towards cold-chain brands, led by Harmless Harvest and Dirty Lemon. What remains to be seen, however, is large CPG willingness to acquire and support such companies. For example, Coke’s relationship with Suja has proven challenging and even at $100 million in sales, Coke backed kombucha breakout Health-Ade remains unprofitable. The costs and supply chain complexities of cold-chain distribution need to be addressed before these brands can successfully integrate with publicly traded CPG portfolios.

Note: undisclosed fundings in 2018 included GIVN Water, Poppilu, and Vitox Drinking Vinegar.

2018 Funding for Alcohol

Wine, beer, whiskey, and canned cocktails – alcohol investments of 2018 run the gamut of the booze spectrum. Alcohol is often considered a staid category, but in recent years, more attempts are being made to introduce truly differentiated products. Endless West, for example, employs a proprietary process to accelerate the aging of its spirits. Willie’s Superbrew offers unique flavor combinations and advocates for nutrition label transparency beyond the lax requirements afforded to alcohol producers. And finally, KeVita founder Bill Moses’s newest venture, Flying Embers, embraces the natural alcohol of kombucha for a refreshing, bubbly yet boozy, creation.

Note: undisclosed fundings in 2018 included Bodega Luigi Bosca, Laws Whiskey House, Flying Embers, Vivify Beverages, Swish Beverages and Brooklyn Gin.

2018 Funding for Soups & Broths

Sometimes, it’s what seems less exciting that has the most potential. Case in point – B.O.U, a modern, better-for-you bouillon maker that, while competing in a lower velocity, smaller, and admittedly unbuzzworthy category, also faces significantly less competition and impediments to gaining shelf space.

Note: undisclosed fundings in 2018 included Splendid Spoon.

Funding for Keto

For diet-trend led brands, their identify is dual-defined. Is Bulletproof a keto brand that makes coffee or a coffee brand that makes keto? Nonetheless, keto deserves a mention in 2018 as it has become just as popular as gluten-free was not so long ago. Many companies, including Cave Shake, Bear Squeeze, and Quevos, wisely embrace keto while remaining cautious in fully ensconcing their identities in the trend.

Note: undisclosed fundings in 2018 included Cave Shake and Disruptive Enterprises.

2018 Funding for CBD & THC Food & Beverage Brands

Funding for CBD and THC has started to light up. Once a taboo and restricted by tight regulations, increased acceptance at the state and, perhaps soon, federal levels has opened a path for national, big-time brands. Coke CEO James Quincy continues to be skeptical, recently commenting, “The way I think about ingredients is the following: Is it legal? Is it safe? And is it consumable?…It’s not legal in the U.S…Is it safe? Science is out…We want to sell drinks that people can drink each day.” On the opposite end of the spectrum, Constellation Brands placed a $4 billion bet on Canopy Growth in October 2018, describing its view as, “extremely bullish, if not more bullish” on an earnings call. Risk-tolerant investors agree, with RTDs such as Recess and California Dreamin’ receiving millions in investment despite nascent sales data. Even if their investments go south, at least those VCs will be able to relax.

2018 Funding for Chips & Salty Snacks

Every notable crunchy or salty snack investment of the past year went towards a non-potato based brand. Leading the group was CAVU Ventures backed Hippeas, which has raised $22 million to date on its reported path to both profitability and $100 million in sales. Following a stint of Powerplant Ventures and Zico founder Mark Rompolla briefly assuming the CEO role, Beanfields has also matured nicely.

Note: undisclosed fundings in 2018 included Quevos.

2018 Funding For Supplements

Supplements and direct-to-consumer make a great match. Low weights, high margins and the ability to target specific demographics helps explain why e-commerce has been a focus of most venture backed brands in the category. The $108 million round for Ancient Nutrition generated quite a stir. In addition to VMG and ICONIQ Capital, Ancient Nutrition attracted a veritable “who’s who” roster of angel investors. Supplements are also one of the few categorizes in which “personalization” is actually happening. Joining the likes of Care/of and Ritual, Persona, which makes customized vitamin regimens, closed a $4.5 million round from Emil Capital Partners, L Catterton, and Mindset Venture Group.

Note: undisclosed fundings in 2018 included Uplift Food, Hangnever, Cure Hydration, and Enduraphin.

2018 Funding for Protein Beverages

It feels like not too long ago, the only protein beverage option was Muscle Milk. Over the past few years, a number of better-for-you protein brands have emerged, with unique twists to differentiate themselves from a broadening set. From REBBL’s use of adaptogens to Ample Foods’s “just add water” format, the protein enhanced beverage category reflects the rapid innovation that is occurring throughout the industry as a whole.

2018 Funding for Bars

Investors continue to support innovation in the bar category in terms of deal frequency, with 11 brands attracting institutional dollars in 2018. The average check size, however, was just $1.9 million, significantly less than the $7.3 million average across the industry. Especially with the exits of companies like RXBAR to Kellogg and Health Warrior to Pepsi, startups are going to face an increasingly difficult time getting on shelf, getting off shelf, and ultimately, getting acquired.

Note: undisclosed fundings in 2018 included Cherryvale Farms and Milkful.

2018 Funding for Desserts & Sweets

The best and brightest sweets companies prove it’s possible to survive the sugar inquisition. Whether through innovation like SmashMallow’s snackable marshmallows or moderation, as demonstrated by Chloe’s all-natural fruit pops, creating something unique, tasty, and responsibly indulgent continues to open investor wallets and consumer mouths.

Note: undisclosed fundings in 2018 included Buff Bake, Fancy Sprinkles, Good Day Chocolate, JJ’s Sweets, Little Secrets, and Van Leeuwen.

2018 Funding for Meal Kits

Amidst the struggles of category creator Blue Apron, many would expect investors to have written off the meal-kit category. Even though category funding is down significantly, focused offerings targeting specific dietary needs or recipe formats have received continued support, with Sun Basket’s organic options leading the charge.

Note: undisclosed fundings in 2018 included Ono Food Co.

2018 Funding for Plant-Based Dairy

Dairy alternatives was the top category of the year, raking in over $200 million in total investment, with three companies (Ripple Foods, Califia Farms, and Kite Hill) raising $40 million or more. In addition to the direct leaders, products from brands in other categories have also embraced the trend, with offerings ranging from oat milk cold brew coffee to almond milk based ice cream.

2018 Funding for Plant-Based & Cultured Protein

Second only to alternative dairy was alternative meat and seafood, which collected a combined $192 million.

Note: undisclosed fundings in 2018 included Alpha Foods.

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Notable 2018 CPG Trends

CPG Retail Innovation

Following the playbook of brands like Warby Parker and Away, digitally native food and beverage brands began looking for ways to connect with their customers in person. Recognizing the value of in-person experiences to increase retention and lifetime value of their existing customers, while also presenting an increasingly cost effective customer acquisition channel amidst the rising prices of online ads, some of the most innovative brands launched Instagramable brick-and-mortar stores to engage with their customers offline.

Dirty Lemon, for example, launched The Drug Store, an instagram-perfect concept store in Tribeca, this past September to much fanfare. The goal of the store was to use a unique retail experience as a way to stand out in a sea of competitors with equally compelling digital marketing. Dirty Lemon is reallocating nearly all of its $4 million annual digital advertising budget to opening more Drug Stores, CEO Zak Normandin told The New York Times. More than a mere new channel for sales, the store forces customers to check out using its text-based payment flow. This brings in both sales and facilitates a digital connection. The buyer can then be marketed to via text, email and other means.

Hint, one of the leaders in D2C beverage, opened a 1,500-square foot experiential water bar in San Francisco’s Cow Hollow district where customers can sample and purchase its products. The purpose of the store is to turn Hint into an omni-channel lifestyle brand, CEO Kara Goldin told BevNET. Not to be outdone, Daily Harvest, a healthy meal delivery startup, launched a four day pop-up in New York City, which it has taken on the road to more cities in 2019. Rachel Dori, the company’s CEO, described her desire to, “to learn from and interact with consumers offline,” as its primary objective.

Far from the neon lights, crowded aisles, and disenchanted staff of traditional brick-and-mortar, these brands and more are successfully rethinking retail. By applying the same attention to detail and relentless customer focus reflected in their online experiences to their first forays in the physical world, an increasing number of food and beverage startups are successfully reimagining retail for the coming decades.

Meal Kits Fade

Meal kits illustrate how yesterday’s trend can quickly become today’s has-been. Once lauded as a disruptive alternative to traditional grocery purchase and prep, they have fallen out of vogue. Category creator Blue Apron’s stock price has hovered beneath $1.00 – down nearly 90 percent since its June 2017 IPO debut. Chef’d, which had raised $35 million from Campbell’s and Smithfield Foods, abruptly shuttered in July 2018. Munchery, Maple, Just Add Cooking and others have also seen their demise.

And yet, there remains hope. HelloFresh recently overtook Blue Apron as the top meal kit company in America, with revenues surpassing $1.3 billion. Sun Basket, an organic focused provider, had enough traction to close a $57.8 million round to begin the year. In their favor, meal kits offer convenience, entertainment, and personalization. Navigating fierce competition, challenging logistics and unit economics, and the retention of fickle customers over long periods will be key qualities for the winners of this space.

Sugar Reduction and Alternatives On The Rise

First they came for fat, then they came for gluten, and for the past few years, they’ve come relentlessly for sugar. While fat and gluten seem to have survived – in fact, (good) fat has recently become in vogue for followers of the keto diet – the assault on sugar sees no sign of abating. According to data published by the USDA, per capita sugar consumption has been down for four consecutive years and is now at a 30 year low.

This trend has given life to new startups, including Spindrift, Koia, Quest Nutrition and Halo Top. It has also spurred growth at legacy companies like La Croix and even forced innovation at the largest CPGs such as Pepsi, which launched its own sparkling water brand, bubly, in February 2018. The avoidance of sugar – and increasingly consumer distaste for sugar alternatives such as stevia and monk fruit – has and will continue to foster innovation in nearly all categories of food and beverage.

Big Meat Invests in Cultured Meat

In the face of shifting consumer preferences, industry incumbents have been surprisingly supportive of startups developing cultured meat and seafood products. Tyson Ventures backed Memphis Meats and Future Meat Technologies. JUST (formerly Hampton Creek), which has raised about $220 million, began exploring cultured meats, with controversial CEO Josh Tetrick targeting a launch of lab-grown chicken by the end of 2018. Although that deadline has passed, the company nonetheless has expanded its offerings from mayo to cookies, egg-whites and other animal free products. While this report only covers the U.S. landscape, it is notable that Israel-based SuperMeat closed a $3 million seed round in early 2018 with participation from PHW, one of Europe’s largest poultry producers, while leading Swiss meat manufacturer Bell Food Group participated in Mosa Meat’s $8.8 million round.

In addition to the scientific and manufacturing challenges of making lab-grown meat taste just like the real thing, however, startups will all face regulatory issues and a cultural hurdle in convincing people to switch away from traditional meat.

Plant-Based Growth

Plant based has hit prime time. The plant-based foods industry saw a 20 percent growth in dollar sales since 2017, according to the Plant Based Foods Association (“PBFA”). In the U.S. alone, sales of plant-based meats grew over 23 percent, exceeding $760 million in 2018. Nielsen, a leading retail data company, reported plant-based food sales topped $3.3 billion over the past year.” The global plant-based protein market is projected to reach $5 billion by 2020.

The economic, environmental and health benefits associated with a plant-centric diet has enabled startups to gain traction in everything from plant-based yogurt (eg. Kite Hill) to seafood (Ocean Hugger Foods) to dairy (Perfect Day) to mention plant-based meat. Beyond Meat and Impossible Foods are the vying contenders in what has the makings of a new duopoly and continue to trade punches. Beyond Meat has already secured partnerships with chains such as Carl’s Jr. and TGI Fridays while Impossible Foods has responded by inking deals with White Castle, and recently, Burger King. This trend truly deserves its own report and the recently published research brief from CB Insights, “Our Meatless Future: How The $90B Global Meat Market Gets Disrupted” is a great primer for anyone wishing to dig deeper on this important trend.

CBD & Cannabis

The CBD space has been anything but chill. California Dreamin’, Plus Products, Recess, Sunsoil and Weller, in addition to others under the radar, all received institutional backing in 2018. From the hemp supply side (Plus Products, Sunsoil) to RTD (California Dreamin’, Recess), the industry has begun to evolve, despite the legal grey area in which the industry operates. That said, anyone reading and looking for inspiration would be well advised to examine this list as there still remain product categories ripe for development. Cannabis pizza? THC Twinkies? Why not kill two birds with one stone?

As reported by Time, “CBD that is extracted from hemp (which must have an extremely low level of THC) has only been legal nationwide since the Agriculture Improvement Act — better known as the Farm Act — was passed in December 2018. CBD that is extracted from other cannabis plants is still illegal on the federal level, but may be legal under state law.”

Given that the product doesn’t get users “high” and the progressiveness individual states including California, Colorado and Oregon have shown towards more potent cannabis, the full scale legalization of CBD appears within sight. Both Walgreens and CVS have begun selling CBD in their stores, paving the path for other retailers and other major players such as banks to accept producers without opposition.

Keto

It wasn’t too long ago that fat was the target and not the trend. In the late 1980s, former U.S. surgeon general C. Everett Koop went so far as to place fat on par with smoking, noting: “The depth of the science base underlying its findings is even more impressive than that for tobacco and health in 1964.” New research and understandings about the role fat plays in health has caused many to question the fat-wa, instead embracing it as part of a healthy, low carb diet.

No shortage of brands have been ready to seize on this explosive growth. But is fat – and by extension, keto – a fad? There’s keto cookies from Fat Snax, keto chocolate from ChocZero and keto cheese crisps from Whisps. On top of all of that, there’s the elephant in the room, Bulletproof, which has become a broader platform ranging from butter coffee to supplements. Diet preferences, however, come and go, which makes them risky investments. As Sophie Bakalar puts it, “invest in food trends, not diet fads.” Whether a new diet will earn a place on the chart below or keto will continue to grow, we’ll just have to wait for the 2020 report to see and know.

Digitally Native

More and more brands are choosing D2C models because it allows them to circumvent the costly and limiting realities of traditional retail, while also forging direct relationships with their customers. Even when they do enter the physical realm, it’s often been with their own stores, as Dirty Lemon, Daily Harvest and others have shown. Now, conglomerates are also putting dollars into comprehensive online strategies.

The party won’t last forever. CPC rates are increasing, low barriers to entry encourage even more competition and the biggest player, Amazon – which took over 50 percent of online sales in 2018 – now controls Whole Foods, the retail partner with the greatest cachet. Aside from the short list of true breakout brands built online, most will be forced to create and execute an omnichannel strategy. It may be in with the new, but it’s not going to be out with the old anytime soon.

Still, Brick Meets Click forecasts that online grocery sales will increase 10 times more than in-store sales over the next five years, as well as comprise 8 percent of total grocery sales by 2022.

Looking Forward

Food startups are trendy. It only takes a stroll down the aisles of Natural Products Expo West or a chat with recent college grads to realize this. Brands take center stage on Shark Tank and garner the attention of celebrity investors ranging from Kobe (Bodyarmor) to Drake (MatchaBar). There are nearly 400 active CPG focused venture capital and private equity firms, operating everywhere from West Palm Beach to Westport.

The existing food system remains ripe for revolution and the economic opportunity of modernizing everything from sugary soda to fatty frozen feasts persists. Of the $130.9 billion total venture capital invested in 2018, less than 1 percent went to food and beverage despite the industry accounting for approximately 1.4 percent of GDP and comprising about 2.6 percent of S&P 500 market capitalization (data as of April 2019).

And yet, there are whispers of a potential slowdown. The market can only support so many better for you XYZs and direct to consumer CPGs. The headwinds to early stage food and beverage investing are multifold.

For startups, the barriers to entry have never been lower. Shopify, Amazon, and smaller-scale co-packers have allowed new companies to launch with limited capital investment. Relatedly, brands can attract niche followings through targeted online advertising and by gaining initial retail consumers by emphasizing their “local“ provenance.

The smattering of brands that differentiate based on geography, branding, and niche taste and diet preferences simultaneously erodres the market share of incumbents while hindering any single startup’s ability to become a high-priced acquisition target. As one example that may play repeat, the long tail of lingering, independent craft breweries cannot yield VC type returns. Sure, a few will reach escape velocity – Lagunitas in beer or Sir Kensington’s in condiments or Tate’s in cookies – but it’s increasingly difficult to separate from the pack. The “size of the prize” changes very quickly once shared.

For investors, deals have never been more competitive. Valuations average between 3x and 6x sales, although the hottest brands command 10x. LP dollars are also waiting to be deployed in old guard and newly launched funds alike. Returns will be squeezed by the competitive forces impacting both term sheets and retail shelves.

Acquirers also appear less willing to make mega acquisitions, instead trending towards earlier stage investments and buyouts. “The large Consumer Packaged Goods (CPG) companies, which are consistently losing market share to their early stage competitors, continue to actively acquire rapidly growing early stage food and beverage companies that can serve as new avenues of growth,” notes Nebari Ventures Managing Partner Alex Malamatinas. Nearly every publicly traded CPG has an incubator or venture capital group. These VC divisions provide early support and a clearer path to exit but often with a call option caveat that allows them to acquire allied brands at a discount to their fair-market value. From an investment perspective, it may be that consistent singles and doubles outperform a spate of strikeouts offset by a periodic grand slam.

The big CPGs also find value beyond the bottom line of their targets. Some recent acquisitions seem to be driven more for their educational potential than their immediate earnings impact. For example, Unilever bought Dollar Shave Club for $1 billion when its sales were under $200 million and Walmart acquired Jet.com for $3.3 billion and over 6x its trailing 12 month sales. E-commerce, cultured protein, and better-for-you brands generally remain knowledge gaps for most of the large CPGs.

The above notwithstanding, the notable startup acquisitions of 2018 – Core Nutrition, Tate’s Cookies, Bare Snacks, and Primal Kitchen – went for about $1.4 billion combined. Set against the $1.2 billion in disclosed early-stage investment, the troubling economics become clear. The allure of exits such as Bai ($1.7 billion) may endure, but they are unicorn deals. Although CPG VCs are not as home run dependent as their tech counterparts – meaning they don’t rely on a single exit or two to return their funds – the recent paucity of even nine-figure exists and absence of 10 figure deals should be worrying.

The high price tags commanded by the brightest startups encourages conglomerates to develop brands internally. For example, in January 2018, Unilever was close to buying better-for-you ice cream maker Halo Top for roughly $2 billion. It balked and ultimately launched a competing brand, Culture Republick. While the misspelled name is as want-to-be-hip cringeworthy as Pepsi’s bubly, it also prevents Halo Top’s backers from realizing a return. La Colombe similarly floated a $1 billion dollar price tag, which seems to have fallen on deaf ears. On top of this, many retailers have launched successful private label offerings.

The margin impact of innovation also poses challenges. Apart from platforms like Bulletproof that can leverage their brand awareness to expand into higher margin categories such as supplements, many startups seemingly lack a pathway to sustainable gross margins which buyers can transform into positive EBITDA. There is an old refrain that “40 is 20” meaning 40 percent gross margins in startup phase enable 20 percent EBITDA margins at scale; there is a reality that many startups, fueled by VC dollars, are operating well below that threshold.

Startups and investors can respond to emerging challenges in a few ways.

Startups would be wise to focus on true differentiation, especially by developing seemingly onerous core competencies. Notable examples include Daily Harvest’s frozen shipping logistics and Dirty Lemon’s text-based ordering. Bang Energy, which has built an in-your-face, far-from-Whole Foods brand also deserves credit for its contrarian path. The ability to become a platform, as Primal Kitchen did for condiments or Core Nutrition has accomplished in beverage, should also remain front of mind. Care/of, Bulletproof and Hippeas deserve praise for creating “lifestyle brands” as opposed to defining themselves by the products themselves.

Contrarily, an abstention from the high-flying, growth-at-all costs mentality can setup longer-term potential. There are profitable, digitally native, under-the-radar brands hawking everything from matcha to keto cookies to overnight oats pulling in nearly seven figures a month. Cash flow allows them to chart their own destiny unencumbered by the pressure of investor expectations.

Investors ought to prize differentiation, platform potential and scientific innovation. The first can be as simple as owning a unique twist on a category, such as nitro as opposed to regular cold brew. The second, as mentioned above, appears when the brand’s values positively outshine its products’ ingredients. The third is most prominent in the growing cellular based meats and seafood category. Between Beyond Meat’s upcoming IPO and the buzz around Impossible Foods, the intersection of biotech and food appears to have the greatest upside potential.

If there is a downturn, conglomerates stand to benefit. They know they need to modernize their brand portfolios and may be able to acquire solid concepts at low prices. This period may also give rise to the birth of Hain Celestial 2.0 holding companies, which understand both the operations component and how to market to millennial consumers. Dunn River Brands, Sonoma Brands, New Age Beverage and others are leading the charge here. There have even been rumors VMG is in the process of raising a distressed fund to acquire flailing brands on the cheap.

Of course, none of this should overshadow all the reasons food and beverage startups have taken off. As Jordan Gaspar, Managing Partner of New York City based venture fund AccelFoods recently noted, “It’s an exciting and unprecedented time to be investing in the food and beverage space. There is a convergence of highly skilled entrepreneurs entering the space, retailer willingness to make shelf space, and innovative products coming to market that is fueling the disruption we see today. This disruption is compounded by strong consumer demand and interest in smaller challenger brands that meet the better-for-you eating and drinking habits that consumers are adopting.”

Indeed, the United States packaged food and beverage industry alone was most recently estimated at $806.3 billion. Considering that nearly every area remains ripe for innovation, roughly $1 billion in annual investment begins to feel more reasonable. Investors will, however, need to see how the cookies crumble before knowing if they’re buying lemons or the cream of the crop.

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Notable Exits

Patron

Products: Tequila
Acquirer: Bacardi
Date: January 22, 2018
Price: $5,100,000,000
Why it matters: The acquisition of Patron solidifies Bacardi’s position as a preeminent player across the entire spirits category. In addition to Patron, Bacardi owns Grey Goose vodka, Bombay Sapphire gin and Dewar’s scotch, among others. As overall domestic alcoholic consumption slows, one possibility is consumers will shift their preferences to more premium options – a possibility Bacardi is now even better primed to capitalize on.

Dr Pepper Snapple

Products: Tea and other beverages
Acquirer: Keurig Green Mountain
Date: January 29, 2018
Price: $25,251,480,000
Why it matters: Because JAB Holdings, the holding company behind Keurig controlled by the reclusive Reimann family, has established itself as a true threat to the duopoly of Coke and Pepsi. In particular, the acquisition of DPSG expands the coffee concentrated empire of JAB (Keurig, Peet’s, Caribou,Stumptown, Panera and more) to adjacent markets in tea, soda and bottled water.

TCHO

Products: Chocolate
Acquirer: Ezaki Glico
Date: February 20, 2018
Price: Undisclosed
Why it matters: Founded in 2005, TCHO was one of the pioneers of the bean-to-bar movement and preceded the broader trend which continues today of consumers prizing traceability and ethical wages for all participants in the supply chain. It’s Japan based acquirer, Ezaki Glico, is best known as the maker of Pocky, which makes us wonder if we’ll even see a TCHO + Pocky collab. We can only hope!

Tate’s

Products: Cookies
Acquirer: Mondelez
Date: May 6, 2018
Price: $500,000,000
Why it matters: For all the advice and lessons given by successful entrepreneurs, most great brands chart their own, unreplicable path and the same applies to Tate’s. Founded as a single retail store in South Hampton, New York, Tate’s channeled its unique brand and uniquely crispy cookies into a higher margin yet nationally scalable brand. As one friend commented, “there was something very special about Tate’s. Even though it’s a premium brand with a premium price, the brand seems to hold its own whether in a Whole Foods or a gas station.” Evidently, Mondelez agreed and acquired the brand for nearly half-a-billion dollars.

Bare Snacks

Products: Baked fruit and vegetable snacks
Acquirer: PepsiCo
Date: May 25, 2018
Price: ~$200,000,000
Why it matters: Pepsi has made good on its promise to focus on better for you snacking options and this acquisition is no exception. The first of departing CEO Indra Nooyi’s three pillars was, “helping to improve health and wellbeing.” This mission has been quite successful, as Pepsi now derives nearly 50 percent of its sales from “Guilt Free Products.” For such a large company with historical concentrations in sugary sodas and high-fat salty snacks like Cheetos, Pepsi deserves credit for adapting to consumer preferences faster than the vast majority of its publicly traded peers.

RUNA

Products: Guayusa tea
Acquirer: Vita Coco
Date: June 20, 2018
Price: Undisclosed
Why it matters: Runa has a storied history. Early to recognize the growing demand for better-for-you energy drinks, the company struck a chord with forward thinking east coasters looking for something healthier than high sugar, chemical laden alternatives. On the other hand, it struggled to hit the escape velocity needed for a mega acquisition. Nonetheless, Runa has found a great home at Vita Coco.

SodaStream

Products: Home carbonation device and syrups
Acquirer: PepsiCo
Date: August 20, 2018
Price: $3,221,700,000
Why it matters: As with most success stories, SodaStream began by addressing pain points that later became major consumer values. First, its environmentally friendly solution eliminates the need for single use plastic bottles or cans. And second, its expansive array of concentrates and syrups are able to be dosed to each person’s preference. Finally, the deal is a reminder of the challenges faced by the industry’s largest players to find non-cannibalizing growth. One way to protect the health of their existing brands (Pepsi has 22 with $1 billion + in annual sales) is to explore other categories, use occasions, channels of distribution, or in this case, form factors.

Core Nutrition

Products: Water and flavored water
Acquirer: Keurig Dr Pepper
Date: September 27, 2018
Price: $525,000,000
Why it matters: With its overlapping product line, it’ll be interesting to see how Core overlaps with KDP’s major acquisition of 2017, Bai. Also worth noting, Core’s estimated 12 month trailing sales were approximately $200 million when the deal was announced, implying a 2.6x revenue multiple. Bai, on the other hand, went for $1.7 billion while doing approximately $230 million in net sales, implying a revenue multiple of about 7.3x – nearly three times that of Core. Bai’s underperformance relative to post-acquisition expectations may have hammered the willingness for acquirers award outsize multiples for some time.

Primal Kitchen

Products: Sauces, condiments and dressings.
Acquirer: Kraft
Date: November 29, 2018
Price: $200,000,000
Why it matters: A rebuttal to Unilever’s 2017 acquisition of Sir Kensington’s, Primal Kitchen will help Kraft modernize its condiments business. Whereas Sir Kensington’s differentiated with its whimsical brand, innovative ingredients like aquafaba and clean ingredient lists, Primal Kitchen has been especially adept at identifying and appealing to diet trends ranging from Whole30 to Paleo.

Revive Kombucha

Products: Kombucha
Acquirer: Peet’s (Subsidiary of KDP)
Date: December 20, 2018
Price: Undisclosed
Why it matters: Despite the category as a whole being on fire (estimated to reach $5.45 billion by 2025), there have yet to be any headline acquisitions. Category originator GT Dave’s has evolved in a thriving but privately owned business and leading startup Health-Ade, while still private, has received investment from Coca Cola but likewise remains independently operated. That said, the Peet’s acquisition of Revive may be a clever way for JAB Holdings (which owns both Keurig Dr. Pepper and Peet’s, among others) to dip its toes into kombucha before other conglomerates have a chance to make their bets.

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2018 Food & Beverage Investments

Please note the following list of investments covers only U.S based food and beverage companies that received investment in 2018.

To submit an investor to our database click here.

To submit an investment to our database click here.

8 Myles

Founder: Myles Powell
Product(s): Mac n’ cheese.
2018 Funding Date: March 1, 2018
2018 Funding: $20,000
Total Funding: $20,000
Disclosed Investors: Union Kitchen

Alpha Foods

Founders: Cole Orobetz, Loren Wallis
Product(s): Plant based burritos
2018 Funding Date: March 12, 2018
2018 Funding: Unknown
Total Funding: $4,750,000
Disclosed Investors: GlassWall Syndicate, New Crop Capital, VegInvest, Arbel Growth Partners, Clear Current Capital, AccelFoods

American Ostrich Company

Founder: Alexander McCoy
Product(s): Ostrich
2018 Funding Date: February 21, 2018
2018 Funding: Unknown
Total Funding: $2,050,000
Disclosed Investors: Unknown

Ample Foods

Founder: Connor Young
Product(s): Bottled natural meal replacements
2018 Funding Date: May 8, 2018
2018 Funding: $2,000,000
Total Funding: $4,000,000
Disclosed Investors: Slow Ventures, LivWell Ventures

Ancient Nutrition

Founders: Jordan Rubin, Dr. Josh Axe
Product(s): Bone broth, collagen, and supplements
2018 Funding Date: March 8, 2018
2018 Funding: $108,000,000
Total Funding: $108,000,000
Disclosed Investors: VMG Partners, ICONIQ Capital, FounderMade Fund
Comments: Over 100 investors poured over $100 million into Ancient Nutrition in March. Only two years old and playing in the still nascent categorizes of bone broth and collagen supplements, the company’s experienced leadership team is now well positioned to capitalize on a fast growing sector.

Apres

Founders: Darby Jackson, Sonny McCracken
Product(s): Plant protein beverages
2018 Funding Date: April 25, 2018
2018 Funding: $1,100,000
Total Funding: $1,100,000
Disclosed Investors: Cambridge SPG, Rocana Venture Partners

Arctic Distillery

Founder: Jon Maxwell
Product(s): Craft spirits
2018 Funding Date: March 9, 2018
2018 Funding: $337,000
Total Funding: $337,000
Disclosed Investors: Unknown

Athletic Brewing

Founder: Bill Shufelt
Product(s): Non-alcoholic craft beer
2018 Funding Date: September 21, 2018
2018 Funding: $500,000
Total Funding: $750,000
Disclosed Investors: Unknown

Atlanta Bourbon Company

Founder: Caroline Porsiel
Product(s): Craft spirits.
2018 Funding Date: July 1, 2018
2018 Funding: $488,500
Total Funding: $738,500
Disclosed Investors: Unknown

Austin Cocktails

Founders: Kelly Gasink, Jill Burns
Product(s): Alcoholic cider
2018 Funding Date: October 9, 2018
2018 Funding: $4,387,626
Total Funding: $4,387,626
Disclosed Investors: Constellation Ventures

Austin Eastciders

Founder: Ed Gibson
Product(s): Alcoholic cider
2018 Funding Date: June 27, 2018
2018 Funding: $4,499,993
Total Funding: $19,246,098
Disclosed Investors: CAVU Ventures, Fort Ventures, Mark VC

Ayoba-Yo

Founder: Wian van Blommestein
Product(s): South African jerky
2018 Funding Date: May 14, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Springboard

B4

Founder: John Mansour
Product(s): Vitamin infused beverage.
2018 Funding Date: March 28, 2018
2018 Funding: $400,000
Total Funding: $1,162,500
Disclosed Investors: Unknown

Back to the Roots

Founders: Alejandro Velez, Nikhil Arora
Product(s): Sustainable grow-at-home mushroom kits
2018 Funding Date: May 17, 2018
2018 Funding: $2,600,000
Total Funding: $17,600,000
Disclosed Investors: M13 Company, S2G Ventures, SWTLF Ventures, Echo Capital Group, Blue Scorpion Investments

Beanfields

Founder: Liza Braude-Glidden
Product(s): Bean based chips and salty snacks
2018 Funding Date: June 29, 2018
2018 Funding: $2,500,000
Total Funding: $7,000,000
Disclosed Investors: Ridgeline Ventures, Powerplant Ventures, New Richmond Ventures (NRV)

Bear Squeeze

Founder: Max Baumann
Product(s): Keto meal shake
2018 Funding Date: February 23, 2018
2018 Funding: $879,000
Total Funding: $879,000
Disclosed Investors: AccelFoods, Indigogo

Belsazar

Founder: Maximillian Wagner
Product(s): Vermouth
2018 Funding Date: March 15, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Distill Ventures

Better Bites Bakery

Founder: Leah Lopez
Product(s): Allergan free baked goods and sweets
2018 Funding Date: August 23, 2018
2018 Funding: $900,000
Total Funding: $1,250,000
Disclosed Investors: Unknown

Beyond Meat

Founder: Ethan Brown
Product(s): Plant based meat
2018 Funding Date: October 5, 2018
2018 Funding: $50,000,000
Total Funding: $122,000,000
Disclosed Investors: 301 Inc., DNS Capital, GlassWall Syndicate, Kleiner Perkins Caufield & Byers, New Crop Capital, Obvious Ventures, S2G Ventures, Stray Dog Capital, Tyson New Ventures, Cleveland Avenue, Collaborative Fund, Ambrosia Investments, Blue Horizon
Comments: Beyond Meat is a fascinating player among the truly believable meat replacement startups. Unlike Impossible Foods, whose go to market strategy has been to partner with premium branded on-premise chains where they guide distribution and preparation standards, Beyond Meat has been faster to mass market and is already in 30,000 stores and had a phenomenal IPO in 2019. It’ll be interesting to see if they can lock in brand loyalty from most customers before Impossible Foods, Memphis Meats and others can achieve similar scale.

Bhakti Chai

Founder: Brook Eddy
Product(s): Chai beverages
2018 Funding Date: August 15, 2018
2018 Funding: $2,184,028
Total Funding: $11,312,965
Disclosed Investors: CircleUp, Colorado Impact Fund, Red Idea Partners, The R Group, Cleveland Avenue, TAP Ventures

Biena

Founder: Poorvi Patodia
Product(s): Chickpea snacks
2018 Funding Date: April 19, 2018
2018 Funding: $2,350,000
Total Funding: $4,450,000
Disclosed Investors: Blueberry Ventures, Centerman Capital, New Ground Ventures, Tastemaker Capital

Birch Benders

Founders: Matt LaCasse, Lizzi Ackerman
Product(s): Pancake and waffle mixes
2018 Funding Date: June 7, 2018
2018 Funding: $5,050,000
Total Funding: $5,050,000
Disclosed Investors: Boulder Food Group (BFG)

Blue Crate

Founder: Kristy Halderman
Product(s): Oat milk
2018 Funding Date: March 1, 2018
2018 Funding: $20,000
Total Funding: $20,000
Disclosed Investors: Union Kitchen

BlueNalu

Founder: Lou Cooperhouse
Product(s): Cell-cultured seafood
2018 Funding Date: August 15, 2018
2018 Funding: $4,500,000
Total Funding: $4,500,000
Disclosed Investors: Clear Current Capital, New Crop Capital

Blume Honey Water

Founders: Carla Frank, Michele Meloy Burchfield
Product(s): Honey water
2018 Funding Date: August 30, 2018
2018 Funding: $425,000
Total Funding: $600,000
Disclosed Investors: Unknown

Bobo’s Oat Bars

Founder: Beryl Stafford
Product(s): Bars
2018 Funding Date: September 6, 2018
2018 Funding: $8,000,000
Total Funding: $16,000,000
Disclosed Investors: Ridgeline Ventures, Boulder Investment Group Reprise (BIGR Ventures)

Bodega Luigi Bosca

Founder: Leoncio Arizu
Product(s): Wine
2018 Funding Date: December 18, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: L Catterton

Bonafide Provisions

Founder: Sharon Brown
Product(s): Bone broth
2018 Funding Date: July 27, 2018
2018 Funding: $2,250,000
Total Funding: $6,750,000
Disclosed Investors: AccelFoods, Boulder Investment Group Reprise (BIGR Ventures), Ridgeline Ventures, Blueberry Ventures

BOU

Founder: Robert Jakobi
Product(s): Bouillon cubes and soup cups
2018 Funding Date: November 14, 2018
2018 Funding: $4,000,000
Total Funding: $7,800,000
Disclosed Investors: AccelFoods, Nebari Ventures, Torch Capital, FounderMade Fund, 25Madison
Comments: Just when it seems every category has been disrupted, it turns out there are still battles just beginning. Case in point: bouillon cubes, which most consumers consider a mainstay of their grandma’s soup recipe. Nonetheless, the elevated branding and better-for-you ingredient profile of BOU should help them battle incumbents like Knorr.

Braven Brewing

Founders: Marshall Thompson, Eric Feldman
Product(s): Craft beer.
2018 Funding Date: July 11, 2018
2018 Funding: $124,900
Total Funding: $1,009,900
Disclosed Investors: Unknown

Brew Dr. Kombucha

Founder: Matt Thomas
Product(s): Kombucha
2018 Funding Date: February 6, 2018
2018 Funding: Unknown
Total Funding: $1,000,000
Disclosed Investors: Castanea Partners

Brooklyn Gin

Founders: Emil Jättne, Joe Santos
Product(s): Gin
2018 Funding Date: January 1, 2018
2018 Funding: Unknown
Total Funding: $1,550,000
Disclosed Investors: QC Ventures

Buff Bake

Founders: Ashley Boeckle, Brittany Boeckle
Product(s): High protein cookies and spreads
2018 Funding Date: February 28, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: AccelFoods

Bulletproof

Founder: Dave Asprey
Product(s): Keto coffee and supplements
2018 Funding Date: August 1, 2018
2018 Funding: $40,000,000
Total Funding: $68,000,000
Disclosed Investors: CAVU Ventures, Trinity Ventures, _able
Comments: Stemming from Dave Asprey’s audaciously titled 2014 book, “The Bulletproof Diet: Lose up to a Pound a Day, Reclaim Energy and Focus, Upgrade Your Life,” the brand offers, “high performance food, drinks & supplements to power your life.” It remains to be seen whether its current fanatical following will translate into long-term success, with one potential pitfall being that “Diets Do Not Make Good Investments.” Bulletproof’s core coffee line will also be competing with the other darling child of cold brew, nitro, which offers a latte like experience without calories, fat or other additives. Which do you prefer?

Caledonia Spirits

Founder: Todd Hardie
Product(s): Craft spirits
2018 Funding Date: February 21, 2018
2018 Funding: $1,250,000
Total Funding: $1,250,000
Disclosed Investors: FreshTracks Capital

Califia Farms

Founder: Greg Steltenpohl
Product(s): Plant based milks, juice and coffee
2018 Funding Date: July 2, 2018
2018 Funding: $50,000,000
Total Funding: $100,000,000
Disclosed Investors: Stripes Group, Ambrosia Investments

California Dreamin’

Founder: Amy Ludlum
Product(s): Cannabis infused soda
2018 Funding Date: July 30, 2018
2018 Funding: $2,300,000
Total Funding: $2,300,000
Disclosed Investors: Babel Ventures

Cardinal Spirits

Founder: Adam Quirk
Product(s): Craft spirits.
2018 Funding Date: September 28, 2018
2018 Funding: $126,000
Total Funding: $126,000
Disclosed Investors: Unknown

Caulipower

Founder: Gail Becker
Product(s): vegetable-based pizzas and pizza crusts
2018 Funding Date: December 20, 2018
2018 Funding: $8,200,000
Total Funding: $10,200,000
Disclosed Investors: Boulder Food Group (BFG)

Cave Shake

Founders: Holly Heath, Billie Cavallaro
Product(s): Keto, vegan, ready-to-drink shake
2018 Funding Date: August 31, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: L.A. Libations

Cece’s Veggie Noodle Co.

Founder: Mason Arnold
Product(s): Veggie noodles
2018 Funding Date: December 10, 2018
2018 Funding: Unknown
Total Funding: $14,000,000
Disclosed Investors: Encore Consumer Capital

Cheating Gourmet

Founders: Jon Demers, Scott Demers
Product(s): Premium seafood appetizers
2018 Funding Date: April 11, 2018
2018 Funding: $1,300,000
Total Funding: $2,100,000
Disclosed Investors: Arbel Growth Partners

Chef’s Cut

Founders: Blair Swiler, Dennis Riedel
Product(s): Jerky
2018 Funding Date: March 31, 2018
2018 Funding: $8,000,000
Total Funding: $14,000,000
Disclosed Investors: CAVU Ventures, Clearlake Capital, Halen Brands, Rocana Venture Partners, Fort Ventures, Grays Peak Capital

Cherryvale Farms

Founder: Lindsey Rosenberg
Product(s): Baked muffin bars
2018 Funding Date: June 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

Chirps Chips

Founders: Laura D’Asaro, Meryl Natow, Rose Wang
Product(s): Cricket flour tortilla chips
2018 Funding Date: June 13, 2018
2018 Funding: $25,000
Total Funding: $75,000
Disclosed Investors: Unknown

Chloe’s Fruit

Founder: Michael Sloan
Product(s): Fruit pops
2018 Funding Date: August 4, 2018
2018 Funding: $9,000,000
Total Funding: $13,000,000
Disclosed Investors: Chobani Food Incubator

Clio

Founder: Sergey Konchakovskiy
Product(s): Chocolate covered Greek yogurt‎
2018 Funding Date: June 1, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: Alliance Consumer Growth

COCO5

Founder: Scott Sandler
Product(s): Coconut water
2018 Funding Date: March 12, 2018
2018 Funding: $1,500,000
Total Funding: $1,500,000
Disclosed Investors: Spiral Sun Ventures

Coolhaus

Founders: Natasha Case, Freya Estrelle
Product(s): Ice cream sandwiches
2018 Funding Date: August 29, 2018
2018 Funding: $7,000,000
Total Funding: $13,000,000
Disclosed Investors: Sunrise Strategic Partners

Copper Cow

Founder: Debbie Mullin
Product(s): Portable pour over Vietnamese coffee‎
2018 Funding Date: December 4, 2018
2018 Funding: $3,000,000
Total Funding: $3,000,000
Disclosed Investors: Victress Capital

Country Archer Jerky Co.

Founder: Eugene Kang
Product(s): Jerky
2018 Funding Date: September 19, 2018
2018 Funding: $10,000,000
Total Funding: $21,000,000
Disclosed Investors: Monogram Capital Partners

Crunchsters

Founder: Frank Lambert
Product(s): Mung bean snacks
2018 Funding Date: June 19, 2018
2018 Funding: $2,581,829
Total Funding: $2,581,829
Disclosed Investors: AccelFoods, VG Growth Partners

Cure Hydration

Founders: Alex Sarkissian, Lauren Picasso
Product(s): Hydration powders
2018 Funding Date: August 31, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

Dahlicious

Founder: JD Sethi
Product(s): Indian style yogurt and lassi
2018 Funding Date: March 8, 2018
2018 Funding: $4,000,000
Total Funding: $4,000,000
Disclosed Investors: Fresh Source Capital, Keen Growth Capital

Dirty Lemon

Founder: Zak Normandin
Product(s): Beverages and elixirs
2018 Funding Date: December 20, 2018
2018 Funding: $15,000,000
Total Funding: $19,500,000
Disclosed Investors: Burch Creative Capital, MLC Brands, The Coca-Cola Company: Venture Emerging Brands (VEB), Nebari Ventures, The DTX Company, Mark VC
Comments: New York City-based Dirty Lemon has been creatively contrarian across multiple fronts. From it’s unique flavors ranging from matcha to charcoal to (briefly) CBD, to its proprietary text-message based ordering system, to its new SoHo based retail outlet, it’s no wonder Coke decided to invest. Dirty Lemon offers a window into the future of products, distribution and retail.

Disruptive Enterprises

Founder: Mike Hockenberry
Product(s): Food, beverages, and dietary supplements
2018 Funding Date: March 20, 2018
2018 Funding: Unknown
Total Funding: $7,800,000
Disclosed Investors: One Better Ventures

Dixie Brands

Founders: Chuck Smith, Tripp Keber
Product(s): Cannabis products.
2018 Funding Date: October 1, 2018
2018 Funding: $29,000,000
Total Funding: $37,000,000
Disclosed Investors: Irving Investors

Don’t Go Nuts

Founders: Grey Pinto, Lily Pinto, Jane Pinto, Doug Pinto
Product(s): Nut free snacks for kids
2018 Funding Date: April 10, 2018
2018 Funding: $8,440,772
Total Funding: $8,440,772
Disclosed Investors: Unknown

Eat Me

Founders: Amber Odhner, Catelyn Augustine
Product(s): Plant-based ice cream
2018 Funding Date: November 1, 2018
2018 Funding: $50,000
Total Funding: $60,000
Disclosed Investors: Unknown

Edenworks

Founder: Jason Green
Product(s): Fish in aquaponic ecosystems
2018 Funding Date: May 31, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: Myca Partners

Ellenos

Founders: Bob Klein, Yvonne Klein, Con Apostolopoulos, Alex Apostolopoulos
Product(s): Greek yogurt
2018 Funding Date: April 17, 2018
2018 Funding: $18,000,000
Total Funding: $18,000,000
Disclosed Investors: Monogram Capital Partners

Endless West

Founder: Alec Lee
Product(s): Molecular spirits
2018 Funding Date: May 31, 2018
2018 Funding: $7,020,000
Total Funding: $9,720,000
Disclosed Investors: Collaborative Fund, Indie.Bio, Horizons Ventures
Comments: More than meat-makers can play with molecules. Enter Endless West, which has developed a process to shorten the aging process for spirits from years to days. While it has yet to release a commercial product, the fact that it counts Horizon Investors (also an investor in Impossible Foods) among its biggest backers suggests a bright future for the brand and the category as a whole.

Enduraphin

Founder: Daniel Drake
Product(s): Supplements
2018 Funding Date: June 7, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

Fancy Sprinkles

Founder: Lisa Stelly
Product(s): Sprinkles
2018 Funding Date: September 26, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Sterling Partners

Farmer’s Fridge

Founder: Luke Saunders
Product(s): Vending machine meals
2018 Funding Date: September 5, 2018
2018 Funding: $30,000,000
Total Funding: $10,600,000
Disclosed Investors: Danone Manifesto Ventures, Cleveland Avenue, Maywic Select, Spiral Sun Ventures, Powerplant Ventures, DNS Capital, DomCapital Group

Farmwise Foods

Founders: Dave Peters, Cristina Peters
Product(s): Frozen veggie snacks
2018 Funding Date: April 10, 2018
2018 Funding: $4,500,000
Total Funding: $6,043,097
Disclosed Investors: Cleveland Avenue, Centerman Capital

FAWEN

Founders: Amanda Bowen, Fabio Fossati
Product(s): Ready to drink soup
2018 Funding Date: March 1, 2018
2018 Funding: $1,500,000
Total Funding: $1,500,000
Disclosed Investors: Unknown

Feast & Fettle

Founders: Carlos Ventura, Maggie Mulvena, Nicole Oliveira
Product(s): Premium meal delivery service
2018 Funding Date: October 1, 2018
2018 Funding: $221,000
Total Funding: $249,000
Disclosed Investors: Unknown

Feel Good Foods

Founders: Tryg Siverson, Vanessa Phillips
Product(s): Asian inspired appetizers and meals
2018 Funding Date: June 28, 2018
2018 Funding: Unknown
Total Funding: $355,000
Disclosed Investors: Crimson Seed Capital, City Capital Ventures

Finless Foods

Founder: Mike Selden
Product(s): Fish meat from stem cells
2018 Funding Date: June 20, 2018
2018 Funding: $3,500,000
Total Funding: $3,500,000
Disclosed Investors: Draper Associates, Babel Ventures, Blue Horizon

FitJoy

Founder: Manish Patel
Product(s): Bars.
2018 Funding Date: January 26, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: LivWell Ventures

Flying Embers

Founder: Bill Moses
Product(s): Hard kombucha
2018 Funding Date: November 15, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Ecosystem Integrity Fund
Comments: Anyone that’s ever spiked their kombucha can see the potential for Bill Moses’s latest venture. The founder of Kevita (acquired by Pepsi) is bringing innovation to the alcohol space, which so often feels years behind the broader natural products industry.

Fora

Founders: Aidan Altman, Andrew McClure
Product(s): Aquafaba based butter
2018 Funding Date: July 26, 2018
2018 Funding: $1,400,000
Total Funding: $1,400,000
Disclosed Investors: New Crop Capital, Baleine & Bjorn Capital, EverHope Capital, Blue Horizon, Myca Partners, Katjesgreenfood

Fort Point

Founder: Justin Catalana
Product(s): Beer
2018 Funding Date: July 16, 2018
2018 Funding: $7,743,616
Total Funding: $11,262,616
Disclosed Investors: CircleUp,Saltwater Capital

Four Sigmatic

Founders: Tero Isokauppila, Mikko Revonniemi
Product(s): Mushroom coffee
2018 Funding Date: December 11, 2018
2018 Funding: $5,377,053
Total Funding: $5,577,053
Disclosed Investors: AccelFoods, _able, Eighteen94 Capital

Freeland Spirits

Founder: Jill Kuehler
Product(s): Craft spirits.
2018 Funding Date: June 15, 2018
2018 Funding: $540,000
Total Funding: $540,000
Disclosed Investors: Unknown

Fresh Bellies

Founders: Saskia Sorrosa, Nick Kennedy, Virgi Schiffino
Product(s): Vegetable based baby food
2018 Funding Date: March 9, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator

GIVN Water

Founders: John Houseal, Liz Skalla
Product(s): Water
2018 Funding Date: October 19, 2018
2018 Funding: Unknown
Total Funding: $700,000
Disclosed Investors: Wolfpack Brands

Good Catch

Founders: Chad Sarno, Eric Schnell, Marci Zaroff
Product(s): Plant based seafood
2018 Funding Date: August 7, 2018
2018 Funding: $8,700,000
Total Funding: $8,700,000
Disclosed Investors: Baleine & Bjorn Capital, New Crop Capital, Stray Dog Capital, M13 Company, MetaBrand Capital, Rocana Venture Partners, EverHope Capital, Clear Current Capital, Blue Horizon
Comments: While cell based animal products began with meat, companies like Good Catch are also targeting seafood. In light continued worrying reports surrounding over fishing, Good Catch is helping chart a sustainable, delicious future.

Good Day Chocolate

Founders: Andrew Goldman, Simeon Margolis
Product(s): Caffeinated chocolate
2018 Funding Date: March 1, 2018
2018 Funding: Unknown
Total Funding: $3,120,000
Disclosed Investors: AccelFoods, Boulder Food Group (BFG), Echo Capital Group

GoodBelly

Founders: Steve Demos, Todd Beckman
Product(s): Probiotic juice
2018 Funding Date: June 20, 2018
2018 Funding: $12,000,000
Total Funding: $39,200,000
Disclosed Investors: Emil Capital Partners, Maveron, 301 Inc.

Green Blender

Founders: Amir Cohen, Jenna Tanenbaum
Product(s): Smoothie subscription service
2018 Funding Date: January 11, 2018
2018 Funding: Unknown
Total Funding: $1,900,000
Disclosed Investors: Food-X

Grillo’s Pickles

Founder: Travis Grillo
Product(s): Pickles
2018 Funding Date: March 6, 2018
2018 Funding: $3,600,000
Total Funding: $3,600,000
Disclosed Investors: Centerman Capital, Breakaway Ventures

Hail Merry

Founder: Susan O’Brien
Product(s): Better for you sweet snacks
2018 Funding Date: May 15, 2018
2018 Funding: $787,200
Total Funding: $6,800,000
Disclosed Investors: Evale Holdings, Powerplant Ventures, Blue Horizon, CircleUp

Hangnever

Founder: Mario Mare
Product(s): Carbonated anti-hangover drink
2018 Funding Date: February 20, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Black Dog Venture Partners

Happy Day Brands

Founders: Mark Priddy, Jeanette Priddy
Product(s): Organic coffee, chocolate, superfoods.
2018 Funding Date: November 6, 2018
2018 Funding: $750,000
Total Funding: $750,000
Disclosed Investors: Unknown

Harmless Harvest

Founders: Justin Guilbert, Douglas Riboud
Product(s): Coconut water
2018 Funding Date: February 1, 2018
2018 Funding: $30,000,000
Total Funding: $30,000,000
Disclosed Investors: Danone Manifesto Ventures, AccelFoods

Haven’s Kitchen Sauce

Founder: Alison Kayne
Product(s): Sauces and condiments
2018 Funding Date: September 18, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator

HERE

Founders: Megan Klein, Nate Laurell
Product(s): Juices
2018 Funding Date: April 13, 2018
2018 Funding: $4,000,000
Total Funding: $4,000,000
Disclosed Investors: Listen Ventures, Pallasite Ventures

Heritage Distilling

Founder: Justin Stiefel
Product(s): Craft spirits.
2018 Funding Date: April 17, 2018
2018 Funding: $387,200
Total Funding: $387,200
Disclosed Investors: Unknown

High Brew

Founder: David Smith
Product(s): Coffee
2018 Funding Date: May 18, 2018
2018 Funding: $20,000,000
Total Funding: $48,400,000
Disclosed Investors: Boulder Investment Group Reprise (BIGR Ventures), CAVU Ventures, Tasty Ventures, Charles Street Partners
Comments: High Brew has seen some high growth as the cold brew category continues to explode. They’ve also dipped their toes into the protein and coffee subset, which brands such as Kitu Life are focusing on full time. It’ll be fascinating to see which areas under the cold brew umbrella, from butter to protein to alternative dairy, perform best.

Hippeas

Founder: Livio Bisterzo
Product(s): Chickpea puffs
2018 Funding Date: December 21, 2018
2018 Funding: $12,000,000
Total Funding: $22,000,000
Disclosed Investors: CAVU Ventures, Green Park Brands, Strand Equity Partners
Comments: Hippeas has a visionary founder who has created one of the most successful launches in industry history. From starting in mid-2016, Hippeas has closed two rounds from top tier firms and with participation from the likes of Leo DiCaprio, presciently built its snacks using the deservedly on-trend chickpea and was generating monthly revenue of nearly $1,000,000 barely a year post launch. Part of their success has been understanding The ROI of Surprise and Delight.

Hu Products

Founders: Jason Karp, Jordan Brown, Jessica Karp
Product(s): Chocolate, nuts and coffee
2018 Funding Date: May 15, 2018
2018 Funding: $10,000,000
Total Funding: $10,000,000
Disclosed Investors: Sonoma Brands, Vanterra Accelerator Fund

Humm Kombucha

Founder: Jamie Danek
Product(s): Kombucha
2018 Funding Date: March 15, 2018
2018 Funding: $10,000,000
Total Funding: $27,600,000
Disclosed Investors: VMG Partners

Hungryroot

Founders: Franklin Becker, Gregory Struck, Benjamin McKean
Product(s): Plant based delivered meals
2018 Funding Date: March 22, 2018
2018 Funding: $22,000,000
Total Funding: $35,900,000
Disclosed Investors: Brooklyn Bridge Ventures, Great Oaks Venture Capital, jab Brands, KarpReilly, Lerer Hippeau Ventures, Lightspeed Venture Partners

Icelandic Provisions

Founders: Polaris Founders Capital, Mjólkursamsalan
Product(s): Icelandic yogurt
2018 Funding Date: May 16, 2018
2018 Funding: $5,000,000
Total Funding: $29,100,000
Disclosed Investors: Unknown

ICONIC

Founder: Billy Bosch
Product(s): Protein drinks
2018 Funding Date: September 10, 2018
2018 Funding: $4,000,000
Total Funding: $13,000,000
Disclosed Investors: AccelFoods, KarpReilly

Impossible Foods

Founder: Patrick Brown
Product(s): Plant based meat
2018 Funding Date: April 4, 2018
2018 Funding: $114,000,000
Total Funding: $427,000,000
Disclosed Investors: Collaborative Fund, Horizons Ventures, Khosla Ventures, Blue Horizon
Comments: As an avowed carnivore, my first bite of the Impossible Burger was the most memorable food experience of my life. Beyond multi-star Michelin hauts or the fantastic pizza of Brooklyn, the likeliness of Bareburger’s rendition to the real deal cannot be overstated. Goldman Sachs recently declared “meatless meats” as one of “8 Huge Trends That Are About to Change the World” and companies like Impossible are turning the future into reality.

IQ Bar

Founder: Will Nitze
Product(s): Bars
2018 Funding Date: June 8, 2018
2018 Funding: $400,000
Total Funding: $400,000
Disclosed Investors: Unknown

Ithaca Cold Crafted

Founder: Chris Kirby
Product(s): Hummus
2018 Funding Date: September 18, 2018
2018 Funding: $25,000
Total Funding: $2,725,000
Disclosed Investors: Chobani Food Incubator

JJ’s Sweets

Founder: JJ Rademaekers
Product(s): Coconut milk caramels
2018 Funding Date: February 1, 2018
2018 Funding: Unknown
Total Funding: $1,170,000
Disclosed Investors: AccelFoods

Joechocolates

Founders: Sam Tanner, Peter Keckemet
Product(s): High caffeine chocolate
2018 Funding Date: July 10, 2018
2018 Funding: $705,000
Total Funding: $705,000
Disclosed Investors: Unknown

Jos. A. Magnus & Co.

Founder: Joseph Magnus
Product(s): Craft spirits
2018 Funding Date: December 5, 2018
2018 Funding: $2,850,000
Total Funding: $2,850,000
Disclosed Investors: Unknown

Keen Bean Organics

Founder: Johnny Kien
Product(s): Kid food pouches
2018 Funding Date: September 14, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Capital Innovators, Food Evolutions, Yara Ventures

Kettle and Fire

Founders: Nick Mares, Justin Mares
Product(s): Bone broth
2018 Funding Date: August 28, 2018
2018 Funding: $8,000,000
Total Funding: $9,000,000
Disclosed Investors: Chobani Food Incubator, Hedgewood, Encore Consumer Capital, Rocana Venture Partners, CAVU Ventures

Kettlebell Kitchen

Founders: Andrew Lopez-Gallego, Andy Lopez-Gallego, Gregory Grossman, Joseph Lopez-Gallego
Product(s): Gym focused meal delivery service
2018 Funding Date: October 9, 2018
2018 Funding: $26,700,000
Total Funding: $30,400,000
Disclosed Investors: North Castle Partners, Spring Bay Ventures

Kite Hill

Founders: Tal Ronnen, Monte Casino, Patrick Brown
Product(s): Almond based yogurt and cheese
2018 Funding Date: October 19, 2018
2018 Funding: $40,000,000
Total Funding: $74,900,000
Disclosed Investors: 301 Inc., CAVU Ventures, Stray Dog Capital, Khosla Ventures, M13 Company, New Crop Capital, Whole Foods
Comments: The massive funding round corresponds to the growth of plant-based cheese and plant-based yogurt overall, which topped $280 million in combined sales as of June 2018 according to data from Nielsen. Nonetheless, Kite Hill faces stiff competition from brands like Califia and Miyoko’s Kitchen.

Kitu Life

Founders: Jim DeCicco, Jake DeCicco, Jordan DeCicco
Product(s): Keto coffee
2018 Funding Date: December 5, 2018
2018 Funding: $13,500,000
Total Funding: $15,411,000
Disclosed Investors: Echo Capital Group, Anthos Capital, Skyview Capital

Kiva Confections

Founder: Scott Palmer and Kristi Knoblich.
Product(s): Cannabis gummies and bars
2018 Funding Date: August 1, 2018
2018 Funding: $8,560,000
Total Funding: $15,059,999
Disclosed Investors: Unknown

Kumana

Founder: Francisco Pavan
Product(s): Avocado sauces
2018 Funding Date: May 14, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Springboard

Kyoku

Founders: Harrison Valner, Ryan Roddy
Product(s): Plant based supplements
2018 Funding Date: November 14, 2018
2018 Funding: $100,000
Total Funding: $100,000
Disclosed Investors: Unknown

Lavva

Founder: Liz Fisher
Product(s): Plant-based yogurt
2018 Funding Date: November 1, 2018
2018 Funding: $2,300,000
Total Funding: $5,800,000
Disclosed Investors: ASW Ventures, S2G Ventures, Collaborative Fund

Laws Whiskey House

Founder: Al Laws
Product(s): Whiskey
2018 Funding Date: June 27, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: First Beverage Group

Lazy Gator’s Hemp Farm

Founder: Dennis Williams
Product(s): Hemp oil.
2018 Funding Date: December 12, 2018
2018 Funding: $165,000
Total Funding: $165,000
Disclosed Investors: Unknown

LesserEvil

Founder: Charles Coristine
Product(s): Popcorn and potato chips
2018 Funding Date: November 19, 2018
2018 Funding: $1,800,000
Total Funding: $1,800,000
Disclosed Investors: InvestEco

Lily’s Sweets

Founders: Cynthia Tice, Chuck Genuardi
Product(s): Chocolate
2018 Funding Date: March 13, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: VMG Partners

Liquid I.V.

Founders: Brandin Cohen, Hayden Fulstone, Cameron Killeen
Product(s): Anti hangover drink
2018 Funding Date: August 28, 2018
2018 Funding: $5,000,000
Total Funding: $5,325,000
Disclosed Investors: CircleUp, TQ Ventures

Little Secrets

Founder: Chris Mears
Product(s): Chocolate candies and wafers
2018 Funding Date: July 19, 2018
2018 Funding: Unknown
Total Funding: $1,250,000
Disclosed Investors: Centerman Capital, Revelry Brands, Sunrise Strategic Partners

Livewell Collective

Founder: David Colina
Product(s): Anti-hangover beverage
2018 Funding Date: June 29, 2018
2018 Funding: $215,000
Total Funding: $215,000
Disclosed Investors: Unknown

Love Corn

Founder: Jamie McCloskey
Product(s): Roasted corn snacks
2018 Funding Date: July 3, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

Love Good Fats

Founder: Suzie Yorke
Product(s): Keto snack bars
2018 Funding Date: December 11, 2018
2018 Funding: $5,000,000
Total Funding: $9,400,000
Disclosed Investors: Unknown

Love Grown Foods

Founders: Alexander Hasulak, Madeleine Hasulak
Product(s): Breakfast foods
2018 Funding Date: December 3, 2018
2018 Funding: $600,000
Total Funding: $9,400,000
Disclosed Investors: Unknown

Maivino

Founder: Mai Vu
Product(s): Wine subscription service
2018 Funding Date: June 11, 2018
2018 Funding: $100,000
Total Funding: $100,000
Disclosed Investors: Unknown

MamaSezz

Founders: Lisa Lorimer, Meg Donahue
Product(s): Plant-based meal delivery service
2018 Funding Date: September 13, 2018
2018 Funding: $750,000
Total Funding: $860,000
Disclosed Investors: Unknown

MANSI

Founder: Charles Medenilla
Product(s): Calamansi juice
2018 Funding Date: February 15, 2018
2018 Funding: $190,000
Total Funding: $190,000
Disclosed Investors: AccelFoods

Maplemama Beverages

Founders: Joe Laur, Sara Schley
Product(s): Maple water
2018 Funding Date: April 25, 2018
2018 Funding: $550,000
Total Funding: $550,000
Disclosed Investors: Unknown

Masienda

Founder: Jorge Gaviria
Product(s): Corn tortillas
2018 Funding Date: March 9, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator, Village Capital

MatchaBar

Founders: Max Fortgang, Graham Fortgang
Product(s): Matcha beverages
2018 Funding Date: July 17, 2018
2018 Funding: $8,000,000
Total Funding: $10,275,000
Disclosed Investors: Bullish, Cambridge SPG, Torch Capital, Chobani Food Incubator, Nebari Ventures

MATI

Founder: Tatiana Birgisson
Product(s): Energy drink
2018 Funding Date: November 2, 2018
2018 Funding: $2,000,000
Total Funding: $7,000,000
Disclosed Investors: Unknown

Metabrew

Founders: Natalie Neumann, Romy Raad
Product(s): Cold brew coffee
2018 Funding Date: January 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: FoodFutureCo

Mighty Squirrel

Founders: Henry Manice, Naveen Pawar
Product(s): Beer
2018 Funding Date: July 11, 2018
2018 Funding: $1,500,000
Total Funding: $5,015,500
Disclosed Investors: Unknown

Mighty Swell

Founders: Clayton Christopher, Daniel Barnes, Sean Cusack, Jason Bronstad
Product(s): Alcoholic spitzer
2018 Funding Date: June 7, 2018
2018 Funding: $1,700,000
Total Funding: $14,000,000
Disclosed Investors: CAVU Ventures, Fort Ventures

Mikaila The Bees

Founder: Mikaila Ulmer
Product(s): Lemonade
2018 Funding Date: June 14, 2018
2018 Funding: $1,160,000
Total Funding: $1,160,000
Disclosed Investors: Unknown

Milkful

Founder: Dina Carey
Product(s): Lactation support bars
2018 Funding Date: January 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Techstars

Mirth Provisions

Founder: Adam Stites
Product(s): Cannabis-infused edibles and drinkables
2018 Funding Date: June 26, 2018
2018 Funding: $1,300,000
Total Funding: $3,300,000
Disclosed Investors: Privateer Holdings

Modern Pop

Founder: Julie Podolec
Product(s): Frozen fruit pops
2018 Funding Date: May 14, 2018
2018 Funding: $721,000
Total Funding: $1,361,000
Disclosed Investors: Cambridge SPG, Rocana Venture Partners, Steelpoint Capital

Mooala

Founder: Jeff Richards
Product(s): Banana milk and almond milk
2018 Funding Date: February 6, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: M3 Ventures, Sweat Equities, Fort Ventures

Morning Recovery

Founder: Sisun Lee
Product(s): Anti hangover drink
2018 Funding Date: April 2, 2018
2018 Funding: $8,200,000
Total Funding: $8,625,000
Disclosed Investors: Slow Ventures

MUD/WTR

Founder: Shane Heath
Product(s): Superfood powder blend
2018 Funding Date: December 12, 2018
2018 Funding: $1,000,000
Total Funding: $1,000,000
Disclosed Investors: _able, M13 Company, 25Madison

Native State Foods

Founders: Angela Palmieri, Claudio Roumain Ochoa
Product(s): Breakfast foods and snacks
2018 Funding Date: December 4, 2018
2018 Funding: $50,000
Total Funding: $650,000
Disclosed Investors: AccelFoods, M13 Company, Terra

Naughty Noah S

Founder: JimmyTay Trinh
Product(s): Instant Vietnamese noodles
2018 Funding Date: November 27, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Food-X

NEOH

Founder: Bernhard Klee
Product(s): Keto bars
2018 Funding Date: June 6, 2018
2018 Funding: $46,000
Total Funding: $46,000
Disclosed Investors: Unknown

New Age Meats

Founder: Brian Spears
Product(s): Cultured meat
2018 Funding Date: July 6, 2018
2018 Funding: $250,000
Total Funding: $250,000
Disclosed Investors: Food-X, Indie.Bio

New Barn

Founders: Ted Robb, Billie Thein
Product(s): Almond milk
2018 Funding Date: October 9, 2018
2018 Funding: $18,750,000
Total Funding: $18,750,000
Disclosed Investors: Almanac Insights

NOKA

Founders: Ryan Werner, Adam Steiner
Product(s): Plant protein smoothies
2018 Funding Date: March 9, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Ridgeline Ventures, Chobani Food Incubator

Nomi

Founder: Will Handke
Product(s): Refrigerated bar
2018 Funding Date: February 1, 2018
2018 Funding: $925,000
Total Funding: $925,000
Disclosed Investors: AccelFoods

nona lim

Founder: Nona Lim
Product(s): Asian inspired broths, soups and noodles
2018 Funding Date: January 1, 2018
2018 Funding: $1,525,000
Total Funding: $4,525,000
Disclosed Investors: AccelFoods, Cambridge SPG, CircleUp, Echo Capital Group, Harbinger Ventures, Almanac Insights, Chobani Food Incubator

NUGGS

Founder: Christie Lagally
Product(s): Plant based chicken nuggets
2018 Funding Date: January 13, 2018
2018 Funding: $1,750,000
Total Funding: $1,750,000
Disclosed Investors: Fifty Years, Blue Horizon

Nurture Life

Founders: Steve Minisini, Jennifer Chow
Product(s): DTC baby food
2018 Funding Date: November 30, 2018
2018 Funding: $6,200,000
Total Funding: $6,200,000
Disclosed Investors: Nebari Ventures, Atlas Capital, G-Bar Ventures

Once Upon a Farm

Founders: Cassandra Curtis, Ari Raz, John Foraker, Jennifer Garner
Product(s): Baby food
2018 Funding Date: October 9, 2018
2018 Funding: $20,000,000
Total Funding: $23,100,000
Disclosed Investors: Cambridge SPG, Harbinger Ventures, S2G Ventures, CAVU Ventures, Beechwood Capital, Everplus Capital
Comments: If anyone can muscle their way into the crowded baby food category (e.g. Kidfresh, NuturMe, etc.) it’s a dream team including John Foraker, who sold Annie’s to General Mills for in excess of $800 million and grounded A-lister Jennifer Garner. The brand also deserves bonus points for its supply chain transparency and excellent e-commerce design, the later an increasingly vital channel in the Age of Amazon.

One Kombucha

Founder: Danny Mancini
Product(s): Kombucha
2018 Funding Date: October 9, 2018
2018 Funding: $1,200,000
Total Funding: $1,200,000
Disclosed Investors: Unknown

Ono Food Co

Founders: Daniel Fukuba, Stephen Klein
Product(s): Premium meal delivery service
2018 Funding Date: July 23, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Lemnos VC, Pathbreaker Ventures, Compound

Outstanding Foods

Founders: Bill Glaser, Dave Anderson
Product(s): Plant based chicharrones
2018 Funding Date: April 20, 2018
2018 Funding: $1,500,000
Total Funding: $1,500,000
Disclosed Investors: Blue Horizon, New Crop Capital

Owen’s Craft Mixers

Founders: Josh Miller, Tyler Holland
Product(s): Cocktail mixers
2018 Funding Date: August 7, 2018
2018 Funding: $1,532,500
Total Funding: $1,532,500
Disclosed Investors: Unknown

Owluma

Founders: Chris Williamson, Vladimir Herrera
Product(s): Kombucha
2018 Funding Date: July 1, 2018
2018 Funding: $20,000
Total Funding: $20,000
Disclosed Investors: Union Kitchen

Partake Foods

Founder: Denise Woodard
Product(s): Vegan cookies
2018 Funding Date: September 18, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator

Pasturebird Inc

Founders: Paul Greive, Jeff McDaniel, Robert McDaniel
Product(s): Sustainable chicken
2018 Funding Date: April 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

Perfect Day

Founder: Perumal Gandhi
Product(s): Cell based milk
2018 Funding Date: February 27, 2018
2018 Funding: $24,700,000
Total Funding: $74,700,000
Disclosed Investors: Horizons Ventures, ICONIQ Capital

Persona

Founder: Jason Brown
Product(s): Personalized supplements
2018 Funding Date: December 3, 2018
2018 Funding: $4,500,000
Total Funding: $4,500,000
Disclosed Investors: Emil Capital Partners, L Catterton, Mindset Venture Group

PICNIK

Founder: Naomi Seifter
Product(s): Keto coffee
2018 Funding Date: August 30, 2018
2018 Funding: $7,500,000
Total Funding: $7,500,000
Disclosed Investors: KarpReilly, Noroc Naturals

Planetarians

Founders: Aleh Manchuliantsau, Anastasia Tkacheva
Product(s): Upcycled protein chips
2018 Funding Date: September 25, 2018
2018 Funding: $110,000
Total Funding: $860,000
Disclosed Investors: Food-X, Techstars, Blu1877

Plus Products

Founder: Jake Heimark
Product(s): THC and CBD enhanced chews
2018 Funding Date: April 10, 2018
2018 Funding: $6,000,000
Total Funding: $7,840,000
Disclosed Investors: Serruya Private Equity

Poppilu

Founder: Melanie Kahn
Product(s): Antioxidant lemonade
2018 Funding Date: May 14, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Springboard

Porchjam

Founder: Gordon Stewart
Product(s): Craft spirits
2018 Funding Date: August 21, 2018
2018 Funding: $338,000
Total Funding: $338,000
Disclosed Investors: Unknown

Primizie

Founders: Founder(s) :Lisa Marshall Spedale, Mark Spedale
Product(s): Crispbread chips
2018 Funding Date: July 31, 2018
2018 Funding: $3,700,000
Total Funding: $7,200,000
Disclosed Investors: SKU, Tasty Ventures, Boulder Brands, CircleUp

Puffworks

Founder: Greg Murphy
Product(s): Peanut butter puffs
2018 Funding Date: March 9, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator

Quevos

Founders: Nick Hamburger, Zack Schreier
Product(s): Egg white chips
2018 Funding Date: May 14, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Springboard
Comments: Founded by two University of Chicago students, Quevos is making savory crisps from egg whites that are high in protein and devoid of carbs. The product fits perfectly into the still growing keto trend and is one of the few recent offerings in the chip category to truly differentiate itself.

Raised Real

Founders: Michelle Davenport, Santiago Merea, Steven Kontz
Product(s): Kid focused meal delivery service
2018 Funding Date: November 2, 2018
2018 Funding: $2,000,000
Total Funding: $7,000,000
Disclosed Investors: Schwan’s Shared Services

REBBL

Founder: Sheryl O’Loughlin
Product(s): Superfood drinks and elixirs
2018 Funding Date: May 18, 2018
2018 Funding: $20,000,000
Total Funding: $37,100,000
Disclosed Investors: Blueberry Ventures, Boulder Investment Group Reprise (BIGR Ventures), CircleUp, Powerplant Ventures, Just Business, CAVU Ventures

Recess

Founder: Benjamin Witte
Product(s): CBD sparkling water
2018 Funding Date: June 30, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: Torch Capital, Life Capital, M3 Ventures

Regrained

Founders: Dan Kurzrock, Jordan Schwartz
Product(s): Upcycled grain bars
2018 Funding Date: September 26, 2018
2018 Funding: $2,500,000
Total Funding: $2,500,000
Disclosed Investors: Blu1877

Remedy Organics

Founders: Henry Kasindorf, Cindy Kasindorf
Product(s): Plant based wellness drinks
2018 Funding Date: March 9, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator

RETHINK Water

Founders: Matthew Swanson, Chris Donovan
Product(s): Water
2018 Funding Date: July 23, 2018
2018 Funding: $6,700,000
Total Funding: $8,700,000
Disclosed Investors: AccelFoods

Riff Cold Brew

Founders: Paul Evers, Nate Armbrust, Bobby Evers, Kevin Smyth, Steve Barham
Product(s): Cold brew coffee
2018 Funding Date: October 17, 2018
2018 Funding: $1,000,000
Total Funding: $1,000,000
Disclosed Investors: Unknown

Ripe Gelato

Founder: Gregory Reck
Product(s): Avocado gelato
2018 Funding Date: March 1, 2018
2018 Funding: $20,000
Total Funding: $20,000
Disclosed Investors: Union Kitchen

Ripple Foods

Founders: Neil Renninger, Adam Lowry
Product(s): Pea milk
2018 Funding Date: January 29, 2018
2018 Funding: $65,000,000
Total Funding: $108,600,000
Disclosed Investors: Blueberry Ventures, Collaborative Fund, Finn Capital Partners, GV, Powerplant Ventures, Prelude Ventures, Radicle Impact Partners, S2G Ventures, TAO Capital, Khosla Ventures

RISE Brewing Co.

Founders: Grant Gyesky, Jarrett McGovern, Justin Weinstein, Hudson Gaines-Ross, Melissa Kalimov
Product(s): Organic nitro cold brew coffee
2018 Funding Date: July 10, 2018
2018 Funding: $2,310,866
Total Funding: $4,860,614
Disclosed Investors: Winklevoss Capital, Elizabeth Street

Risen Labs

Founder: Jacob Jones
Product(s): Cannabis products
2018 Funding Date: October 3, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

ROAR Organic

Founder: Roly Nesi
Product(s): Electrolyte beverages
2018 Funding Date: December 13, 2018
2018 Funding: $5,600,000
Total Funding: $10,600,000
Disclosed Investors: L.A. Libations, AccelFoods

RollinGreens

Founders: Lindsey Cunningham, Ryan Cunningham
Product(s): Millet tots
2018 Funding Date: November 15, 2018
2018 Funding: $100,000
Total Funding: Unknown
Disclosed Investors: Unknown

Rustic Crust

Founder: Brad Sterl
Product(s): Pizza crust
2018 Funding Date: June 28, 2018
2018 Funding: $8,000,000
Total Funding: $16,620,000
Disclosed Investors: Renewal Funds, SJF Ventures, Advantage Capital Partners

SafeCatch

Founders: Sean Wittenberg, Bryan Boches
Product(s): Canned tuna
2018 Funding Date: February 8, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: Echo Capital Group

Seal the Seasons

Founder: Patrick Mateer
Product(s): Frozen produce
2018 Funding Date: July 10, 2018
2018 Funding: $1,800,000
Total Funding: $2,800,000
Disclosed Investors: Myca Partners, Chobani Food Incubator

Sfoglini

Founders: Steve Gonzalez, Scott Ketchum
Product(s): Pasta
2018 Funding Date: June 14, 2018
2018 Funding: $2,500,000
Total Funding: $2,500,000
Disclosed Investors: Fresh Source Capital, Almanac Insights

Siren Snacks

Founder: Elizabeth Giannuzzi
Product(s): Plant-based protein bites
2018 Funding Date: February 26, 2018
2018 Funding: $1,000,000
Total Funding: $1,000,000
Disclosed Investors: Pear Ventures

Skinny Dipped Almonds

Founders: Valerie Griffith, Breezy Griffith
Product(s): Chocolate covered almonds
2018 Funding Date: July 31, 2018
2018 Funding: $3,750,000
Total Funding: $9,000,000
Disclosed Investors: CAVU Ventures, AccelFoods

SmartSweets

Founder: Tara Bosch
Product(s): Sugar free candy
2018 Funding Date: March 27, 2018
2018 Funding: $3,000,000
Total Funding: $3,000,000
Disclosed Investors: Unknown

SmashMallow

Founder: Jonathan Sebastiani
Product(s): Marshmallow snacks
2018 Funding Date: January 9, 2018
2018 Funding: $10,000,000
Total Funding: $10,000,000
Disclosed Investors: Sonoma Brands, VMG Partners
Comments: SmashMallow is the first spin-off from Sonoma Brands, the investor and incubator founded by Jonathan Sebastiani of Krave Jerky fame. The brand was on pace to do nearly $30 million in revenue for 2018, which affirms the potential of brands that, while not subscribing to every diet and health trend, offer consumers something new, exciting and different.

Smpl

Founder: Ellis Fried
Product(s): Superfood bites
2018 Funding Date: September 18, 2018
2018 Funding: $100,000
Total Funding: $100,000
Disclosed Investors: Unknown

Sonder

Founders: Faun Chapin, M. Paradise
Product(s): Cannabis products
2018 Funding Date: May 15, 2018
2018 Funding: $250,000
Total Funding: $250,000
Disclosed Investors: Unknown

Soozy’s

Founders: Mason Sexton, Susan Chen
Product(s): Muffins
2018 Funding Date: June 6, 2018
2018 Funding: $2,500,000
Total Funding: $2,500,000
Disclosed Investors: Boulder Investment Group Reprise (BIGR Ventures), AccelFoods

Spero Foods

Founder: Phaedra Randolph
Product(s): Plant-based products
2018 Funding Date: August 4, 2018
2018 Funding: $120,000
Total Funding: $120,000
Disclosed Investors: Outbound Ventures

Spiceologist

Founders: Heather Scholten, Pete Taylor
Product(s): Spices
2018 Funding Date: October 18, 2018
2018 Funding: $942,700
Total Funding: $1,312,700
Disclosed Investors: Unknown

Spindrift

Founder: Bill Creelman
Product(s): Fruit flavored sparkling water
2018 Funding Date: March 15, 2018
2018 Funding: $20,000,000
Total Funding: $43,500,000
Disclosed Investors: KarpReilly, New Ground Ventures, Prolog Ventures, Revelry Brands, RiverPark Ventures, VMG Partners, Warbos Venture Partners, Almanac Insights
Comments: No commentary needed other than declaring Spindrift (apart from RISE Brewing Co., of course!) is my favorite beverage on the market today. The branding, nutrition and taste are all exceptionally well executed and I’m proud to count myself as a loyal supporter.

Splendid Spoon

Founders: Founder(s) : Nicole Centeno, Sathish Naadimuthu
Product(s): Direct to consumer smoothies and soups
2018 Funding Date: May 1, 2018
2018 Funding: Unknown
Total Funding: $3,300,000
Disclosed Investors: Torch Capital

Sportwater Beverages

Founders: Albert Lian, Peter DiMartino
Product(s): Electrolyte beverages
2018 Funding Date: May 25, 2018
2018 Funding: $840,800
Total Funding: $4,956,559
Disclosed Investors: Unknown

Square Organics

Founders: Sarah Gordon, Andrew Gordon
Product(s): Protein bars
2018 Funding Date: March 18, 2018
2018 Funding: $500,000
Total Funding: $500,000
Disclosed Investors: Thrive Market Ventures, M13 Company, Just Business

Star Vodka

Founder: Charles Ferri
Product(s): Craft vodka
2018 Funding Date: July 17, 2018
2018 Funding: $70,000
Total Funding: $120,000
Disclosed Investors: Unknown

Stryve

Founders: Gabe Carimi, Ted Casey, Joe Oblas
Product(s): Jerky
2018 Funding Date: September 13, 2018
2018 Funding: $10,000,000
Total Funding: $10,000,000
Disclosed Investors: Meaningful Partners

Suckerpunch Gourmet

Founder: David van Alphen
Product(s): Bloody mary mix and condiments
2018 Funding Date: July 3, 2018
2018 Funding: $727,000
Total Funding: $727,000
Disclosed Investors: Unknown

Sun Basket

Founders: Adam Zbar, Braxton Woodham
Product(s): Organic meal kit delivery
2018 Funding Date: January 25, 2018
2018 Funding: $59,300,000
Total Funding: $113,100,000
Disclosed Investors: Sapphire Ventures, PivotNorth Capital, Relevance Capital, August Capital, Correlation Ventures, Unilever Ventures, Accolade Partners, Founders Circle Capital, Baseline Ventures, Trinity Capital Investment

Sunrhize Foods

Founders: Stem Kent, Lawrence Johnson
Product(s): Tempeh
2018 Funding Date: October 11, 2018
2018 Funding: $230,000
Total Funding: $230,000
Disclosed Investors: Unknown

Sunsoil

Founders: Alejandro Bergad, Jacob Goldstein
Product(s): CBD oils and hemp products.
2018 Funding Date: November 18, 2018
2018 Funding: $7,000,000
Total Funding: $7,000,000
Disclosed Investors: One Better Ventures

Supernatural

Founder: Carmel Hagen
Product(s): Baking products
2018 Funding Date: September 18, 2018
2018 Funding: $25,000
Total Funding: $25,000
Disclosed Investors: Chobani Food Incubator

Sweet A Little

Founder: Connie Cong Xu
Product(s): Tea delivery service
2018 Funding Date: May 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: UpHonest Capital

Swish Beverages

Founders: Josh Ostrovsky, Tanner Cohen, David Cohen, Alexander Ferzan
Product(s): Canned wine
2018 Funding Date: March 13, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: ZX Ventures

Synapse

Founders: Daniel Porada, Charles Lankau, Shouvik Ganguly
Product(s): Energy drinks
2018 Funding Date: November 28, 2018
2018 Funding: $1,000,000
Total Funding: $1,000,000
Disclosed Investors: Unknown

tea drops

Founder: Sashee Chandran
Product(s): Teas that dissolve
2018 Funding Date: June 26, 2018
2018 Funding: $1,900,000
Total Funding: $1,900,000
Disclosed Investors: AccelFoods

teaRIOT

Founder: Laura Jakobsen
Product(s): Bottled tea
2018 Funding Date: October 30, 2018
2018 Funding: $1,255,000
Total Funding: $5,715,000
Disclosed Investors: Chobani Food Incubator

TeaSquares

Founder: Jordan Buckner
Product(s): Caffeinated energy bites
2018 Funding Date: September 4, 2018
2018 Funding: $350,000
Total Funding: $375,000
Disclosed Investors: Spiral Sun Ventures, Chobani Food Incubator

Tender Belly

Founders: Shannon Duffy, Erik Duffy
Product(s): Bacon, Ham, Pork, Sausage and other proteins
2018 Funding Date: May 30, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Encore Consumer Capital

Terramino Foods

Founder: Kimberlie Le
Product(s): Plant based seafood
2018 Funding Date: July 25, 2018
2018 Funding: $4,250,000
Total Funding: $4,250,000
Disclosed Investors: True Ventures, Collaborative Fund

The Buttermilk Company

Founder: Mitra Raman
Product(s): Plant-based frozen indian meals
2018 Funding Date: August 20, 2018
2018 Funding: $120,000
Total Funding: $120,000
Disclosed Investors: Unknown

The Honest Stand

Founders: Jeremy Day, Alexandra Carone
Product(s): Plant based cheese and nacho dips
2018 Funding Date: November 2, 2018
2018 Funding: $1,000,000
Total Funding: $1,000,000
Disclosed Investors: Unknown

The Industrious Spirit Company

Founder: Manya Rubinstein
Product(s): Craft spirits
2018 Funding Date: November 30, 2018
2018 Funding: $1,315,000
Total Funding: $1,315,000
Disclosed Investors: Unknown

The Living Apothecary

Founder: Shari Stein Curry
Product(s): Probiotic water kefir
2018 Funding Date: October 24, 2018
2018 Funding: $1,400,000
Total Funding: $1,400,000
Disclosed Investors: L.A. Libations, Venice Brands, LivWell Ventures

The Toasted Oat Bakehouse

Founder: Erika Boll
Product(s): Gluten-free granola
2018 Funding Date: October 5, 2018
2018 Funding: $1,120,000
Total Funding: $1,492,000
Disclosed Investors: AccelFoods, Rev1

Theo Chocolate

Founders: Jeff Fairhall, Joe Whinney
Product(s): Bean to bar chocolate
2018 Funding Date: September 19, 2018
2018 Funding: $2,025,000
Total Funding: $2,025,000
Disclosed Investors: Unknown

Torie Howard

Founders: Torie Burke, Howard Slatkin
Product(s): Premium candies
2018 Funding Date: August 22, 2018
2018 Funding: $400,000
Total Funding: $1,400,000
Disclosed Investors: Unknown

Tosi Health

Founders: Stefanie Hults, Bahar Sedarati
Product(s): Bites and bars
2018 Funding Date: August 16, 2018
2018 Funding: $1,250,000
Total Funding: $1,250,000
Disclosed Investors: Cambridge SPG, Stage 1 Fund

Trifecta 5C2C

Founders: Elizabeth Connolly, Greg Connolly, Tyler Thomas
Product(s): Organic and community focused meal delivery service
2018 Funding Date: January 15, 2018
2018 Funding: $2,600,000
Total Funding: $2,600,000
Disclosed Investors: Unknown

Trimino

Founders: Robert Leary, Peter Dacey, Casey Hoban
Product(s): Protein infused water
2018 Funding Date: June 5, 2018
2018 Funding: $6,000,000
Total Funding: $8,500,000
Disclosed Investors: L.A. Libations, Vineyard Point Associates

UCAN

Founder: Shoba Murali
Product(s): Supplements
2018 Funding Date: June 12, 2018
2018 Funding: $5,750,000
Total Funding: $10,100,000
Disclosed Investors: Eighteen94 Capital, S2G Ventures

Uplift Food

Founder: Kara Landau
Product(s): Gut health supplements
2018 Funding Date: March 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: SnackFutures, Food-X

Uptime

Founder: Benjamin Kim
Product(s): Energy drinks and supplements
2018 Funding Date: April 27, 2018
2018 Funding: $8,018,885
Total Funding: $9,518,885
Disclosed Investors: TSG Consumer Partners

Urban Remedy

Founder: Neka Pasquale
Product(s): Delivered ready-to-eat meals, juices, cleanses & snacks
2018 Funding Date: January 17, 2018
2018 Funding: $17,000,000
Total Funding: $17,000,000
Disclosed Investors: 301 Inc., Obvious Ventures, The Builders Fund

Van Leeuwen Ice Cream

Founders: Ben Van Leeuwen, Laura O’Neill, Peter Van Leeuwen
Product(s): Vegan and milk based ice cream
2018 Funding Date: August 6, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: M3 Ventures, Blue Scorpion Investments, Strand Equity Partners

Vegy Vida

Founder: Josh Young
Product(s): Veggie dips for kids
2018 Funding Date: March 5, 2018
2018 Funding: $1,800,000
Total Funding: $1,800,000
Disclosed Investors: Unknown

Vera Roasting Company

Founder: Glen Miller
Product(s): Resveratrol infused coffee
2018 Funding Date: November 2, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Unknown

Verb Energy

Founders: Andre Monteiro, Bennett Byerley, Isaac Morrier, Matt Czarnecki
Product(s): Energy bars
2018 Funding Date: March 2, 2018
2018 Funding: $1,000,000
Total Funding: $1,000,000
Disclosed Investors: Great Oaks Venture Capital, Vast Ventures

Vintage Wine Estates

Founder: Pat Roney
Product(s): Wine
2018 Funding Date: August 22, 2018
2018 Funding: $75,000,000
Total Funding: $75,000,000
Disclosed Investors: Sonoma Brands, AGR Partners

VitaCup

Founder: Brandon Fishman
Product(s): Vitamin infused k-cup coffee
2018 Funding Date: October 10, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: First Beverage Group, North Castle Partners

Vitox Drinking Vinegar

Founders: Iris Kim, Josh Kim
Product(s): Drinking vinegar
2018 Funding Date: August 23, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Food-X

Vive Organic

Founders: JR Simich, Kyle Withycombe, Wyatt Taubman
Product(s): Wellness shots
2018 Funding Date: January 1, 2018
2018 Funding: $7,000,000
Total Funding: $7,000,000
Disclosed Investors: Cambridge SPG, Blueberry Ventures, Powerplant Ventures, Stage 1 Fund, Döhler Ventures

Vivify Beverages

Founder: Bob Walkenhorst
Product(s): Alcoholic Italian sodas
2018 Funding Date: December 7, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Constellation Ventures

Wahi Nutrition

Founders: Peter Blankenship, Sam Blankenship
Product(s): Water
2018 Funding Date: November 9, 2018
2018 Funding: $100,000
Total Funding: $100,000
Disclosed Investors: Unknown

Walden Local Meat

Founder: Charley Cummings
Product(s): Sustainable meats
2018 Funding Date: May 31, 2018
2018 Funding: $1,400,000
Total Funding: $1,400,000
Disclosed Investors: Unknown

Wandering Bear Coffee

Founders: Ben Gordon, Matthew Bachmann
Product(s): Cold brew coffee
2018 Funding Date: February 5, 2018
2018 Funding: $8,000,000
Total Funding: $10,450,000
Disclosed Investors: AccelFoods, Eminence Capital, M3 Ventures, RCV Partners

Waterloo

Founders: Brandon Cason, Sean Cusack, Daniel Barnes
Product(s): Sparkling water
2018 Funding Date: May 1, 2018
2018 Funding: $4,000,000
Total Funding: $7,200,000
Disclosed Investors: CAVU Ventures

Weller

Founders: John Simmon, Matt Oscamou
Product(s): CBD coconut snacks
2018 Funding Date: March 5, 2018
2018 Funding: $1,250,000
Total Funding: $1,250,000
Disclosed Investors: Harrison Metal

Wicked Lekker

Founders: Mylan Janoplis, Pamela Stahl
Product(s): Rooibos tea beverages
2018 Funding Date: March 7, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: Wavemaker Partners

Wild Alaskan

Founder: Arron Kallenberg
Product(s): Direct to consumer sustainable seafood
2018 Funding Date: April 27, 2018
2018 Funding: $500,000
Total Funding: $500,000
Disclosed Investors: Unknown

Wild Friend Foods

Founders: Keeley Tillotson, Erika Welsh
Product(s): Nut butters and oatmeal
2018 Funding Date: November 20, 2018
2018 Funding: $4,000,000
Total Funding: $5,290,000
Disclosed Investors: CircleUp, Cambridge SPG, Echo Capital Group, Katjesgreenfood

Wild Type

Founder: Justin Kolbeck
Product(s): Cell based meat
2018 Funding Date: March 6, 2018
2018 Funding: $3,444,999
Total Funding: $3,444,999
Disclosed Investors: Spark Capital

Wilde Brands

Founder: Jason Wright
Product(s): Chicken chips
2018 Funding Date: August 30, 2018
2018 Funding: $1,300,000
Total Funding: $2,890,000
Disclosed Investors: CircleUp, Echo Capital Group, Finn Capital Partners, M13 Company, Clover Capital Partners

wildkind

Founder: Zoe Lloyd
Product(s): Plant-based frozen meals
2018 Funding Date: January 1, 2018
2018 Funding: Unknown
Total Funding: Unknown
Disclosed Investors: FoodFutureCo

Willie’s Superbrew

Founder: Nico Enriquez
Product(s): Ginger beer
2018 Funding Date: February 7, 2018
2018 Funding: $2,300,000
Total Funding: $3,100,000
Disclosed Investors: Chobani Food Incubator

Yerbae

Founder: Todd Gibson
Product(s): Energy, sparkling water beverages
2018 Funding Date: December 3, 2018
2018 Funding: $5,000,000
Total Funding: $5,000,000
Disclosed Investors: Zenfinity Capital

The post 2018 U.S. Food & Beverage Startup Investment Report appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A & Partnerships: September 2016

Brita Rosenheim — Mon, 07 Nov 2016 19:20:19 +0000

This is a monthly guest post written by consulting firm Rosenheim Advisors; it highlights the most interesting acquisitions, financings and partnerships within the Food Tech & Media ecosystem – digital content, social, local, mobile, grocery, e-commerce, delivery, ordering, payments, marketing and analytics – to give you insights into the latest funding and growth trends.

The food tech ecosystem brought in over $665 million of capital in September, with a little over half attributed to the IPO of Dutch food delivery marketplace Takeaway.com. There were 17 private companies who announced funding during the month, raising close to $300 million in total private capital, half of which were U.S.-based. Within this, Fresh Direct’s private equity infusion of $189 million was the largest raise during the month.

With six relatively early stage deals announced in September, M&A activity was a bit light but notably international as nearly every acquisition announced took place outside the U.S. Among the larger strategics, Just Eat and Zomato were active acquirers during the month as well as iZettle, a fast-growing mobile payments and POS startup.

While meal delivery, meal kits and grocery continue to be well-represented categories, there was a lot of activity among SaaS-based restaurant ops players, both on the M&A front as well as funding. Top themes included business automation, reservations and point of sale solutions.

M&A

Zomato Acquires Sparse Labs. The Guragon, India-based delivery monitoring technology will allow Zomato to enhance its delivery technology. Sparse Labs technology allows both the company and customer to view the location and progress of a delivery in real time via mobile app. Zomato will incorporate this technology into its meal delivery services, which rely on individual restaurant’s own delivery teams to complete their orders. With the acquisition, Sparse Labs will become Zomato Trace.

Announced: 09/26/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: July 2014

U-Feast Acquires Pass the Table. As a competitor to U-Feast which offers exclusive weekly “feasts” at different area restaurants, Pass the Table allows consumers to customize their menu and food experience at restaurants. Pass the Table will bring U-Feast 2,000 new customers. With the acquisition, the co-founders of Pass the Table will join U-Feast as a chief experience officer and a member of the board of directors. According to Betakit, in the coming year U-Feast plans to launch a new user interface focusing on “customization and building out its data analytics engine to better target customers”.

Announced: 09/23/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2014

1C Acquires Quick Resto. The Moscow-based SaaS solution for restaurant business automation sold a controlling stake to 1C, a Russian enterprise software giant. According to East-West Digital News, 1C intends to develop the company further with its founders.

Announced: 09/12/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2013

Eating with the Seasons Acquires Bay Area Operations of Farmigo. Farmigo announced this summer that they would sell their delivery operations and continue solely working to develop their software system. Eating with the Seasons has bought the Bay Area operations and will add Farmigo customers to its current local food delivery service under the name Farmhouse Foods. Farmigo is reportedly looking to sell its Seattle and New York operations as well.

Announced: 09/09/16 Terms: Not Disclosed Previous Investment: Not Disclosed (Divestiture) Founded: 2009

iZettle Acquires intelligentpos. The Edinburgh, UK-based cloud-based point of sale system will enhance iZettle’s mobile point of sale system by integrating advanced features such as stock and table management. According to TechCrunch, intelligentpos, which has been a partner to iZettle for three years, will add another €500 million in processing volume to the €3 billion that iZettle already processes annually. TechCrunch also notes that this may be just the beginning of an acquisition spree for iZettle as the company is company is “looking to go beyond its original payment roots as a route to more recurring revenue and a wider customer base”.

Announced: 09/06/16 Terms: Not Disclosed (Cash and Equity) Previous Investment: $0.8m Founded: 2013

Just Eat Acquires Partial Assets of Tok Tok Tok. The France-based shopping and delivery service, which operates similarly to Postmates, will provide Just Eat with logistics technology to further manage restaurant delivery drivers. According to TechCrunch, the company had been “on its last legs for a while now”, and with the sale of the assets will be shutting down.

Announced: 09/06/16 Terms: Not Disclosed Previous Investment: $2.0m Founded: February 2012

Revel Systems Acquires iqPOSitive. The Russian developer of cloud-based automation solutions for restaurant businesses offers tablet-based solutions for a range of process including checkout, employee schedule and inventory management. The transaction reportedly took place in May, with iqPOSitive now operating as a subsidiary of Revel Systems.

Announced: 08/15/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2014

FUNDING

Takeaway.com Raises $368m in IPO. The Amsterdam, Netherlands-based online meal delivery service allows consumers to order meals from restaurants for on-demand delivery. Takeaway provides restaurants with an online ordering platform, and the meals are delivered by restaurants’ own delivery services. Takeaway operates in Europe and parts of Asia. As TechCrunch notes, Takeaway.com priced its shares at €23 each ($25.82), giving the company an enterprise value of around €849 million ($952 million) and a market cap of around €993 million ($1.1 billion).

Announced: 09/30/16 Valuation (at IPO): $1.1 billion Stage: IPO Previous Investment: $118.0 million Founded: 2000

Home Chef Raises $40m. The Chicago, IL-based meal kit delivery service offers a menu of recipe kits updated weekly. Kits include prepared ingredients and directions and can be customized with add-ons including breakfast and fruit baskets. Home Chef has distribution centers in Chicago, Los Angeles, and Atlanta and ships kits throughout the United States. The company delivers over 1.5 million meal kits per month, and has recently increased its team to 600. The investment will be used for growth.

Announced: 09/29/16 Stage: Series B Participating Institutional Investors: L Catterton Previous Investment: $16.0 million Founded: June 2013

VMO Raises Undisclosed Funding. The Kuala Lumpur, Malaysia-based platform for event scheduling allows customers to book venues for events for free. VMO offers over 650 venues and services, and 20% of those may be booked instantly online. Strategic investor, Rhombus Food, operates popular eateries in Malaysia and saw a stream of bookings to their restaurants from VMO, which led to the funding. VMO plans to use the investment to expand in Malaysia.

Announced: 09/27/16 Stage: Seed Participating Institutional Investors: Rhombus Food Holdings Previous Investment: Not Disclosed Founded: August 2014

Fresh Direct Raises $189m. The Long Island City, NY-based grocery delivery service has grown to $600 million in revenue and has been profitable since 2010. In addition to its core order-ahead service, Fresh Direct also operates FoodKick, which delivers food in an hour. Fresh Direct currently operates in New York, New Jersey, Pennsylvania, Connecticut, and Delaware. The investment will be used for “manufacturing capacity” and expansion to “new geographies.” According to Reuters, the CEO has said it is ‘too early’ to comment on potential plans for either an initial public offering or a sale to a larger competitor.

Announced: 09/26/16 Stage: Private Equity Participating Institutional Investors: J.P. Morgan Asset Management (lead), AARP, W Capital Partners Previous Investment: $91.0 million Founded: July 2002

Umi Kitchen Raises $1.4m. The New York, NY-based mobile app offers a home-cooked meal delivery marketplace. Home cooks apply to cook for the platform, and the app offers users 4 to 7 meal choices each night. Meals are delivered to consumers by Postmates. Umi Kitchen currently operates in Brooklyn and Manhattan for dinners five days a week.

Announced: 09/26/16 Stage: Seed Participating Institutional Investors: BoxGroup, Version One Ventures, SWTLF Ventures, YEI Innovation Fund Previous Investment: Not Disclosed Founded: March 2015

Chef’s Plate Raises $6m. The Toronto, Canada-based meal kit delivery service allows consumers to select recipes they want to cook and delivers pre-portioned ingredients and directions. Recipe offerings are changed weekly, and each meal takes about 30 minutes to prepare once delivered. Chef’s Plate currently has distribution centers in Ontario and Vancouver. An estimated 200,000 kits are delivered each month, with sales increasing 10 percent week to week.

Announced: 09/20/16 Stage: Series A Participating Institutional Investors: Acton Capital Partners (lead), BrandProject, Emil Capital Partners, Linas Matkasse Previous Investment: $2.0 million Founded: December 2014

Brava Raises $12m. The Mountain View, CA-based domestic automation company specializing in food and kitchen experiences produces hardware and software to “simplify aspects of daily life”. Brava is currently working on a kitchen appliance, and according to TechCrunch, the product will be “for everyone” and “not a luxury item.” Brava plans to launch their first product sometime next year.

Announced: 09/20/16 Stage: Series A Participating Institutional Investors: True Ventures (lead), Aileen Lee, Chris Anderson, Robert H Reid Previous Investment: Not Disclosed Founded: 2016

Allset Raises $2.35m. The San Francisco, CA-based mobile app allows restaurant patrons to book a table, order their meal, and pay in advance. The aim of the app is to decrease wait time and let consumers finish their restaurant experience in 30 minutes. Allset currently operates in San Francisco, Palo Alto, and Manhattan. It operates in over 180 restaurants and serves over 8,500 customers per month. The investment will be used for expansion to Los Angeles and Chicago, as well as product research, development, and marketing.

Announced: 09/20/16 Stage: Seed Participating Institutional Investors: Compound (lead), Andreessen Horowitz, FJ Labs, SMRK VC Fund Previous Investment: $1.5 million Founded: April 2015

SmartBite Raises Undisclosed Funding. The Petaling Jaya, Malaysia-based food delivery service delivers lunches to working professionals. People who use the service get a text message each morning with a daily menu and reply with their choice of options to select their meal. Currently, SmartBite only offers lunch deliveries, but the company has plans to offer breakfast, snacks, and take-home dinners.

Announced: 09/19/16 Stage: Seed Participating Institutional Investors: Marna Capital, Noodles, Rhombus Previous Investment: Not Disclosed Founded: 2016

Swiggy Raises $15m. The Bangalore, India-based meal delivery service provides restaurant meals to consumers with on-demand delivery. Swiggy claims to have the fastest delivery rates in India, with an average time of 37 minutes. Swiggy currently operates in 8 cities, works with over 9000 restaurants, and processes over 40000 orders per day. The funding will be used to increase delivery efficiency, upgrade technology, and expand the number of restaurants.

Announced: 09/19/16 Stage: Series D Participating Institutional Investors: Bessemer Venture Partners, Accel Partners, Norwest Venture Partners, SAIF Partners Previous Investment: $60.5 million Founded: August 2014

FoodChéri raises $6.7m. The Paris, France-based online restaurant offers healthy meals prepared by chefs for delivery. Orders are taken in advance and on-demand, and meals are delivered ready to reheat. FoodCheri currently serves over 1,000 meals per day and operates in Paris and surrounding suburbs. The company will use the funding to expand in France, to increase its staff, and to develop.

Announced: 09/19/16 Stage: Series A Participating Institutional Investors: 360 Capital Partners (lead), Breega Capital (lead), Samaipata Ventures Previous Investment: Not Disclosed Founded: April 2015

Sourcery Raises $5m. The San Francisco, CA-based app allows restaurants to digitally manage orders, inventory, and costs. Restaurants can scan and upload invoices and receipts, and the Sourcery app will organize the information. Sourcery will use the funds to create an app feature that will allow vendors to send and track invoices and bill customers.

Announced: 09/13/16 Stage: Venture Participating Institutional Investors: Marker (lead), Palantir Technologies, Steadfast Venture Capital Previous Investment: $8.0 million Founded: 2012

eBev raises $1.5m. The Sydney, Australia-based online platform allows wholesale wine purchasers to manage their inventories and order directly from wine sellers. The platform includes 22,000 wines and is currently used by 700 venues. eBev aims to have 8,000 venues using the platform in the next year. The investment will be used to expand to Melbourne and other areas, as well as to expand services—including offering more wines and further developing customer relationship and payment tools.

Announced: 09/12/16 Stage: Seed Participating Institutional Investors: Sydney Angels Sidecar Fund Previous Investment: Not Disclosed Founded: September 2014

Idea Chakki Raises Undisclosed Funding. The New Delhi, India-based mobile app works with restaurants to provide digital video menus and allow customers to gift food and beverages across the world. Currently Idea Chakki operates in six restaurants, and the company aims to expand to 30 restaurants by the end of this year. The funding will be used to expand to new locations, build the team, and advance technology.

Announced: 09/12/16 Stage: Seed Participating Investors: Ratan Tata Previous Investment: Not Disclosed Founded: 2013

Salido Raises $2m. The New York, NY-based restaurant operating system lets restaurants manage workers, point of sale, inventories, and customer relations from one operating system. Having overall management of restaurants sets Salido apart from other operating systems which focus individually on single aspects of restaurant management, such as point of sale or orders. At present, Salido has processed $27 million in transactions for more than 1 million guests.

Announced: 09/08/16 Stage: Seed Participating Investors: Jean-Georges Vongerichten, Phil Suarez Previous Investment: $2.0 million Founded: 2012

GoSpotCheck Raises $16.5m. The Denver, CO-based mobile data collection app helps companies collect and analyze inventory, display and price information. The data analysis helps companies make better retail decisions, such as how best to display their products to increase business. Clients include The Dannon Company and Labatt Brewing Company. GoSpotCheck will use the funds to hire more employees and develop new app features.

Announced: 09/07/16 Stage: Series B Participating Institutional Investors: Point Nine Capital, Insight Venture Partners Previous Investment: $9.5 million Founded: June 2011

VizEat Raises $4.3m. The Paris, France-based “social dining platform” allows travelers to eat a local, home-cooked meal in a home where they are visiting. In addition to meals, some VizEat hosts also offer cooking classes and food tours. To date, VizEat has over 20000 hosts in 110 countries. The funding will be used for growth, and VizEat plans to open offices in the UK and Germany, in addition to its current offices in France, Spain, and Italy.

Announced: 09/06/16 Stage: Venture Participating Institutional Investors: Eurovestech Previous Investment: $1.3 million Founded: 2014

DayBox Raises $600k. The New Delhi, India-based platform for fresh produce sales connects farms with restaurants and retailers. At present, over 30 farms and 50 restaurants use the platform. The funding will be used to grow the team, develop technology, and to expand to Bangalore and Mumbai.

Announced: 09/01/16 Stage: Seed Participating Investors: Ashutosh Lawania, Badal Malick, Rajul Jain, Rishi Gupta Previous Investment: Not Disclosed Founded: 2016

PARTNERSHIPS

Edamam Partners with Betty Crocker, Pillsbury, Tablespoon and QueRicaVida to provide nutrition information.

Fishbowl Partners with Groupon to help restaurants measure and analyze success of Groupon campaigns.

Revel Systems Partners with Punchh to enhance restaurant customer mobile engagement.

Hershey Partners with Chef’d to make dessert meal kits.

EatStreet Partners with Pingup to allow consumers to order food directly from Yahoo and YP searches.

INDUSTRY LANDSCAPE

As the Food Tech & Media ecosystem continues to see rapid change, Rosenheim Advisors created The Food Tech & Media Industry Map to help entrepreneurs, participants and investors understand this quickly evolving landscape. Let us know about your recent or upcoming funding, partnerships or acquisitions here.

Check out the 2015 Annual Report and the Summer 2016 round-up.

The post Food Tech Media Startup Funding, M&A & Partnerships: September 2016 appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A & Partnerships: Summer 2016

Brita Rosenheim — Fri, 30 Sep 2016 16:50:32 +0000

This is a guest post written by consulting firm Rosenheim Advisors; it highlights the most interesting acquisitions, financings and partnerships within the Food Tech & Media ecosystem – digital content, social, local, mobile, grocery, e-commerce, delivery, ordering, payments, marketing and analytics – to give you insights into the latest funding and growth trends.

While there were a number of interesting deals this summer, overall activity was relatively light. The last three months brought in approximately $758 million in funding for 51 private companies across the global food tech sector, broken down into $165 million, $170 million and $423 million for June, July and August, respectively.

Year-over-year the number of funded companies during this 3-month period was down 21% while total funding dollars were down 56%. Excluding later-stage deals from the data ($100+ million), the average funding amount per deal during the three month period was ~$8 million versus ~$14 million the previous year.

There was a clear narrative around organic, clean eating and health, with half of the acquisitions in this category and a third of the funding dollars supporting the theme. Building upon that, the online grocery sector dominated the headlines this summer with a variety of cash infusions, consolidation, and rebirth. The delivery category (which includes grocery) continues to maintain momentum representing 80% of the capital and over half of the deals during the three months.

Year to date (tracking the first eight months of the year), overall M&A activity was down by about 18% versus the same period last year, a trend which was definitely reflected this summer as there were no M&A deals in July and only eleven deals in June and August (versus 21 during the same 3-month period last year).

Perhaps reflecting a shift in corporate strategy towards investment over full-on acquisition, there have been a number of strategic investments in recent months. For example, while Yelp has made five acquisitions to build out its platform, it decided to make its first and only (publicly announced) strategic investment in NoWait this summer.

Among the various global food/restaurant ordering rollups, there were a couple of geographic deals in play as Takeaway.com scooped up Just Eat’s and Netherland/Belgium operations, Foodpanda merged hellofood with Hungerstation in Saudi Arabia, and ifood was further funded by Just Eat and Movile to expand deeper into Mexico. Separately, a new acquirer in the U.S. online grocery space, Direct Eats, made two acquisitions since May, promoting speculation that it may continue to acquire smaller regional players for scale.

M&A

Direct Eats Acquires Wholeshare. The San Francisco, CA-based sustainable and organic foods online marketplace will augment Direct Eats’ customer base. While Wholeshare was able to build a strong offering and loyal customer base, the company struggled to scale. Wholeshare is the second acquisition for Direct Eats this year, as the company acquired Abe’s Market, a similar online marketplace, in May.

Announced: 08/29/16 Terms: Not Disclosed Previous Investment: $2.0m Founded: 2009

Waitr Acquires Requested. The Sacramento, CA-based restaurant booking app will provide Waitr, a Lake Charles, LA-based restaurant management system focused on delivery/takeout service, with in-restaurant dining and booking options. According to Street Fight, Requested’s key innovation is a “dynamic pricing system that allows restaurants to offer deals and negotiate directly with customers on slow day”. Waitr will incorporate these elements into its present, flat-rate restaurant delivery app. Currently, Waitr operates in over 1,000 cities, and will expand to Roseville, CA with the acquisition. In addition, Requested’s team will continue in Sacramento, while co-founder Sonny Mayugba will become Waitr’s chief marketing officer.

Announced: 08/26/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2014

Tripadvisor Acquires CityMaps. The New York, NY-based map app will allow Tripadvisor to enhance its mobile map features and deepen its location-based activities marketing. CityMaps functions as a travel guide within a real-time navigation map app where users are able to view restaurants, attractions, and events around them, and create a personalized map based on their interests. With the acquisition, CityMaps will continue as a standalone business.

Announced: 08/26/16 Terms: Not Disclosed Previous Investment: $12.0m Founded: November 2010

Hooch Acquires Tipsy. The Tempe, AZ based nightlife app offers discounted drinks and other perks to members, with over one third of their premium members being active subscribers for over a year. According to Phoenix Business Journal, in addition the userbase, Tipsy has a venue dashboard Hooch is interested in taking advantage of.

Announced: 08/25/16 Terms: Not Disclosed Previous Investment: None Founded: 2015

Cooked Chicago Acquires Chefmade. The Chicago, IL-based meal delivery services will join to offer weekly meal delivery. Both companies provide consumers with a menu from which they can select meals for the week. Deliveries are made once a week. Cooked will continue to offer Chefmade meals as menu options along with their own menu items. In addition, half of Chefmade’s team will join Cooked, and co-founder Sarah Arel will become Cooked’s director of creative growth.

Announced: 08/24/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2015

Foodpanda Acquires Hungerstation, Merges it with Hellofood. The Ad Damman, Saudi Arabia-based online platform for meal ordering and delivery will allow FoodPanda, Rocket Internet’s on-demand food delivery company, to expand its current Middle East operations (Hellofood). Foodpanda also operates two other food delivery companies in the region– 24h in the UAE, and Otlob in Egypt. Together, the combined company will reach 2000 restaurants in 30 cities. HungerStation will continue standalone operations.

Announced: 08/09/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: March 2012

Takeaway.com Acquires JustEat’s Netherlands and Belgium operations. The London, UK-based online meal ordering service has sold its Belgium and Netherlands businesses to Takeaway.com. an Amsterdam, Netherlands-based online meal delivery service. The deal was priced at €22.5 million ($25.3 million USD). Just Eat sold the businesses due to less profitability in those countries and will focus on its other operations. This comes as Takeaway.com is gearing up for an IPO in September, potentially valuing the company at over a billion dollars.

Announced: 08/02/16 Terms: $25.3m Previous Investment: $89.0m Founded: October 2000

PaidEasy Acquires Happy Any Hour. The New York–based mobile app, which helps bars and restaurants solve excess capacity through time-based, localized happy hours, was acquired by PaidEasy, a New York-based mobile payment app for restaurants. As TechCrunch reports, the new product and technology will add “an element of discovery” to the PaidEasy platform.

Announced: 08/02/16 Terms: Not Disclosed (Cash and Stock) Previous Investment: Not Disclosed Founded: November 2014

Door to Door Organics Merges with Relay Foods. The Louisville, CO-based Door to Door Organics will merge with the Charlottesville, VA-based Relay foods to create an online grocery store delivering to 63 markets in 18 states, focused on natural, organic and locally sourced products. The company will maintain offices in Louisville and Charlottesville and will continue to operate as separate, customer-facing businesses until the integration is complete; the new brand is expected to be announced later this year. The merger also includes a $10 million equity financing deal from The Arlon Group (a previous Door to Door Organics investor).

Announced: 06/08/16 Terms: Not Disclosed Previous Investment: Door to Door Organics – $38.8m; Relay Foods – $13.3m Founded: Door to Door Organics – 1997; Relay Foods – 2007

Jugnoo Acquires SabKuchFresh. The Chandigarh, India-based fresh produce delivery startup will allow Jugnoo, a Chandigarh-based ride hailing app, to expand its grocery delivery options and improve logistics, and quality of the deliveries. SabKuchFresh has a relationship with over 100 farmers and has built a network of B2B and B2C users. Earlier this year Jugnoo relaunched its hyperlocal grocery delivery business ‘Fatafat’ in a bid to strengthen and diversify its delivery business. Jugnoo plans to expand delivery to Guragon in the next month and 30 other cities in the next year.

Announced: 06/01/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2013

Direct Eats Acquires Abe’s Market. The Chicago-based natural foods marketplace will expand the brand offering and userbase for relative newcomer Direct Eats, which is focused on building a leading ecommerce venture featuring better-for-you products in both the food and health and beauty categories. Abe’s Market will be rebranded as Direct Eats, moving the new website and platform. In contrast to competitor Thrive Market, Direct Eats does not charge shipping and does not require a membership fee.

Announced: 05/18/16 Terms: Not Disclosed Previous Investment: $19.1 million Founded: 2009

FUNDING

FoodByUs Raises $2m. The Sydney, Australia-based online platform allows users to buy and sell local, homemade foods. Home cooks can apply to be makers on the platform, which allows them to sell their food products with business and ecommerce support from FoodByUs. Consumers can view items listed by makers on the platform and place orders, which can be picked up or delivered. Since launching in August, the company has 80 makers offering 500 meals. FoodByUs will use the funds for marketing and sales. The company also plans to expand to other cities in Australia.

Announced: 08/31/16 Stage: Venture Participating Institutional Investors: Kadima Group Previous Investment: Not Disclosed Founded: February 2016

Velocity Raises $22.5m. The London, UK-based digital restaurant booking and payment platform is focused on premium restaurants worldwide. The app can also be used for payment at the restaurants. Velocity currently operates in London, New York, Miami, Los Angeles, and San Francisco. The company has made three acquisitions thus far and plans to use the investment to expand to 29 cities by 2020.

Announced: 08/29/16 Stage: Series B Participating Institutional Investors: DIG Investments (lead) Previous Investment: $16.4 million Founded: April 2014

Runnr Raises $7m. The Bangalore, India-based online delivery platform allows consumers to order restaurant meals for on-demand delivery. The company is the merged product of Roadrunnr and TinyOwl. Runnr currently operates in Bangalore and Mumbai, with plans to open in Delhi.

Announced: 08/29/16 Stage: Series A Participating Institutional Investors: Blume Ventures, Nexus Venture Partners Previous Investment: Not Disclosed (formed via merger) Founded: February 2015

HappyFresh Raises Undisclosed Funding. The Jakarta Pusat, Indonesia-based online grocery store allows consumers to order groceries for on-demand, under an hour delivery. HappyFresh shoppers shop and make deliveries, while consumers can track the status of their delivery from the HappyFresh app. HappyFresh has closed its operations in Taiwan and the Philippines, but continues to operate in Indonesia, Malaysia, and Thailand. The funding amount remains undisclosed, but is larger than HappyFresh’s $12 million Series A funding round from last year.

Announced: 08/29/16 Stage: Series B Participating Institutional Investors: Samena Capital (lead), Sinar Mas Digital Ventures, Vertex Ventures Previous Investment: $12.0 million Founded: October 2014

Vivanda Raises Undisclosed Funding. The Baltimore, MD-based technology company, which was founded by group of McCormick employees and partners then spun out in 2014, uses FlavorPrint technology to create personalized flavor profiles based on a person’s preferences for different tastes, flavors, and textures. Companies can use the technology to understand consumers’ preferences and create personalized web content based on their preferences. Customers such as Serious Eats already use the platform to help analyze recipes. Notably, this strategic investment comes from software multinational SAP, which states the investment will “further enable food companies using solutions enabled by SAP HANA to leverage the FlavorPrint technology and data collected to engage and connect with consumers in more personalized and relevant ways”. Vivanda will use the investment for growth, including hiring, and aims to double its customers in the next 6 months.

Announced: 08/26/16 Stage: Seed Participating Institutional Investors: SAP Previous Investment: Not Disclosed (Spun out of McCormick) Founded: December 2014

Prepd Raises $2.78m. The San Francisco, CA-based company launched a successful Kickstarter campaign to create a lunchbox and mobile app pair which helps consumers eat healthily and track calorie and nutrient intake. Users prepare recipes from the app, which are designed to fit perfectly in the lunchbox. They can then use the app to record their exact intake and use their compiled personal data points to manage their health and weight.

Announced: 08/24/16 Stage: Crowdfunding Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2016

Zzungry Raises Undisclosed Funding. The Bangalore, India-based online restaurant allows consumers to order chef-made Indian food for on-demand delivery. Zzungry operates out of 6 kitchens in Bangalore and changes its menu offerings weekly. At present, Zzungry delivers over 150 orders per day. The investment will be used for expansion and new kitchens, building revenue channels, and marketing.

Announced: 08/22/16 Stage: Seed Participating Institutional Investors: Madhusudhan Jujare, Satish Vasudeva Previous Investment: Not Disclosed Founded: August 2015

Sample6 Raises $12.7m. The Cambridge, MA-based synthetic biology company uses its technology to detect unwanted and harmful bacteria in food. Their Listeria detector uses light and an illumination box to reveal contaminated bioparticles in food products. The detectors are simple to use and fast-detecting, with results in 6 hours. The investment will be used to expand technology to include detection of Salmonella and E coli. In addition, with the investment, Acre Venture partner Sam Kass will join the Sample6 board of directors.

Announced: 08/22/16 Stage: Series C Participating Institutional Investors: Acre Venture Partners (lead), Cultivian Sandbox Ventures, Canaan Partners, Valley Oak Investments Previous Investment: $14.8 million Founded: March 2013

Announced: 08/18/16 Stage: Seed Participating Institutional Investors: Andy Murray Previous Investment: Not Disclosed Founded: January 2014

Zero Cater Raises $4.1m. The San Francisco, CA-based catering service deliver meals to office employee groups. Meals can be ordered from local chefs, restaurants, and food trucks. ZeroCater currently operates in the San Francisco Bay Area, New York City, Chicago, Washington, DC, and Austin, serving over 1,000 companies tens of thousands of meals each day. The funding will be used to expand product and engineering teams.

Announced: 08/17/16 Stage: Series A Participating Institutional Investors: Romulus Capital (lead), Struck Capital Previous Investment: $1.5 million Founded: 2009

Glovo Raises $5.6m. The Barcelona, Spain-based mobile app operates similarly to Postmates and Jinn. Consumers can use the app to order any item available in their city for on-demand delivery in under one hour. Users can place their order, track the status of their order, and rate service following delivery. Glovo currently has over 300 partners and 200,000 users. The investment will be used to consolidate the company’s presence in Spain.

Announced: 08/11/16 Stage: Series A Participating Institutional Investors: Caixa Capital Risc, Bonsai Venture Capital SCR, Entrée Capital, Seaya Ventures, Antai Venture Builder Previous Investment: $2.3 million Founded: March 2015

Nowait Raises $8m. The Pittsburgh, PA-based mobile app allows users to get in line at restaurants before arriving. Users can view wait times and join waitlists from the app; the app notifies them when their table is ready. Nowait operates in 4,000 restaurants in all 50 US States. The strategic investment from Yelp will expand Yelp’s restaurant platform capabilities and make Nowait reservations available directly from restaurants’ Yelp pages.

Announced: 08/11/16 Stage: Growth Participating Institutional Investors: Yelp Previous Investment: $14.0 million Founded: 2010

9KaCha Raises $10m. The China-based mobile app uses label recognition to provide users with information about their wine. Users take a picture of their wine bottle’s label, upload it on the app, and then receive information. The investment from Haier will incorporate 9KaCha’s recognition technology into Haier’s new smart wine cabinet. The cabinet will adapt conditions to the type of wine being stored.

Announced: 08/11/16 Stage: Series A Participating Institutional Investors: Haier Previous Investment: $1.8 million Founded: 2012

Fruitday Raises $15m. The Shanghai, China-based ecommerce company for produce offers imported fruit for purchase. The company has visions of becoming a broader ecommerce platform for fresh food, and as such, according to Produce Report, in addition to the funding announcement, the company Fruitday declared that it would form a strategic cooperation with Lactalis, which is one of the biggest dairy companies in the world.

Announced: 08/09/16 Stage: Series D Participating Institutional Investors: Zhangjiang Hi-Tech Park Fund Previous Investment: $80 -$100 million Founded: 2009

Deliveroo Raises $275m. The London, UK-based meal delivery service allows consumers to order meals from restaurants for on-demand delivery. Deliveroo currently operates in 12 countries in Europe, Asia, and the Middle East. Its competitors include UberEats, Just Eat, and Delivery Hero. The company will use the investment for expansion and new services, such as alcohol delivery and RooBox—a service that provides delivery-only kitchens for restaurants.

Announced: 08/05/16 Valuation: Over $1 billion Stage: Series E Participating Institutional Investors: Bridgepoint (lead), DST Global (lead), General Catalyst Partners (lead), Felix Capital, Greenoaks Capital, Nokia Growth Partners Previous Investment: $199.6 million Founded: February 2013

GrubMarket Raises $20m. The Newark, CA-based online farmers market allows consumers to order organic, fresh food for delivery. GrubMarket offers meats, fish, and produce directly from farmers. Bulk ordering is also available for offices and restaurants. The investment will be used for marketing and expansion.

Announced: 08/04/16 Stage: Series B Participating Institutional Investors: FJ Labs, Great Oaks Venture Capital, Riverhead Capital, Danhua Capital, GGV Capital, Global Founders Capital, Sound Ventures Previous Investment: $12.1 million Founded: February 2014

Drizly Raises $15m. The Boston, MA-based platform for alcohol delivery allows consumers to order beer, wine, and spirits for on-demand delivery. Consumers can also place orders with up to 48 hours for delivery by using Drizly Connect, which launched this summer. Drizly currently operates in 23 cities and has plans to expand to 30 by the end of this year. The funding will be used for marketing and to expand the team. In August it was also noted that spirits producer Diageo indirectly invested in Drizzly’s round last year via First Beverage Group.

Announced: 08/04/16 Stage: Series B Participating Institutional Investors: Polaris Partners Previous Investment: $17.8 million Founded: July 2012

City Pantry Raises $1.46m. The London, UK-based catering platform allows users to order food for office groups, events, and meetings. Users can choose from two offerings—a one-time event order or a subscription meal plan for recurring events. Food can be ordered from chefs, restaurants, and street vendors, and is delivered by City Pantry. The investment will be used for expansion in the UK and Europe.

Announced: 08/03/16 Stage: Seed Participating Institutional Investors: Angel CoFund, London Co-Investment Fund Previous Investment: Not Disclosed Founded: April 2013

Petoo Raises $500k. The Bangalore, India-based online restaurant delivers prepackaged Indian meals to consumers. The company also does food research to explore their food’s freshness and create methods for keeping food fresh without refrigeration or preservatives. Their food offerings include breakfast foods that stay fresh for 1 month, lunch and dinner products fresh for 3 months, and desserts fresh for 6 months. Petoo will use the funding for food research and implementing its new products.

Announced: 08/03/16 Stage: Seed Participating Institutional Investors: LetsVenture Previous Investment: $1.0 million Founded: 2015

Peek Raises $10m. The San Francisco, CA-based online platform allows users to find and book local tastings, activities and tours. The mobile-first platform features listings, reviews, and booking functionality for consumers, as well as Peek Pro, to help tour operators manage their business online and via mobile. The investment will be used to grow the company and team and to increase partnerships. In addition to the funding, Peek will partner with Yelp, so that companies can have consumers book directly from their Yelp pages.

Announced: 07/28/16 Stage: Series A Participating Investors: Pete Flint, David Bonderman, Ray Lane, Gigi Pritzker, Michael Pucker, Eric Schmidt, Jack Dorsey, Carl Sparks Previous Investment: $6.9 million Founded: 2012

Shipt raises $20m. The Birmingham, AL-based online grocery delivery service provides on-demand delivery in under 1 hour. Customers purchase a Shipt membership which allows them to place orders online or through a mobile app. Shipt currently operates in 27 cities in the southern United States, including cities in Florida, Alabama, Texas, North Carolina, South Carolina, Tennessee, Arizona, and Ohio. Shipt will use the funds to expand, develop grocery partnerships, and add alcohol delivery to its offerings.

Announced: 07/27/16 Stage: Series A Participating Institutional Investors: Greycroft Partners, e.ventures, Harbert Growth Partners Previous Investment: $5.2 million Founded: 2014

Good Eggs Raises $15m. The San Francisco, CA-based online grocery delivery service delivers organic and local meats, dairy products, and produce to consumers. After having to shut down out of state operations and fire 140 employees late last year, Good Eggs has found a second life, currently operating solely in the San Francisco region. The investment will be used to expand Good Eggs in the Bay Area and subsequently expand again throughout the United States.

Announced: 07/27/16 Stage: Series C Participating Institutional Investors: Index Ventures (lead), Obvious Ventures, S2G Ventures Previous Investment: $31.5 million Founded: July 2011

Sun Basket Raises $15m. The San Francisco, CA-based healthy meal kit delivery service offers organic meal kits with options for paleo and gluten-free diets. Kits come with simple recipes and ingredients that have been pre-portioned according to the recipe. Sun Basket aims to make organic products more accessible for consumers. The company currently serves 34 US states. They will use the investment to open a third distribution center, which will allow the company to reach 98% of the US—“more zip codes than the largest grocery store chain in the US.”

Announced: 07/26/16 Stage: Series B Participating Institutional Investors: Accolade partners (lead), Baseline Ventures, Founders Circle Capital, PivotNorth Capital, Relevance Capital, Shea Ventures, Vulcan Capital Previous Investment: $11.6 million Founded: April 2014

Innit Raises $18m. The Redwood City, CA-based connected kitchen platform uses technology, nutrition, and food science to make cooking easier. Innit smart kitchen products identify and measure food ingredients and suggests recipes and cooking techniques. The investment will be used to accelerate growth. The company recently announced partnerships with Good Housekeeping, Pirch and Whirlpool Corporation to enable advanced automated cooking on their kitchen appliances.

Announced: 07/21/16 Stage: Venture Participating Institutional Investors: Not Disclosed Previous Investment: $25.0 million Founded: September 2013

iFood Raises $30m. The Sao Paulo, Brazil-based online platform for food delivery allows consumers to order restaurant food for on-demand delivery. Users can place orders online or via mobile app. At present, iFood makes about 1.7 million deliveries per month. The ongoing strategic investment from Movile and Just Eat will help iFood expand into Mexico through SinDelantal, the largest food delivery service in Mexico, which was acquired by Just Eat in February. As the press release notes, iFood recently acquired Hellofood Brazil from JUST EAT and also acquired US-based SpoonRocket‘s technology, with plans to harness its logistics backend to optimize delivery time and enhance the restaurant-to-consumer experience.

Announced: 07/20/16 Stage: Series F Participating Institutional Investors: Movile, Just Eat Previous Investment: $61.9 million Founded: May 2011

Kiip Raises $12m. The San Francisco-based mobile rewards network, platform and app works with brands such as McDonalds and Pepsi to engage their audiences by rewarding them with free samples, special offers, virtual currency and other items during in-app events called “moments”. The company will use the funding to expand its sales and marketing efforts.

Announced: 07/19/16 Stage: Series C Participating Institutional Investors: North Atlantic Capital (lead), U.S. Cellular Previous Investment: $20.0 million Founded: July 2010

Zuppler Raises $300k. The Conshohocken, PA-based software producer provides software for restaurants that can be used to manage ordering and delivery. Currently, Zuppler’s software is used by over 1600 restaurants in the United States, Canada, Ireland, and the UK. The investment will be used to further develop its technology, point of sale and loyalty integrations, sales and marketing initiatives.

Announced: 07/18/16 Stage: Seed Participating Institutional Investors: SRI Capital Previous Investment: $1.6 million Founded: November 2008

LifeSum Raises $10m. The Stockholm-based digital health startup tracks what users eat as well as their exercise. The company has 15 million users and according to TechCrunch, is seeking partnerships with organizations in other sectors, including food, fitness, healthcare, DNA and pharmaceuticals. The company will use the funds to build out the team and product development as it expands in Europe and the United States.

Announced: 07/18/16 Stage: Series B Participating Institutional Investors: Nokia Growth Partners (lead), Bauer Media, Draper Esprit, SparkLabs Global Ventures Previous Investment: $6.7 million Founded: November 2008

Benchmark Intelligence Raises $500k. The Fresno, CA-based restaurant analytics startup aids restaurant and retail chain owners in understanding why certain locations perform better than others. According to Fresno Business Journal, Benchmark Intelligence collects data from three main sources — voice-of-the-customer SMS text messaging surveys, social media reviews and field study audits. The company will use the funds to build out the team.

Announced: 07/15/16 Stage: Seed Participating Institutional Investors: San Joaquin Capital Previous Investment: $70k Founded: August 2014

Twigly Raises $600K. The Guragon, India-based online meal delivery service allows consumers to order fresh meals for on-demand delivery. The menu is updated weekly and all meals are prepared at Twigly’s own central kitchens. Presently, Twigly operates 2 kitchens in Guragon and delivers 150 orders per day. With the investment, the company plans to expand to Delhi and Bangalore and deliver 1000 orders per day.

Announced: 07/13/16 Stage: Seed Participating Investors: Tracxn labs (lead), Gaurav Bhalotia, Hyderabad Angels, Kunal Shah Previous Investment: $0.2 million Founded: August 2015

Jumbotail Raises $2m. The Bangalore, India-based online food and groceries marketplace provides a platform for wholesalers to sell their products and services online. According to Deal Street Asia, Jumbotail works with wholesalers in India using technology, data science and design and employs approximately 50 people.

Announced: 07/13/16 Stage: Seed Participating Institutional Investors: Nexus Venture Partners Previous Investment: Not Disclosed Founded: November 2015

Freshly Raises $21m. The New York, NY–based meal delivery service provides fully prepared healthy meals. Users create a weekly subscription and select meals from Freshly’s menu options. All meals are delivered at the start of the week ready to be reheated. Freshly currently delivers 250,000 meals per month to consumers in 28 states. The funding will be used to expand to all 50 U.S. states and to agressively grow its technology team.

Announced: 07/12/16 Stage: Series B Participating Institutional Investors: Insight Venture Partners (lead), Highland Capital Partners, Slow Ventures, White Star Capital Previous Investment: $9.0 million Founded: January 2012

Holachef Raises $1.95m. The Mumbai, India-based mobile and web app allows users to order chef-cooked meals for on-demand delivery. Holachef’s menu is changed daily, offering about 50 choices each day. Currently, the company delivers 100,000 orders per month.

Announced: 07/08/16 Stage: Venture Participating Institutional Investors: Kalaari Capital (Lead), India Quotient Previous Investment: $3.4 million Founded: 2014

Quickli Raises Bridge Funding. The Guragon, India-based mobile app allows consumers to place orders for delivery. Users can order food, groceries, and healthcare/pharmaceutical products. All orders are delivered on the same day they are placed. Quickli currently operates in Delhi and fills 2000 orders per day. The company will use the funding to expand to new locations, including Bangalore.

Announced: 07/07/16 Stage: Venture Participating Institutional Investors: 500 Startups, AVG Group Previous Investment: Not Disclosed Founded: April 2015

BevSpot Raises $11m. The Boston, MA-based mobile platform allows businesses to easily manage liquor and alcohol sales and inventory. BevSpot is currently used by over 400 companies in over 40 of the United States. These include restaurants, bars, nightclubs and hotels. The investment will be used for product development and expansion.

Announced: 07/07/16 Stage: Series B Participating Institutional Investors: Bain Capital Ventures Previous Investment: $6.1 million Founded: March 2014

Cookoo Raises $300k. The London, England-based meal delivery service offers healthy, home-cooked meals for delivery. All meals come ready-to-eat and microwave re-heatable. The investment will be used to add more cooks and expand Cookoo’s offerings.

Announced: 07/05/16 Stage: Seed Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2016

Grab Raises $2m in Debt Financing. The Mumbai, India-based logistics services platform provides delivery services for restaurants, food tech platforms, groceries, ecommerce platforms, and banks. To date, Grab has made over 5 million deliveries for over 12 thousand merchants in 10 cities. The funds will be used to further develop its technology and roll out additional service verticals.

Announced: 07/04/16 Stage: Debt Financing Strategic Investor: Aramex Ventures Previous Investment: $1.0 million Founded: 2012

ProducePay Raises $2.5m. The Los Angeles, CA-based online platform for payment solutions connects farmers with cash flow earlier in the farming and distributing process than other payment methods. Instead of having to wait for produce to be distributed and sold to receive payment, farmers are able to receive payment the day after produce is shipped. To date, ProducePay has financed $80 million of produce from farmers in the United States, Mexico, Chile, and Honduras.

Announced: 06/29/16 Stage: Seed Participating Institutional Investors: Menlo Ventures, Arena Ventures, CoVentures, Red Bear Angels, Social Leverage Previous Investment: $1.4 million Founded: December 2014

Ancera Raises $8.9m. The Branford, CT-based food safety technology company develops hardware and software to test food for contaminants such as salmonella and e.coli. Ancera’s product Piper is a small instrument that can detect salmonella a food sample within 1 to 8 hours. This contrasts with tradition testing methods which can take up to 5 days. The funds will be used for hiring, commercial production and distribution of products, and for research to create products to detect other food contaminants like e.coli.

Announced: 06/28/16 Stage: Series A Participating Institutional Investors: Glass Capital Management (lead), Bulldog Innovation Group, Metabiota, Packers Sanitation Service Previous Investment: $1.3 million Founded: 2012

Farm Hill Raises $3m. The Redwood City, CA-based meal delivery service provides healthy meals to companies and office workers. Customers can order individually or as an office group, with a lower delivery payment rate for group orders. Farm Hill makes and distributes all of its meals, and includes options for all diets (including paleo, vegetarian, vegan options). Farm Hill currently operates in Silicon Valley. The investment will be used for expansion to San Francisco, as well as for new technology to make delivery and kitchen operations more efficient.

Announced: 06/27/16 Stage: Venture Participating Investors: Eagle Cliff Partners, Liberty City Ventures, Soma Capital, StartX, Zalmi Duchman Previous Investment: $1.0 million Founded: June 2013

Thrive Market Raises $111m. The Los Angeles, CA-based online organic grocery store offers wholesale organic foods. Users pay an annual membership fee to purchase from Thrive, while the company offers a free membership to a low-income family for each paid membership on the site. The company plans to use the funding for growth—expanding infrastructure, marketing, and creating new written and video content.

Announced: 06/27/16 Stage: Venture Participating Institutional Investors: Invus, Cross Culture Ventures, e.ventures, Greycroft Partners Previous Investment: $58.0 million Founded: 2013

FareWell Raises $8.5m. The San Francisco, CA-based online program for lifestyle and diet intervention seeks to help people with elevated body mass indexes or chronic weight-related diseases. The 16-week program includes a diet program with video tutorials, meal plans, shopping lists, and plant-based recipes. In addition, participants have access to health coaches, physicians, chefs, behavioral psychologists, and dieticians through the program. The funds will be used to launch the pilot program.

Announced: 06/23/16 Stage: Venture Participating Investors: David Perry Previous Investment: Not Disclosed Founded: May 2015

Eunoia Raises $800k. The Singapore-based restaurant tech platform, Ordr, allows food and beverage businesses to view information from 3^rd party apps for menus, ordering, and payment in one consolidated layout. The restaurant can easily process orders and update and sync menus. The technology serves both to combat labor shortage in Singapore with the use of automation and to make serving customers more efficient, mobile-friendly, and profitable.

Announced: 06/17/16 Stage: Seed Participating Institutional Investors: Golden Equator Capital Previous Investment: Not Disclosed Founded: 2015

CaterWings Raises $6.7m. The London, England-based online catering platform connects businesses with caterers. CaterWings currently operates in Amsterdam, Berlin, Hamburg, London, and Munich. The investment will be used to expand to additional cities in Europe as well as to expand CaterWings’ online presence and improve customer service.

Announced: 06/16/16 Stage: Venture Participating Institutional Investors: Tengelmann Ventures, Rocket Internet, HV Holtzbrinck Ventures Previous Investment: Not Disclosed Founded: 2015

Qloo Raises $4.5m. The New York, NY-based local and cultural discovery platform provides users with recommendations based on their personal preferences. Recommendations encompass 8 categories, including: dining, nightlife, fashion, books, music, film, television, and travel. The investment will be used to increase Qloo’s database and add clients.

Announced: 06/15/16 Stage: Series A Participating Investors: Barry Sternlicht, Adriaan Ligtenberg, Leonardo DiCaprio, Pierre Lagrange Previous Investment: $3.0 million Founded: April 2011

Ava Raises $3m. The Boston, MA-based mobile nutrition coach app allows consumers to track food consumption and receive personalized nutritional feedback. Users take a picture of the food they eat and text it to Ava to receive health information. Caloric value is calculated using image recognition software. The investment will be used to develop technology and expand Ava’s nutrition science team.

Announced: 06/14/16 Stage: Seed Participating Institutional Investors: DCM Ventures (lead), Innovation Endeavors, Khosla Ventures Previous Investment: Not Disclosed Founded: 2016

Khanagadi Raises Undisclosed Funding. The Jaipur, India-based mobile app allows train commuters to order food for on-train delivery. Khanagadi currently operates in 200 railway stations in India, and serves 100 to 150 orders per day. Khanagadi will use the funding for expansion, marketing, and hiring.

Announced: 06/11/16 Stage: Seed Participating Institutional Investors: 50KVentures Previous Investment: Not Disclosed Founded: 2015

Door to Door Organics / Relay Foods Raises $10m. In connection with the merger, the combined company received additional funding from Door to Door Organic’s previous investor, The Arlon Group.

Announced: 06/08/16 Stage: Growth Participating Institutional Investor: The Arlon Group

Ordermentum Raises $2.5m. The Sydney, Australia-based B2B order management platform allows food and beverage retailers to manage and place orders with suppliers. Suppliers can also use the platform to receive and manage orders and payment. Currently, Ordermentum is used by over 3000 businesses in Australia. The investment will be used to grow the company.

Announced: 06/07/16 Stage: Series A Participating Institutional Investors: Capital Markets Technologies Previous Investment: Not Disclosed Founded: July 2014

SevenFifty Raises $8.5m. The New York City-based online wholesale platform for alcohol distributors is focused on modernizing and streamlining the wholesale alcohol supply chain by connecting the beverage alcohol industry with a platform that helps distributors and buyers interact.

Announced: 06/01/16 Stage: Series A Participating Institutional Investors: Formation 8, Pritzker Group Venture Capital Previous Investment: Not Disclosed Founded: 2012

WISErg Raises $4m. The Issaquah, WA-based technology producer provides restaurants and grocery stores with a simple, sustainable method to recycle food scraps. WISErg’s Harvester machine uses collected scraps of food to make a liquid fertilizer for agricultural farmers. In addition to creating fertilizer, the machine collects and reports data on what foods are thrown away that stores can use to manage their products. The funds will be used to scale operations on the west coast.

Announced: 06/01/16 Stage: Series B Participating Institutional Investors: Not Disclosed Previous Investment: $44.6 million Founded: September 2009

PARTNERSHIPS

Ibotta Partners with Button, Jet, and Doordash to offer in-app purchases.

Toast Partners With Chowly to integrate online ordering systems with restaurant point of sale systems.

Square Partners with TouchBistro and Vend to increase payment and point of sale options for restaurants.

Olo Partners with Conversable to offer online ordering through messaging apps.

Yelp Partners with Nowait (and invests $8m) to add restaurant wait times and waitlists to its offerings.

Square Partners with Upserve to offer loans to small businesses in the restaurant industry.

TouchBistro Partners with 7Shifts to simplify restaurant employee scheduling and management.

Google India Partners with Zomato and Swiggy to allow consumers to order from restaurants directly from their Google search or app.

Instacart Partners with Food Network to deliver groceries and recipe ingredients.

Publix Partners With Instacart to deliver groceries in Miami.

PlateJoy Partners with Instacart to make recipe ingredients available via delivery.

Sprouts Farmers Markets Partners with Amazon Prime to deliver fresh groceries in under one hour.

Marley Spoon Partners with Martha Stewart to deliver meal kits with ingredients and directions for Martha Stewart’s recipes.

RedBrick Partners with Monj to provide information about food and behavioral change for people with prediabetes and chronic conditions.

HookLogic Partners with Instacart, Fresh Direct, and Drugstore.com to increase digital sales and marketing of consumer packaged goods.

Uber Partners with Foursquare to allow users to find locations by name instead of street address.

Retail Control Systems Partners With Toast to provide an all-in-one software for a restaurant management and point-of-sale system.

Chowly and Revel Systems Partner to connect online restaurant orders with restaurant point-of-sale systems.

foodjunky.com Partners with Yelp to provide online ordering and delivery directly from Yelp pages.

Monsanto Partners with Microsoft to fund agricultural technology development in Brazil.

Stuart Partners with Just Eat to offer on-demand delivery services and drivers to restaurants.

Alibaba Partners with Menusifu to begin use of mobile payment app Alipay in the United States.

Zomato Partners with Helpchat to offer in-app online food ordering.

Peek Partners with Yelp to offer booking directly through Yelp platform.

Cisco Partners with H-FARM to launch a food tech accelerator.

INDUSTRY LAANDSCAPE

Check out the 2015 Annual Report and May’s round-up.

The post Food Tech Media Startup Funding, M&A & Partnerships: Summer 2016 appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A and Partnerships: May 2016

Brita Rosenheim — Mon, 11 Jul 2016 15:41:38 +0000

This is a monthly guest post, written by consulting firm Rosenheim Advisors, it highlights the most interesting acquisitions, financings and partnerships within the Food Tech & Media ecosystem – digital content, social, local, mobile, grocery, e-commerce, delivery, ordering, payments, marketing and analytics – to give you insights into the latest funding and growth trends.

Deal volume in May was in line with recent months, with six acquisitions and fifteen fundings, however deal sizes were significantly smaller as the total reported influx into the foodtech sector was just $155 million. In contrast to recent months where larger and later stage rounds represented a least a quarter of fundings, May was filled with a majority of Seed and Series A rounds and featured just one raise over $20 million.

Commerce and delivery were prominent sectors, with restaurant-related technology well-represented among the companies. Close to sixty percent of the capital went to U.S.-based companies, as was the largest acquisition (LAbite’s sale to Grubhub) a U.S.-based deal.

Most international activity was driven by Western Europe which is unusual, and surprisingly there was no activity in China aside from a distressed exit. Given the light representation in May, the surge in shuttering Indian foodtech startups appears to have quelled the funding gold rush (there was only one meaningful fundraise during the month within India).

M&A

Jialebao Acquires Yummly77. The Shanghai, China-based online grocery store sold fresh produce online for delivery and had received a Series B investment of $20 million from Amazon in 2014, but in April 2016, Yummy77.com suspended its operations due to its dire financial situation. The strategic assets will provide Jialebao, a Shanghai, China-based ecommerce group, with a strong brand and consumer base in addition to logistics, storage systems, and operations. With the acquisition, Jialebao aims to become a frontrunner in the market for fresh produce.

Announced: 05/12/16 Terms: Not Disclosed Previous Investment: $20.0m Founded: February 2013

Byte Foods Acquires Pantry. The San Francisco, CA-based smart fridge kiosk will allow the San Rafael, CA-based provider of vending machines and meal delivery for businesses to expand their healthy food options in workplaces. To use a Pantry fridge, customers swipe their credit card to open the fridge and then take whichever item(s) they want. The fridge uses Radio Frequency ID to determine what has been removed and charge the customer.

Announced: 05/12/16 Terms: Not Disclosed Previous Investment: $2.3m Founded: December 2012

ShopWings Merges with Grocery Butler. Grocery Butler, the Australia-based online grocery store and ShopWings, Rocket Internet’s online grocery platform will perform a merger of equals and combine operations under the name ShopWings. By merging, the companies will gain advances in technology and logistics as well as an increased client base. Members of both teams will remain with the merged company—Guillaume Ang, the current COO of ShopWings will become the CEO of the merged company, and Michael Parthenides, the current CEO of Grocery Butler will lead operations in Melbourne. ShopWings will operate in Sydney, Brisbane, and Melbourne. ShopWings originally launched in Germany, however due to lack of demand and cooperation from local retailers, shut German operations in July 2015.

Announced: 05/12/16 Terms: Not Disclosed Previous Investment: Shopwings: €12.0m; Grocery Butler: $0.3m Founded: ShopWings: 2014; Grocery Butler: July 2013

Roadrunnr Acquires TinyOwl. The Mumbai, India-based mobile app for food delivery will provide the Kormangala, India-based delivery service with technology and data analytics as well as some team members of TinyOwl. For now, TinyOwl will continue operations in only 20 of its Mumbai locations, shutting down elsewhere, and will begin the transition to the merged company, which will be called Runnr when it launches.

Announced: 05/10/16 Terms: Not Disclosed Previous Investment: $26.7m Founded: 2012

Upserve Acquires Breadcrumb from Groupon. The New York, NY-based iPad point-of-sale app for restaurants will enhance Upserve’s (previously called Swipely) smart management assistant for restaurants’ point-of-sale technology. Upserve’s current technology connects point-of-sale, reservations, reviews, and payments for restaurants so that they can monitor staff, guest, and review information from one place. Breadcrumb was previously acquired by Groupon in May 2012 (reportedly for $10-$15 million), but has worked in partnership with Upserve since late 2015.

Announced: 05/09/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2011

GrubHub Acquires LAbite. The Los Angeles, CA-based restaurant delivery service will allow the Chicago, IL-based mobile app for restaurant delivery to expand its delivery network. LAbite diners ordered almost $80 million in gross food sales, with most of the volume coming from the greater Los Angeles area. LAbite previously acquired WaitersonWheels (San Francisco Bay Area) and EatOutIn (Austin, Houston, and San Antonio) in 2015. GrubHub currently works with over 44,000 restaurants in over 1,000 cities in the United States and London.

Announced: 05/03/16 Terms: $65.0m (cash) Previous Investment: Not Disclosed Founded: 2001

FUNDING

Hooch Raises $950k. The New York, NY-based mobile app for a subscription-based program to receive cocktails at bars provides consumers with a free round of drinks each day at cocktail bars. Membership costs $9.99/month or $99/year and includes specially curated drinks menus at restaurants and bars. Hooch currently operates in New York City, Los Angeles, Austin, Dallas and Miami. The investment will be used to expand the company in the United States and internationally.

Announced: 05/31/16 Stage: Seed Participating Institutional Investors: Blue Scorpion Investments Previous Investment: $1.25 million Founded: November 2014

Nestor Raises $1m. The Paris, France-based meal delivery service delivers lunches to companies and working professionals. The company offers a starter, entrée, and dessert for €15, and everything is cooked by professional chefs at Nestor. Currently, Nestor delivers 1000 meals per week and is growing by 15% each week. The funds will be used for continued expansion in Paris.

Announced: 05/30/16 Stage: Seed Participating Institutional Investors: Anaxago, TheFamily Previous Investment: Not Disclosed Founded: 2015

Chef’d Raises $12.27m. The El Segundo, CA-based meal and recipe kit delivery service offers over 200 recipes for consumers to choose from, and recently partnered with the NY Times. Customers select meals and kits with recipes and prepared ingredients are delivered to their homes within 48 hours. The investment will be used for expansion.

Announced: 05/17/16 Stage: Series A Participating Institutional Investors: Not Disclosed Previous Investment: $5.2 million Founded: 2013

7Shifts Raises $900k. The Saskatoon, Canada-based software producer provides restaurants with a platform for employee scheduling. Managers can use an app to evaluate and assign shifts to employees and employees can view their shifts and submit requests to managers. Currently, 7Shifts is used by over 1900 restaurants in North America, Scandinavia, the Middle East, and Australia. 7Shifts plans to use the investment to expand their sales team and to add new features to their app.

Announced: 05/26/16 Stage: Seed Participating Institutional Investors: Relay Ventures (lead), Boost VC, Globalive Capital Previous Investment: Not Disclosed Founded: 2013

ResQ Raises $446k. The Helsinki, Finland-based meal club “rescues” leftover food from restaurants and bakeries that would otherwise be thrown away or not consumed. Customers can buy these foods for 40-70% discounted prices. Currently, ResQ has over 17,000 customers and over 150 provider partners. With the funding, ResQ has announced its expansion to 3 locations in Sweden.

Announced: 05/25/16 Stage: Seed Participating Institutional Investors: Cleantech Invest Oyj Previous Investment: Not Disclosed Founded: 2016

Menu Next Door Raises $2m. The Brussels, Belgium-based platform for home-cooked meals connects local home-cooks with community members who wish to purchase a home-cooked meal, like an “AirBnB for food”. Customers can place a menu order a few days in advance and then pick up their meal from the cook’s home on the day of their order—the company has no delivery option. Menu Next Door currently operates in Brussels and Paris. To date, there are 900 cooks and 110,000 customers using Menu Next Door. With the investment, the company will expand to London.

Announced: 05/24/16 Stage: Seed Participating Institutional Investors: TheFamily, Kima Ventures, LocalGlobe, Index Ventures Previous Investment: Not Disclosed Founded: 2015

Eatonomist Raises Seed Funding. The Guragon, India-based meal delivery service delivers sandwiches, desserts, and Indian foods to offices. Food preparation and delivery are both controlled by Eatonomist, and all meals produced by the company are “calorie-counted gourmet meals”. The company will use the investment to develop and launch their app.

Announced: 05/23/16 Stage: Seed Participating Institutional Investors: MCube Capital Advisors Previous Investment: Not Disclosed Founded: November 2014

Instabuggy Raises Undisclosed Funds. The Toronto, Canada-based grocery delivery service delivers groceries to consumers in under 1 hour following their order. Customers can pick which items they would like to buy and which stores they are interested in purchasing from. In addition, Instabuggy also delivers meals prepared by in-store chefs. The company plans to expand to the United States within the next year.

Announced: 05/20/16 Stage: Series A Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: October 2014

6SensorLabs Raises $9.2m. The San Francisco, CA-based technology company produces portable food sensors that can test food for allergens such as gluten, nuts, and milk. The first sensor tester, Nima, tests food for gluten content. Users put a small piece of their food into a disposable capsule and put the capsule inside the sensor. The sensor then displays results of the test. Funds will be used to further develop and sell sensors to detect peanut and milk content. The company will also change its name to Nima, the name of its first sensor.

Announced: 05/19/16 Stage: Series A Participating Institutional Investors: Foundry Group (lead), Lemnos Labs, SK Ventures, SoftTech VC, Upfront Ventures Previous Investment: $4.0 million Founded: October 2013

Sun Basket Raises $7.1m. The San Francisco, CA-based healthy meal kit service delivers recipes and USDA-certified organic ingredients packaged and prepared for cooking. Recipes are designed by chef Justine Kelly and include options for those seeking vegetarian, paleo, gluten-free, and omnivore diets. Sun Basket will use the investment for expansion in the United States, an East Coast distribution center, and hiring. The company secured $4.5 million in funding in September 2015 and with this additional funding has closed its Series A round with a total of $11.6 million in capital.

Announced: 05/19/16 Stage: Series A extension Participating Institutional Investors: Vulcan Capital (lead), Filter 14, ROTH Capital Partners, Relevance Capital, Correlation Ventures, Rembrandt Venture Partners, Tyler Florence Group, Baseline Ventures, Robertson Stephens Partners, PivotNorth Capital Previous Investment: $4.5 million Founded: April 2014

Orderbird Raises $20m. The Berlin, Germany-based software producer provides restaurants with mobile point-of-sale solutions. The app can take and place orders, simply split bills, and create tax-authority-compliant reports. The investment includes a strategic investment from Metro Group, with the goal of improving digital solutions for restaurants. The funds will be used for expansion in Europe—including France—and for product development.

Announced: 05/11/16 Stage: Series C Participating Investors: Digital+ Partners, Metro Group, Concardis Previous Investment: $14.3 million Founded: March 2011

Swiggy Raises $7m. The Bangalore, India-based online platform for food ordering allows consumers to order meals from over 5500 restaurants for on-demand delivery. Swiggy currently operates in Bangalore, Guragon, Hyderabad, Delhi, Mumbai, Pune, Kolkata, and Chennai and makes 38,000 deliveries per day.

Announced: 05/10/16 Valuation: $130 million Stage: Series D Participating Institutional Investors: Accel Partners, DST Global, Norwest Venture Parners Previous Investment: $53.5 million Founded: August 2014

Purple Carrot Raises $5m. The Needham, MA-based vegan meal kit delivery service offers meal kits with 100% plant-based recipes and ingredients. The funding will be used for marketing research and increasing awareness of the brand and the environmental impact of plant-based eating. In addition, Purple Carrot will be adding a Guest Chef series, which will entail new, plant-based recipes created by well-known chefs specifically for Purple Carrot. Separate from the funding news, it was also announced that Purple Carrot’s chief innovation officer, former New York Times food columnist Mark Bittman, departed the company.

Announced: 05/10/16 Stage: Debt Financing Participating Institutional Investors: WindSail Capital Group Previous Investment/debt: $4.8 million Founded: October 2014

ReserveOut Raises $4.1m. The Amman, Jordan-based software producer provides restaurants with a technological system for reservations, table management, and customer databases. Restaurant customers can make table reservations through the ReserveOut mobile app at over 1000 restaurants in the Middle East. ReserveOut currently operates in Amman, Dubai, Beirut, Abu Dhabi, Doha, Jeddah, and Manama. With the investment, the company will expand operations to Saudi Arabia and Egypt. The investment will also be used to enhance the ReserveOut mobile app.

Announced: 05/08/16 Stage: Series A Participating Institutional Investors: Silicon Badia, 500 Startups, iMENA Group Previous Investment: $1.3 million Founded: 2012

Winc Raises $17.5m. The Los Angeles, CA-based wine club (formerly known as Club W) offers consumers wines from around the world. Customers can receive personalized recommendations for wine based of their preferences and “palate profile.” Wines can be ordered online and also purchased in-person at restaurants.

Announced: 05/04/16 Stage: Series B Participating Institutional Investors: Bessemer Venture Partners, Shining Capital Previous Investment: $13.1 million Founded: August 2011

PARTNERSHIPS

Peapod Partners with Whisk to deliver groceries and ingredients directly from online recipes.

Peapod Partners with ConAgra Foods and Campbell Soup to create new meal kits.

D.C. Taxicab Commission Partners with Delivery.com to deliver restaurant lunch orders.

HungryRoot Partners with Whole Foods to sell healthy “indulgence” foods in stores.

Instacart Partners with PlateJoy to deliver groceries for personal nutrition and health plans.

Punchh Partners with Olo to enhance restaurant sales through loyalty incentives and rewards programs.

Drync Partners with Ebay to create and source ebay Wine, a website exclusively for buying wine.

The New York Times partners with Chef’d to start delivering meal kits to readers

Amazon partners with Tyson Foods to create a meal kit service through Amazon Fresh.

INDUSTRY LANDSCAPE

As The Food Tech & Media ecosystem continues to see rapid change, Rosenheim Advisors created The Food Tech & Media Industry Map to help entrepreneurs, participants and investors understand this quickly evolving landscape. Let us know about your recent or upcoming funding, partnerships or acquisitions here.

Check out the 2015 Annual Report and last month’s round-up.

The post Food Tech Media Startup Funding, M&A and Partnerships: May 2016 appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A and Partnerships: February 2016

Brita Rosenheim — Tue, 05 Apr 2016 17:22:35 +0000

This is a monthly guest post, by consulting firm Rosenheim Advisors, which highlights the most interesting acquisitions, financings and partnerships within the Food Tech & Media ecosystem – digital content, social, local, mobile, grocery, e-commerce, delivery, ordering, payments, marketing and analytics – to give you insights into the latest funding and growth trends.

Investment and M&A activity in February was moderate, with over $265 million of reported transaction value during the month. The bulk of the value was driven from Just Eat’s acquisition of five companies from Rocket Internet ($140 million).

On the funding front, sixteen companies raised a little over $105 million during the month (excluding Instacart’s undisclosed Whole Foods investment), with all but four financings sized at less than $10 million. This was a significant shift from January’s activity, as most deals were Series A or earlier and there was an absence of later stage deals. Approximately 65% of funded companies had operations in the U.S.

Noticeably, “health” was a prominent theme across the deals for the month; ranging from One Medical’s acquisition of Rise to multiple fresh or healthy food concepts to nutritional data and analysis. While health is a regular food tech discussion topic, it doesn’t show up quite as regularly in the investment landscape. Beginning of a new trend or we just happened to still be in close proximity to New Year’s resolutions? We shall see.

M&A

Craftsvilla Acquires PlaceofOrigin. The Bangalore, India-based platform for specialty Indian foods will provide Craftsvilla, a Mumbai, India-based online marketplace for ethnic products, with a diverse regionalized food market and specific experience with the key logistics challenges in this space. As part of the acquisition, the 15 person team of PlaceofOrigin will join the Craftsvilla team. The acquisition follows Craftsvilla’s acquisition of Sendd, the Mumbai, India-based shipping service in January.

Announced: 02/26/16 Terms: Not Disclosed (“all equity deal”) Previous Investment: Not Disclosed Founded: September 2014

Thirstie Acquires DrinkFly. The Chicago, IL-based mobile app for on-demand alcohol delivery will grow the footprint of Thirstie, particularly in Chicago’s metro area, where it will now be the single biggest player in the space. Based in New York, NY, Thirstie is a content-to-commerce marketplace for alcohol delivery, offering both traditional ecommerce and on-demand delivery by partnering with local stores to offer a range of wine, beer, and spirits for delivery within an hour. DrinkFly’s users and retail partners will be transitioned over to the combined entity, which includes Thirstie’s digital magazine, The Craft (the company says 80% of consumers come through their content platform), featuring recipes, news, hosting tips and local stories.

Announced: 02/17/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: April 2014

Just Eat Acquires Rocket Internet’s Delivery Businesses in Spain (La Nevera Roja) and Italy (PizzaBo & hellofood Italy), Brazil (hellofood Brazil) and Mexico (hellofood Mexico). In order to “further reduce complexity of Rocket Internet,” the Berlin, Germany-based incubator has decided to sell “non-core operations that are not market-leading” to the London-based publically traded online ordering and delivery company Just Eat. Interestingly, this comes exactly one year after Rocket Internet announced it formed its “Global Online Takeaway Group” in addition to acquiring La Nevera Roja and Pizzabo. While the exact value of the assets being sold are difficult to pinpoint, Tech Crunch notes that there are clues that Rocket is selling these at a loss; “For example, in Italy, hellofood is understood to have paid €55 million — nearly half the value of the whole deal today — for PizzaBo alone.”

Announced: 02/05/16 Terms: $140 million

One Medical Acquires Rise. The San Francisco, CA-based mobile app for personalized nutrition and diet coaching will allow One Medical, a healthcare company, to connect patients with virtual nutritionists. According to the Wall Street Journal, One Medical sees an opportunity to “offer its patients a wider range of healthcare services via the smartphone that could potentially save them trips to the doctor’s office”. Rise will continue to operate independently, and the company will still be run by its original co-founders within One Medical.

Announced: 02/05/16 Terms: $20.0m Previous Investment: $4.0m Founded: 2013

FUNDING

iChef Raises $5.6m. The Taipei, Taiwan-based software developer produces iPad point-of-sale systems for restaurants. The software system includes table management, reservations, ordering, and payment. iChef a will use the funding to expand and to develop data analytics. To date, over a thousand restaurants are using iChef systems, and the company aims to reach 3,000 stores in Asia by the end of 2016.

Announced: 02/25/16 Stage: Series A Participating Institutional Investors: China Development Industrial Bank (CDIB), CDIB Capital, AppWorks Ventures Previous Investment: $1.5 million Founded: 2012

Pocketin Raises $150k. The Noida, India-based platform for restaurant deals and events allows consumers to discover, compare, and choose restaurant deals in real time. To date, the company reports it has over eight thousand app downloads and has seated over 6,500 diners. The funds will be used for expansion throughout Delhi, Noida, Ghaziabad, and Guragon, with additional plans for expansion to Mumbai, Bangalore, and Dubai. In addition, the company says it plans to double its team of 15 and partner with over 1,200 restaurants in the next six months.

Announced: 02/24/16 Stage: Seed Participating Institutional Investors: Swastika Previous Investment: Not Disclosed Founded: August 2015

Deliv Raises $28m. The Menlo Park, CA-based crowdsourced delivery service provides customers with same-day delivery of products from local merchants, national and e-commerce retailers. Deliv currently operates in over 100 cities and serves over four thousand businesses. UPS Strategic Enterprise Fund is a notable new investor in the round, stating it intends to gain insights into the market dynamics of same-day delivery. The investment will be used for product development and to broaden the company’s national presence.

Announced: 02/24/16 Stage: Series B Participating Institutional Investors: UPS Strategic Enterprise Fund, Westfield Labs, Taubman Centers Inc, Simon Venture Group, The Macerich Company, General Growth Properties, PivotNorth Capital, RPM Ventures, Upfront Ventures Previous Investment: $12.4 million Founded: January 2012

Instacart Raises Undisclosed Strategic Funding from Whole Foods. The San Francisco, CA-based grocery delivery service will receive funding from supermarket chain, Whole Foods. The deal will expand available geographies with Instacart delivery and includes a five-year partnership between the companies, making Instacart the exclusive delivery service for Whole Foods perishable items. Additionally, with the Instacart Deals platform, Whole Foods Market shoppers can take advantage of special deals and discounts on their favorite products. The partnership thus far is reportedly impacting Whole Foods’ bottom line; as TechCrunch points out, “Whole Foods stores with dedicated shoppers are seeing growing Instacart sales – on average, this can be in the 5 to 10 percent range of their total store sales.”

Announced: 02/23/16 Participating Institutional Investors: Whole Foods Previous Investment: $274.8 million Founded: July 2012

Fooda Raises $5.9m. The Chicago, IL-based catering platform offers virtual cafeterias to corporate offices by sourcing a rotating daily menu from local restaurants. The company also offers delivery and pop up locations, which extends the reach and brand of local restaurants. As the Chicago Tribune reported, in November the company opened its first mall location at The Shops at North Bridge to expand to more publicly accessible locations.

Announced: 02/23/16 Stage: Series B Participating Institutional Investors: Undisclosed Previous Investment: $12.8 million Founded: 2011

RAW Pressery Raises $4.5m. The Mumbai, India-based delivery juice company currently delivers cold-pressed juices to homes in six Indian cities. According to Tech Crunch, the company aspires to be the largest “clean label” lifestyle brand by adding soups, smoothies, and other pre-packaged food without additives. The company will use the money to introduce new flavors, increase production capacity and launch brand-building campaigns

Announced: 02/23/16 Stage: Series B Participating Institutional Investors: Sequoia Capital, Saama Capital, DSG Consumer Partners Previous Investment: $1.8 million Founded: 2013

First Eat Raises $200k. The Guragon, India-based mobile app offers subscription and on-demand delivery of healthy meals. The startup allows users to choose meals according to their health requirements, and aims to solve the problem of ‘awareness, availability and affordability’ of necessary healthy meals, by offering healthy organic meal options. The funds will be used to expand throughout the NCR region, deploy targeted marketing and develop the First Eat technology platform. In addition, the company aims to increase service to 400 to 500 meals per day next quarter.

Announced: 02/22/16 Stage: Seed Participating Investor: “Undisclosed F&B entrepreneur” Previous Investment: Not Disclosed Founded: 2015

Feasty Raises $800k. The Cincinnati, OH-based local deals app shows users deals at nearby restaurants based on their location. According to the Cincinnati Business Courier, users don’t need to purchase the deals, the app is intended to help encourage users to choose restaurants with small perks, like a free item. The company has partnered with 60 restaurants in Cincinnati and Northern Kentucky.

Announced: 02/19/16 Stage: Angel Participating Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2015

TableHero Raises $1m. The Mountain View, CA- and Bangalore, India-based company provides restaurants and small businesses with intelligent operating systems. The operating systems include a simple website designer, as well as products to manage reservations, bookings, payments, and customer loyalty. The investment will be used for product development and for the engineering and product design team. TableHero plans to launch the product in the U.S. on the west coast in cities like Seattle, Portland, Los Angeles, and the Bay Area.

Announced: 02/16/16 Stage: Seed Participating Institutional Investors: Globevestor, Powai Lake Ventures, GrowX Venture Management Previous Investment: Not Disclosed Founded: May 2015

Label Insight raises $10m. The St. Louis, MO-based technology and software producer provides consumers and retailers with information about food labels. Label Insight technology allows nutritional information and food product data to be more transparent to retailers, consumers, and manufacturers. Data includes, but is not limited to, allergen information, whether foods meet “healthy” standards, and if sales of certain types of products are up or down. The strategic investment by KPMG allows its member firms to offer retail food and beverage clients around the globe access to Label Insight’s proprietary technology, which transforms product information into smart attributes, such as nutrients and allergens, providing users with a deep understanding of their product set. The investment will be used to develop new products, broaden custom data views and expand data science capabilities.

Announced: 02/11/16 Stage: Series B Participating Institutional Investors: KPMG Capital (lead), Mercury Fund, Cultivation Capital, Serra Ventures, dunnhumby Ventures, West Capital Advisors Previous Investment: $3.0 million Founded: January 2008

Good Uncle Raises $2.2m. The New York, NY-based delivery-only restaurant concept, which expects to launch in the fall, will allow consumers in smaller U.S. cities to order top restaurant food from major cities for on-demand delivery. The company plans to set up kitchens and delivery fleets in those smaller cities and towns, linking local populations to them with a mobile app that features small, carefully curated menus of hits from acclaimed restaurants. The funds will be used to build a team and app and develop restaurant partnerships.

Announced: 02/09/16 Stage: Seed Participating Institutional Investors: First Round, Box Group, Gunderson Dettmer Previous Investment: Not Disclosed Founded: November 2015

IfOnly Raises $10.25m. The San Francisco, CA-based marketplace for “incredible experiences” offers a catalog of experiences with experts in the domains of food, sports, animals, entertainment, technology, and more. The company currently operates in the Bay Area, New York, and Los Angeles and offers over 10 thousand experiences. The company is working to offer more experiences tailored to (and priced for) a broader range of clients.

Announced: 02/08/16 Stage: Series B Participating Institutional Investors: Khosla Ventures, Founders Fund, Advance Newhouse, American Express, Digital Garage Previous Investment: $15.0 million Founded: 2012

Power Supply Raises $5m. The Alexandria, VA-based health food delivery service offers healthy meals for one-time or weekly subscription delivery. The company differs from other meal delivery services in that it uses local restaurants and caterers in place of central production kitchens and that it delivers directly to fitness community spots, such as gyms. Power Supply is currently operating in Washington D.C., Los Angeles, and San Francisco. The investment will be used to expand into new markets.

Announced: 02/04/16 Stage: Seed Participating Institutional Investor: Upfront Ventures Previous Investment: $0.5 million Founded: 2010

FarmDrop Raises $4.4m. The London, England-based online farmers market allows consumers to buy local food directly from local farmers. The company’s mission is to “fix the food chain” by making the food industry based on local farms and food production. Customers place orders online and pick up their orders from producers at their local FarmDrop venue. FarmDrop will use the funding to develop its platform.

Announced: 02/03/16 Stage: Venture Participating Institutional Investors: Jamjar Investments, Atomico Previous Investment: $1.3 million Founded: 2012

Food.ee Raises $6m. The Vancouver, Canada-based corporate catering and concierge service provides companies with meal delivery from local high-end restaurants. Food.ee has over 4000 customers and has partnered with over 250 restaurants. After success in its three U.S. pilot cities—Austin, Denver, and Philadelphia, the company will use the funds to l aunch in Atlanta and Minneapolis in March as well as more U.S. cities throughout 2016.

Announced: 02/03/16 Stage: Series A Participating Institutional Investors: BDC Capital Previous Investment: $4.0 million Founded: October 2011

Thrive Market Raises ~$20m. The Los Angeles-based wholesale buying club for health-conscious products has reportedly raised additional capital after an oversubscribed Series A this past summer via a convertible note, according to Bloomberg. The company has stated 2015 revenues of close to $50 million, with about 180,000 members, and recently expanded into private label, releasing its own organic coconut oil and tomato sauce.

Announced: 02/01/16 Stage: Series A Participating Investors: Henry Kravis, Paul Tudor Jones Previous Investment: $39.0 million Founded: 2013

La Belle Assiette Raises $1.5m. The Paris, France-based on-demand private-chef and catering service allows consumers to select a professional chef to cook in their home or at office events. The chosen chef provides all ingredients and equipment to cook the catered menu. Currently, La Belle Assiette employs over 700 professional chefs in six European countries. The investment will be used to launch four new catering services—Buffets, Canapé Receptions, Office Lunches and Cooking Classes—in the next six months.

Announced: 02/01/16 Stage: Seed Participating Institutional Investors: Kima Ventures, Cabiedes & Partners Previous Investment: $2.2 million Founded: February 2012

PARTNERSHIPS

Foursquare Partners with Delivery.com to provide on-demand delivery in 36 cities in the United States.

Peapod Partners with WMATA to allow commuters to pick up grocery delivery orders at their Metro station stop.

Zomato Partners with Quick Delivery to provide online ordering and on-demand delivery in the Philippines.

Amazon Partners with U.K. Grocer Morrisons to include “hundreds of Morrisons products” within Amazon’s one-hour Prime delivery and Pantry services.

Scanbuy Partners with inMarket to connect with consumers via mobile app while they are shopping.

HotSchedules Partners with PAR Technology Corporation to sync point-of-sale data with HotSchedules mobile platform.

INDUSTRY LANDSCAPE

Check out the 2015 Annual Report and last month’s round-up.

The post Food Tech Media Startup Funding, M&A and Partnerships: February 2016 appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A and Partnerships: January 2016

Brita Rosenheim — Thu, 10 Mar 2016 18:29:47 +0000

Despite market trepidation, the new year kicked off strong for the global food tech and media ecosystem with over $500 million invested (through 17 investments and five acquisitions) plus a freshly minted $3.3 billion for China’s Meituan-Dianping, securing the company a place within the top five unicorns at a $18 billion valuation. Within that, U.S.-based companies took in a little over $300 million in private company funding, and represented all but one acquisition.

On the M&A front, notably, three of the five deals were local grocery delivery services based in TX and CA. The largest, and only international, deal was restaurant guidebook publisher Michelin’s acquisition of Bookatable, estimated to be valued at approximately $122 million. As Eater and French startup blog Rude Baguette respectively note, “it’s certainly a major leap into the 21st century for the 127-year-old company” and “represents both a big step into digital for Michelin, as well as a change in the [mergers and acquisitions] mindset in France.”

Restaurant and meal delivery-related tech was overwhelmingly prevalent among the funding sectors both globally and within the U.S. Signaling a maturing industry, while there were a few early stage concepts, more than half of the investments were sized larger than $15 million.

M&A

Farmhouse Delivery Acquires Greenling and Urban Acres. With the acquisitions, the Austin, TX-based online grocery delivery service Farmhouse Delivery, which offers local produce items for weekly or biweekly delivery, will grow the team to approximately 50 workers and offer a subscription service to customers in the Austin, Dallas, Fort Worth, San Antonio and Houston areas. The company doesn’t expect to operate outside of Texas.

Announced: 01/15/16 Terms: Not Disclosed Previous Investment: Greenling – $8.2m Urban Acres – Not Disclosed Founded: Greenling – 2005; Urban Acres – 2008

Next Glass Merges with Untappd. Untapped, a Los Angeles, CA-based mobile app that allows users to socially share beer with other users will enhance the platform for Next Glass, a Wilmington, NC-based mobile app for personalized wine and beer recommendations. Going forward, both apps will continue operating under their original names, and each have plans for new developments. As part of the merger, the co-founders of Untappd will join the Next Glass leadership team.

Announced: 01/15/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: Untapped – September 2010; Next Glass – December 2012

Michelin Acquires Bookatable. The London, UK-based online booking service and mobile payments platform is used by more than 15 thousand restaurants across Europe, allowing Michelin to become Europe’s leading digital service for restaurant reservations. According to Rude Baguette, Bookatable was seeing increased competition in Europe from TheFork (LaFourchette, acquired by TripAdvisor in May 2014) among others; however, the relationship between Michelin & Bookatable started as early as May 2013, when the two began their partnership, allowing booking of Michelin-rated restaurants via Bookatable. With the acquisition, Bookatable plans to expand its new service to countries in Scandinavia. In case you are keeping track – Bookatable was previously known as Livebookings, as the two companies appear to have merged in 2007 (and before that, Livebookings was called Profitable.net).

Announced: 01/11/16 Terms: Est €108 m ($122m) Previous Investment: $56.5m Founded: 2005

GrubMarket Acquires FarmBox. The Los Angeles, CA-based organic grocery delivery service will expand the business of Grubmarket, a Newark, CA-based online marketplace where consumers can buy products from farmers markets, farms, and restaurants. The company plans to expand nationwide and according to an interview with Forbes, with the acquisition, the company will reach a total of 60 employees, expecting to double headcount, to 100-140 employees, by the year’s end.

Announced: 01/05/16 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2009

FUNDING

Tinmen Raised Undisclosed Angel Funding. The Hyderabad-India-based food delivery startup sources meals from home cooks and delivers to offices and professionals, “like a virtual cafeteria.” According to Inc42, the capital will be used to serve a larger set of customers in Hyderabad and thereafter expand to other cities.

Announced: 01/29/16 Stage: Angel Participating Institutional Investors: Lead Angel Network Previous Investment: Not Disclosed Founded: August 2015

Black Garlic Raises Undisclosed Seed. The Jakarta, Indonesia-based meal-kit delivery startup is targeted towards middle class families and takes about 45 minutes to cook. According to Tech In Asia, the funding will be used to scale up the company’s operations in the Jakarta metro area, and to diversify Black Garlic’s offerings.

Announced: 01/25/16 Stage: Seed Participating Institutional Investors: Convergence Ventures, Skystar Capital Previous Investment: Not Disclosed Founded: 2015

SheKnows Media Secures $22m Credit Facility. The New York, NY-based women’s digital media company operates as a platform where experts, bloggers, and social media influencers post content designed to empower women. According to AdExchanger, 75% of total ad revenue is connected one way or another with an influencer marketing campaign. SheKnows acquired BlogHer in November 2014 and had previously acquired a handful of female-focused publishers, giving it 92 million unique visitors. The credit line will be used for further acquisitions (focused on companies “empowering women”), as well as to enhance SheKnows Media’s Momentum Content Management System technology platform.

Announced: 01/26/16 Stage: Debt Participating Lender: Ally Corporate Finance Previous Investment: Not Disclosed (Great Hill Partners acquired SheKnows in 2012) Founded: November 2003

FiveStars Raises $50m. The San Francisco, CA-based platform for customer loyalty rewards provides rewards programs for restaurants and small businesses via mobile app. Programs track customer visits and include rewards such as discounts and coupons. To date, FiveStars has been used by over 10 thousand merchants and 10 thousand consumers. FiveStars will use the investment to continue to build the team, grow their brand and expand within the United States.

Announced: 01/22/16 Stage: Series B Participating Institutional Investors: HarbourVest Partners (Lead), Menlo Ventures, DCM, Lightspeed Venture Partners Previous Investment: $42.7 million Founded: 2011

Olo Raises$40m. The New York, NY-based white label SaaS platform for mobile and online ordering and delivery integrates its services with restaurant’s point-of-sale systems to maximize sales and improve the customer experience. The investment will allow Olo to grow enhance its offerings, and expand its on-demand delivery platform, Dispatch. Dispatch facilitates access to a national network of independent Delivery Service Providers, collects real-time price quotes, chooses the best available, and extends the option to the consumer.

Announced: 01/21/16 Stage: Series D Participating Institutional Investors: The Raine Group Previous Investment: $23.3 million Founded: 2005

Boxed Raises $100m. The Edison, NJ-based ecommerce startup sells Costco-sized groceries and household goods online and via mobile app. Rather than taking market share form big box stores like Costco, BJ’s, or Sam’s Club, the founder maintains the company is converting a customer base of over 80 percent ages 25 to 44 to changing their habits to bulk buying instead of purchasing one-off. The company will use the capital infusion to expand the team, offerings and customer service operations.

Announced: 01/20/16 Stage: Series C Participating Institutional Investors: blisce, Huangpu River Ventures Limited, Vaizra Investments, FJ Labs, Jose Marin, Fabrice Grinda, Yuri Milner, GGV Capital, Safa Partners, Light Street Capital Management Previous Investment: $32.6 million Founded: June 2013

Gather Raises $2.5m. The Atlanta-based event management software helps restaurants and venues manage and grow their private events business. Gather allows clients to respond to leads, manage their calendar, create and send proposals, collect payments and more. The company states that it is profitable, and will be using the funding for expedited product development, sales and marketing. The company employs about 25 and plans to double its workforce in the next 12 months.

Announced: 01/19/16 Stage: Series A Participating Institutional Investors: Storm Ventures (lead), Ludlow Ventures Previous Investment: Not Disclosed Founded: March 2012

Tovala Raises $500k. The Chicago-based smart kitchen startup automates home cooking through a new type of food tech appliance plus the delivery of premade meals. The company’s appliance, also called Tovala, utilizes a combination of dry and wet heat cooking technology instead of microwave technology, so users can cook several different types of foods in the same unit at the same time. Users can create their own recipes (and upload to the app for the potential to earn royalties), or they can subscribe to get fresh, chef-designed meals delivered to them weekly that are specifically developed for the machine.

Announced: 01/19/16 Stage: Seed Participating Institutional Investors: Origin Ventures Previous Investment: $70k Founded: May 2015

ALICE Raises $9.5m. The New York, NY–based hospitality operations platform focuses primarily on hotels, and enables all front of house, back of house and guest communication needs to be handled in one platform. According to Skift, the new strategic investor allows the company to leverage Expedia’s database of hotel partners. The team will use the funding to “continue to build out the technology and significantly expand the team hiring sales, engineering, product, and account management roles.”

Announced: 01/19/16 Stage: Series A Participating Institutional Investors: Expedia (lead), 645 Ventures, Laconia Ventures, neuehouse Previous Investment: $3.5 million Founded: July 2012

Swiggy Raises $35m. The Bangalore, India-based on-demand delivery and payments platform service allows customers to order meals from restaurants for on-demand delivery. Swiggy currently operates in Bangalore, Gurgaon, Hyderabad, Delhi, Mumbai, Pune, Kolkata and Chenna, with around 5000 restaurants on its platform. The investment will be used to expand the company, hire engineering talent, and upgrade platform technology.

Announced: 01/18/16 Stage: Series C Participating Institutional Investors: RB Investments, Harmony Partners, Accel, Northwest Venture Partners, SAIF Partners Previous Investment: $18.5 million Founded: August 2014

Meituan-Dianping Raises $3.3b. The Shanghai, China-based mobile app allows consumers to receive group discounts (similar to Groupon), order food from restaurants, and read and write restaurant reviews. The company, which has emerged as the largest player in China’s online-to-offline (O2O) market, was formed last fall after Meituan (backed by Alibaba) merged with Dianping (backed by Tencent). Meituan and Dianping still operate as independent brands.

Announced: 01/18/16 Valuation: $18.0 billion Stage: Series F Participating Institutional Investors: Capital Today, Baillie Gifford, Canada Pension Plan Investment Board, TBP Capital, Temasek Holdings, ST Global, Tencent Holdings Previous Investment: $2.1 billion (represents combination of Meituan and Dianping investment) Founded: October 2015 (through merger)

Grain Raises $1.7m. The Singapore-based “Full-Stack” food delivery service manages the process from meal preparation and cooking, to orders and delivery. The company keeps its menu narrow with four different meals available each day on a selection that rotates weekly. According to Tech In Asia, the company plans to use the funding build up infrastructure and the team, including marketing and tech, as well as expansion to Hong Kong and beyond.

Announced: 01/14/16 Stage: Series A Participating Institutional Investors: NSI Ventures (lead), 500 Startups, Digital Media Partners VC, Ivan Lee Previous Investment: Not Disclosed Founded: 2014

Foursquare Raises $45m. The New York, NY-based mobile platform for local discovery allows users to explore options for dining and shopping in cities via location-based information and reviews written by other users. The investment will be used to build out its enterprise business, including hiring 30 new positions across sales, engineering and other functions. The round is said to value the company at approximately half of the $650 million valuation it garnered with a $77 million Series D raise in February 2014, but in a TechCrunch interview the new CEO, Jeff Glueck, is careful to note that the financing round was oversubscribed.

Announced: 01/14/16 Stage: Series E Participating Institutional Investors: Union Square Ventures (lead), Andreessen Horowitz, DFJ Growth, Morgan Stanley Previous Investment: $117.4 million Founded: March 2009

Vivino Raises $25m. The Copenhagen, Denmark-based wine discovery app uses image scanning technology to identify wines consumers are drinking and offer suggestions based on users’ rating of the scanned wine. Vivino is currently used by 13 million consumers in 228 countries. The company plans to use the funding to further expand within the U.S., Italy, France, Spain, and Germany, and aims to have 25 million users by the end of 2016. Notably, the lead investor is strategic; SCP Neptune International, is the investment arm of Moet Hennessy’s global CEO Christophe Navarre.

Announced: 01/12/16 Stage: Series B Participating Institutional Investors: SCP Neptune International (lead), Balderton Capital, Creandum, SEED Capital Denmark Previous Investment: $12.4 million Founded: 2009

FreshMenu Raises $17m. The Bangalore, India-based meal delivery service runs its own kitchen and offers main meals, salads, sides, and desserts cooked by professional chefs for on-demand delivery. FreshMenu currently operates in Bangalore, Mumbai, and Guragon and will use the investment for further expansion in India. The funds will also be used to build the brand and increase staff.

Announced: 01/08/16 Stage: Series B Participating Institutional Investors: Lightspeed Venture Partners, Zodius Capital Previous Investment: $5.0 million Founded: 2014

Toast Raises $30m. The Boston, MA-based provider of point-of-sale systems offers Android tablet point-of-sale systems for restaurants, bars, and other food establishments. The systems provided by Toast include customer loyalty information and are used by 1,400 establishments in 43 US states. The funding will be used to hire more employees, as well as for marketing and expansion across the United States. According to a TechCrunch interview, in 2016 the company plans on launching a suite of tools that allow Toast to integrate with other services.

Announced: 01/05/16 Stage: Series B Participating Institutional Investors: Bessemer Venture Partners, Google Ventures Previous Investment: $3.0 million (debt financing) Founded: December 2011

Dipjar Raises $2.4m. The New York-based hardware and software startup provides digital tip jars and donation boxes for credit cards. DipJar manages the processing and disbursement of funds, while customers control the dollar amount setting and monitor their intake through the software dashboard. The company intends to use the funds to expand its national hardware presence and continue development of software solutions for customers.

Announced: 12/28/15 Stage: Seed Participating Institutional Investors: Bolt, Project 11 Ventures, Corazon Capital, Charge Ventures Previous Investment: $0.4 million Founded: 2012

PARTNERSHIPS

MyWebGrocer Parters with Mastercard to streamline consumer grocery shopping.

HelloFresh Partners with Jamie Oliver to share healthy recipes with home cooks.

UnderArmour, Inc. Teams Up With IBM incorporate the Watson supercomputer into its newest fitness and health-tracking app.

Restaurant review app OpenRice partners with foodpanda to deliver in Hong Kong.

NutriSavings and FreshDirect Partner to Reward Consumers for Purchasing Healthier Foods.

Chili’s® Grill & Bar partners with Olo to power its online ordering platform.

INDUSTRY LANDSCAPE

Check out the 2015 Annual Report and last month’s round-up.

The post Food Tech Media Startup Funding, M&A and Partnerships: January 2016 appeared first on Food+Tech Connect.

2015 Food Tech Media Funding & Acquisition Trends Report

Brita Rosenheim — Mon, 29 Feb 2016 16:52:47 +0000

This annual report, by consulting firm Rosenheim Advisors, looks at the financing and acquisition trends in the Food Tech & Media ecosystem, which encompasses digital content, social, local, mobile, grocery, e-commerce, delivery, ordering, payments, marketing and analytics.

$6.8 Billion of Global Food Tech Investment in 2015

The global food tech and food media ecosystem was piping hot in 2015, with (at least)* $6.8 billion of capital flowing into private companies (including $2.3 billion within the U.S.). Outside of the U.S., a majority of both investment and acquisition activity was driven by China, Germany, India and the U.K.

China appears to be a cycle ahead of the U.S. in terms of market maturity, with an increasing number of companies scaling beyond U.S. benchmarks of reach and growth. Notable deals in 2015 included the merger of China’s competing firms Meituan and Dianping (“akin to a mix of Yelp, GroupOn and food delivery”), reportedly now valued at $18 billion, as well as the massive stockpiling by Ele.me which closed two rounds (Series E and F) totaling $980 million, in addition to an undisclosed strategic investment from Chinese ridesharing leader Didi Kuaidi.

Earlier in the year, Germany’s Rocket Internet made a substantial strategic move to “create the biggest Internet-based food-ordering service outside of China,” and thus formed the “Global Online Takeaway Group.” I definitely recommend spending some time with Rocket Internet’s presentation discussing its investment thesis in the food sector (automatic download of pdf) to gain a clearer understanding of the vision behind the consolidation – some useful industry stats in there as well.

The online ordering and delivery segments represented a significant portion of the global consolidation over the past few years, with Rocket Internet and its portfolio companies (plus others such as Zomato, Just Eat and Grubhub), gobbling up a number of regional players. As with most roll-up M&A plays, now these teams will need to deal with the complexity of their newly acquired networks, and we will likely see some moments of reckoning in 2016 (some have already occurred).

*Given that most small deals are not translated or reported by the international press, the global data represented in this report is not comprehensive, and weighted towards larger/later stage deals.

Over $2.3 Billion Private Capital Invested into the U.S in 2015

The U.S. food tech and food media industry continued to mature in 2015 as investors made their biggest bets yet, with larger and later stage deals increasingly prevalent. We saw a notable shift towards expansion and scalability for the leaders of the pack with 36 percent of all deals sized at $10 million or greater (up from 32 percent in 2014), and 22 percent of deals sized at $20 million and above (up from 17 percent in 2014).

Note: Data for U.S.-based companies only, and reflects the sectors found in the Food Tech and Media Industry Map. Investment data does not include any M&A data or public market offerings.

“On-Demand” + “Convenience” Economy Drove Momentum

With 142 private company fundings totaling over $2.3 billion, 2015 brought in slightly fewer overall deals and dollars than the previous year (there were 157 deals raising $2.6 billion in 2014). That may sound surprising to readers, as the persistent press coverage and stream of high-profile deals seemed to push 2015 into the highest level of food tech mania.

That is likely due to the mounting prevalence of startups and companies aiming to serve our every need through the “On Demand” + “Convenience” Economy, which drove a significant portion of the activity throughout the year (representing approximately 44 percent of 2015’s total U.S. food tech funding versus 29 percent in 2014). Within the sectors that broadly represent this sizzling subcategory (Online Grocery, Catering Marketplaces, Meal Delivery, Experiential Marketplaces, Online Ordering/Delivery, Food eCommerce), just over $1 billion was raised in 2015, up 34 percent from the $760 million of funding in 2014.

In the latest 2016 Food Tech & Media Industry Landscape (at the top of this report) I have clustered the boxes for the “On Demand” + “Convenience” Economy and outlined them in light blue. Notice the lack of M&A activity in these sectors. This will change in 2016.

Source: Rosenheim Advisors.

(1) Adjusted; excludes investment data for: LivingSocial, Pinterest, Square, Inmar.

(2) M&A fundraising data derived from acquired companies with reported funding info (aproximately half of the deals annually).

(3) Does not include M&A deals or public company funding.

Note: Data for U.S.-based companies only, and reflects the sectors found in the Food Tech and Media Industry Map. Investment data does not include any M&A data or public market offerings. Due to new company and funding updates, the 2013 and 2014 data reflected in this chart does not equal the data provided in the 2014 Food Tech Media Funding & Acquisition Trends Report.

Food Tech a Mixed Plate in the Public Markets

There were two IPOs in the food tech sector in 2015 (versus four in 2014). First Data and Square, which represented a combined $16.9 billion of market capitalization (at offerings), finished the year above their IPO price, with Square closing at $13.09 ($4.3 billion market cap) and First Data closing at $16.02 ($14.4 billion market cap) on the last day of 2015.

The 2014 crop of food tech IPOs didn’t fare very well during 2015, with one exception. From January 2, 2015 to December 31, 2015, Quotient Technology (Coupons.com) and Everyday Health both lost 60% and 59%, respectively, of their stock price value.

During the same period, Grubhub’s stock price dipped 34%, while Just Eat closed up for the year at 55%. What happened? As Mahesh Vellanki points out in his analysis between the two parallel businesses, “the majority of Just-Eat’s revenue is still UK-based, and few competitors have been able to threaten their position,” while Grubhub faced a plethora of new entrants via the “On Demand” + “Convenience” Economy and subsequently altered its business model – which Wall Street reacted dramatically to. A number of banks seem to think the market overacted to the potential threat from these new competitors, so it will be interesting to see how 2016 shapes up for Grubhub.

However, while we are very far from IPO-mania, the industry is still accumulating a growing number of well-capitalized players, and even with the currently rocky IPO market, new talk of IPOs among pure-play food tech companies has begun to surface (vs. tech incumbents with a wider focus like Yelp, Quotient (Coupons.com), Groupon, Priceline, etc.).

In what could be good news for growing restaurant tech companies, the payments and Point of Sale (POS) sector has three likely candidates in the pipeline, with Lightspeed, ShopKeep, and Revel all eyeing the public markets. Rocket Internet’s Delivery Hero has reportedly already picked bankers for a 2016 listing, while HelloFresh, another one of Rocket Internet’s investments, had filed in 2015 but put the IPO on hold in November (not before we grabbed some great market data though, thanks again Mahesh!). There is also speculation about upcoming public offerings for Zomato, Pinterest and Yext.

Echoing my own commentary from years past, the rise in incumbents focusing on this space will ultimately impact prospects for early stage companies too, as the new acquisition currency of the public markets will create additional exit paths for the variety of startups that will ultimately require a larger platform to survive.

Consolidation on the Menu for 2016

The reported value of U.S. food tech acquisitions in 2015 totaled close to $1 billion versus close to $1.2 billion in 2014 (plus another $7.9 billion for the Open Table and Micros deals combined). I had predicted that 2015 was going to be a significant M&A year in the food tech space, but it ended up lacking the definitive momentum that I had expected to occur.

Activity was indeed strong with 60 reported deals (vs 49 in 2014), and incumbents continued to increase their strategic stake in the ecosystem (including Grubhub, Groupon, Meredith, Yelp, UnderArmour, Tripadvisor, Priceline) but there were no monster deals in the U.S., and while there was a clear surge in the Ordering / Delivery / Payments categories, many targets (and even acquirers) were still on the smaller side.

While my consolidation predictions were mistimed for 2015, I think the private market overhang will give way to a significant number of opportunistic acquisitions in 2016. In addition to the likely activity in the “On Demand” + “Convenience” Economy sectors, I think we will continue to see more global travel companies dipping into the food and restaurant sector. However, considering acquisitions like MyFitnessPal (Under Armour), or Rise (OneMedical), it is clear there is still a varied playing field of strategics looking to this space for thriving communities to engage with and build upon.

INDUSTRY LANDSCAPE

Check out last month’s round-up.

The post 2015 Food Tech Media Funding & Acquisition Trends Report appeared first on Food+Tech Connect.

10 Startups Reducing Food Waste One Byte At A Time

Nina Meijers — Fri, 09 Oct 2015 20:55:48 +0000

Food Waste is a massive problem. One third of all food produced in the world goes to waste. From restaurant scraps, to grocers disposing of imperfect produce, to spoiled food, roughly $400B in food ends up in landfills every year resulting in 3.3 billion metric tons of greenhouse gases annually.

Last week, world leaders dinned on food scraps at the United Nations – a meal prepared by former White House chef Sam Kass and renowned chef Dan Barber of Blue hill in an attempt to “put food on the climate change agenda,” Kass tells The New Yorker. Food waste is hot. Scores of companies are building technologies to help reduce waste across the supply chain, from farming and distribution to restaurants and home-cooking. We’ve rounded up some of the most innovative companies below.

Want to dig deeper into food waste? We’re hosting our Food Waste Innovation Meetup on Wednesday, October 21 in NYC. Hear from some of the innovators below and enjoy food waste-inspired snacks, drinks and networking with the food tech and innovation community. RSVP here.

Mintscraps

MintScraps wants to take a bite out of restaurant food waste. The a software-as-a-service (SaaS) platform helps restaurants monitor and reduce their waste. Using sensor technology, Mintscraps gives restaurants real-time waste data and helps them identify potential cost savings. It also allows operators to monitor for inefficiencies and waste generation patterns to help streamline operations and cut costs. Founder Tony Vu will be speaking at our Food Waste Meetup on 10.21. RSVP here.

Pareup

Pareup is like Groupon for food. The app connects eaters with unsold, unexpired food at a discounted price. It helps retailers and restaurants make additional revenue while reducing their food waste, and it offers eaters access to perfectly good food that would otherwise be wasted. Pareup makes a profit by taking a small fee from every transaction, but the app is free to download for eaters. It is currently available in New York City.

Zero Percent

Zero Percent puts surplus food to good use. Its app lets restaurants and retailers list their leftover food and then sends texts to food pantries, soup kitchens, etc. to let them know what’s available. The startup handles pick up and delivery of the food. Its software also provides users with analysis and reporting features to help them waste less, and it tracks donations made so that giving organizations can take tax deductions. The Chicago-based startup has 322 donors, has worked with 279 non-profits and has donated 740k meals since launching in 2012.

Imperfect

Imperfect is bringing “ugly” produce to the masses one box at a time. The subscription service delivers discounted produce that would otherwise be wasted (perfectly edible, but misshapen or slightly discolored). The startup’s goal is to repurpose produce that retailers and distributors reject while helping generate extra revenue for farmers and making local produce more affordable. The California-based company sources from growers across the state and delivers boxes directly to customers’ doors. Its small vegetable box costs $12 for 10-14 pounds of produce and its large fruit and vegetable box costs $18 for 17-20 pounds.

412 Food Rescue

412 Food Rescue works with food retailers, wholesalers, restaurants, caterers, universities and more to rescue and deliver un-sellable food to organizations that serve people who are food insecure. The startup’s app employs machine learning algorithms to efficiently match available food to a beneficiary organization’s particular needs. It is launching a beta version in the coming weeks, as well as a pilot program in Pittsburgh, PA. Founder Leah Lizarondo will be speaking at our Food Waste Meetup on 10.21. RSVP here.

WiSErg

WISErg’s Harvester machine up-cycles food waste into fertilizer. It works with retailers, grocers and commercial kitchens to convert their food waste into nutrient-rich organic fertilizer with no mess, odor or sewage output. WISErg’s technology also provides customers with data and analytics to better understand drivers of waste and how to improve inventory management. Check out WISErg founder Larry LeSueur’s guest post ‘Upcycling Food Waste into Fertilizer to Catalyze a New Green Revolution‘.

Spoiler Alert

Similar to Zero Percent, Spoiler Alert offers a B2B marketplace for surplus food. The Boston-based startup connects retailers, producers and suppliers to charitable organizations, as well as companies that make fertilizer and animal feed from food scraps. It also offers a service that helps organizations find new buyers for their surplus food at a discounted price. Spoiler Alert’s app is currently free to use for users, but it aims to monetize by making commissions on food sales, as well as by offering a software-as-a-service subscription for businesses to help with accounting and tax recording for donations.

Re-Nuble

Re-Nuble wants to create a closed loop indoor agriculture system by converting food waste into liquid fertilizer. It works with community farms and restaurants to source food scraps. Using its proprietary technology, it then combines food scraps with plant based supplements to create 100% organic fertilizers that produce high yields for less than the chemical alternatives. Founder Tinia Pina will be speaking at our Food Waste Meetup on 10.21. RSVP here.

Hungry Harvest

Similar to Imperfect, Hungry Harvest offers a subscription service for “ugly” fruits and vegetables. The Maryland-based startup recovers surplus produce from farmers and wholesalers and delivers them to customers’ doors. For every delivery Hungry Harvest makes, it donates a healthy meal to someone in need via their network of partner food pantries and charitable organizations. It offers $15, $25 and $35 subscription boxes.

MOGO

MOGO aims to repurpose the 10 percent of food that the average restaurant has leftover every day. The app and web platform connect consumers to a network of restaurants that offer leftover food at a discounted price. Restaurants list their offerings and customers select their meal and pay through the platform. The Berkeley, CA-based startup is targeting quick service and fast casual restaurants. The platform is free for users now, but Mogo plans to monetize by charging restaurants a monthly fee depending on their sales generated through the app.

The post 10 Startups Reducing Food Waste One Byte At A Time appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A and Partnerships: August 2015

Brita Rosenheim — Wed, 30 Sep 2015 15:31:19 +0000

Global food tech investments dominated August, with two thirds of the funded companies based outside of the U.S. (representing 95% of the total capital raised). Total food tech and media funding for the month rounded out to approximately $950 million across 26 global companies, with a subset of eight U.S. companies garnering a combined investment of $44 million. There were four acquisitions with undisclosed values, all based in the U.S. and relatively early stage.

The broad international trends reflect the same hot sectors in the U.S. – food delivery, online ordering, ecommerce, restaurant platforms – and with five of the deals valued at more than $20 million, we are seeing the same shift towards expansion and scalability for the leaders of the pack. In August, the two largest deals were China-based companies, totaling $710 million of investment. In this context, China appears to be a cycle ahead of the U.S. in terms of maturing concepts, with an increasing number of companies scaling beyond U.S. benchmarks of reach and growth.

Meanwhile, as I discussed in May, India has begun to embrace food tech concepts, and entrepreneurs are churning out a steady number of new companies each month. While there are a handful of established brands in India, like BigBasket.com and Zomato (both recently reported to be valued at $1 billion), most players in the Indian food tech space are still in the early stages of market- and thesis-testing modes. As highlighted in the Economic Times, this evolving market is quickly becoming cluttered, and the “real test will come when they plan to scale in other geographies without comprising on quality.”

M&A

Reserve Acquires Set for Service. The New York-based provider of CRM systems for restaurants will allow Reserve to offer restaurants the ability to track customer feedback and details, such as reservation notes, dining habits, or allergies, in order to improve guest experience. Reserve, a provider of restaurant reservation and payment solutions, will continue to offer all Set for Service features to its existing clients while deciding which features to integrate with Reserve. Set for Service’s CEO and founder has joined Reserve as the head of restaurant product and New York General Manager.

Announced: 08/21/15 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2009

InstaCart Acquires Wedding Party. The Palo Alto, CA-based mobile app has been acquihired by InstaCart, which will take on six of Wedding Party’s employees, most of which are engineers. As both companies are data driven, the new hirers are expected to work on the consumer-facing aspects of its technology, the shopper-facing app, as well as preferred partner products including partner interface and catalogs. Reportedly, Wedding Party’s app will continue to exist into the near future.

Announced: 08/04/15 Terms: Not Disclosed Previous Investment: $1.0m Founded: August 2012

Vivonet Acquisitions Acquires Syrus Restaurant Information Services. The Columbus, OH-based SaaS back-office and above-store reporting solutions provider focuses on the North American restaurant industry, and will allow Vivonet, which provides omni-channel POS solutions, to offer its clients an integrated solution for labor, inventory, and ordering. Syrus’s SaaS platform integrates with most point of sale systems in the market, and serves over 2,500 restaurants.

Announced: 08/27/15 Terms: All Cash Transaction Previous Investment: Not Disclosed Founded: 1996

Rise Acquires HealthyOut. The New York-based mobile nutrition platform, which gives users recommendations on healthy dishes at local restaurants, will help Rise, a mobile platform that connects users with personal diet coaches, improve its services in helping users create a healthier diet. The company utilizes machine learning technology to process over 140,000 restaurant menus in the country. According to TechCrunch, the acquisition will also help Rise retain its competitive edge without having to invent a similar product.

Announced: 08/19/15 Terms: Not Disclosed Previous Investment: $1.2m Founded: 2013

FUNDING

Ele.me Raises $630m. The Shanghai-based food delivery service is an online platform that offers customer-to-customer meal ordering services, and also works as a communication platform between users and restaurants. According to Forbes, the deal has made Ele.me, which translates to “Are you hungry now?,” the fourth largest food ordering platform after Grubhub, Delivery Hero, and Just Eat. The company will use the funds to expand into more cities and build its own delivery network. As part of its investment in Ele.me, retailer Hualian will partner with Ele.me to deliveries from its supermarkets across the country.

Announced: 08/28/15 Valuation: $3 billion Stage: Series F Participating Institutional Investors: CITIC Capital Holdings (Lead), Hualian (Lead), JD.com, Sequoia Capital, Tencent Holdings Previous Investment: $455.0 million Founded: September 2008

iZettle Raises $67m. The Stockholm, Sweden-based provider of mobile point-of-sale solutions enables small businesses to provide mobile payment services through its card readers for smartphones and tablets. With the raise, the company announced its new project, iZettle Advance, a financing product that will allow iZettle customers to access extra capital as an advance on card sales. Upon approval into the iZettle Advance program, customers will receive funding within days, and paybacks occur automatically as a fraction of card sales. iZettle intends to use the funding towards development and expansion of the iZettle Advance project, as well as continued growth in existing and future markets.

Announced: 08/28/15 Stage: Series D Participating Institutional Investors: Intel Capital (Lead), Zouk Capital LLP (Lead), 83North, Creandum, Dawn Capital, Index Ventures, Northzone, Santander Innoventures Previous Investment: $108.8 million Founded: April 2010

Pronto Raises $1.6m. The London-based meal delivery service offers cooked meals using ingredients sourced from local producers. According to TechCrunch, Pronto differentiates its service from delivery giants by offering healthier versions of traditional British meals. Pronto currently has over 1,000 customers, and reports to have a large number of return customers. The company plans to use the funding to hire more personnel and start a marketing push for the first time.

Announced: 08/27/15 Stage: Seed Participating Institutional Investors: Playfair Capital, Seedcamp, London Co-Investment Fund, Ballpark Ventures Previous Investment: Not Disclosed Founded: 2014

Food Talk India Raises $500k. The Gurgaon, India-based online food community lets members read and share food experiences through real-time restaurant recommendations. Originally starting out as an invite-only social food forum on Facebook, the company currently has over 400,000 followers across various social media platforms, including Facebook, Instagram, Twitter and Viber. The company additionally offers in-person events in the form of curated social events. Funding will be used to launch its new product, a mobile app Food Talk Plus geared towards hyper-local dish discovery.

Announced: 08/26/15 Stage: Seed Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2014

Yogiyo Raises $35m. The Seoul, Korea-based food delivery service app was Korea’s first online food ordering platform, and now through strategic investment, represents a Korean brand of Delivery Hero. Although Korean competitor Baedaltong, was acquired by Delivery Hero last December, Delivery Hero has no immediate plans of merging YoGiYo and Baedaltong, as they each “have well established their own positions in the market.” With this new capital infusion, Yogiyo will focus on customer satisfaction through continued development and improvement to products and services.

Announced: 08/25/15 Stage: Venture Participating Investors: Delivery Hero Previous Investment: $23.6 million Founded: June 2012

EazyDiner Raises $3m. The Delhi, India-based restaurant reservation platform is offers real-time guaranteed restaurant reservations. The company features over 19,000 restaurant and bars, as well as over 1,000 critic reviews. Users receive deals and discounts with each reservation, and the company has a loyalty rewards program. The company will use the capital injection to expand into 12 cities in India by the end of 2016.

Announced: 08/25/15 Stage: Seed Participating Institutional Investors: Chrys Capital, DSG Consumer Partners, Saama Capita, Deepak Shahdadpuri, Gulpreet Kohli Previous Investment: Not Disclosed Founded: 2014

Jolly Food Fellow Raises $300k. The Ahmedabad, India-based mobile app provides food vendors operating through ecommerce platforms with analytics about their customers to apply customer target strategies. The startup currently offers data on customers, including what they eat, and the number of times they visit. The company has plans to add more analytics of customers to identify repetitive clients, which it claims will help food vendors monetize. Jolly Food Fellow has run prototypes across food retail outlets in Ahmedabad, and will use the cash infusion to expand into metro cities of Mumbai and Bengaluru.

Announced: 08/24/15 Stage: Angel Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2015

Sampler Raises $1m. The New York, NY and Toronto-based SaaS startup enables consumer packaged goods companies to distribute samples of their products through their own redistribution channels. Using Sampler’s technology platform, companies can offer samples to targeted users, who will then receive information about picking up samples via email and social media. The company states that Sampler’s targeted method of sample distribution to targeted customers guards against “Freebie Hunters,” and provide companies with demographic and feedback data to identify their customer base.

Announced: 08/21/15 Stage: Seed Participating Institutional Investors: Business Development Bank of Canada, David B Perkins, MaRS Investment Accelerator Fund Previous Investment: $0.6 million Founded: November 2013

RedMart Raises $26.7m. The Singapore-based online grocery retailer site enables users to browse and buy groceries, household essentials and related products. Funding will be used to support international expansion, the growth of its grocery and marketplace business, the launch of its On Demand Marketplace, and investment in its dry and fresh private label offering. TechCrunch notes that RedMart owns its own logistics and warehouse chain, which could facilitate venturing into other product categories.

Announced: 08/20/14 Stage: Series C Participating Institutional Investors: Far East Ventures, Garena, SoftBank Ventures Korea, Visionnaire Ventures Previous Investment: $33.0 million Founded: March 2011

Revel Systems Raises $13.5m. The San Francisco-based iPad-based point-of-sale system for grocery, retail and restaurant establishments includes front-end order entry, cash register and payment processing, plus a full suite of back-end products. Revel’s platform enables small- and medium-sized businesses, franchise operators and enterprises to access a full suite of operations and reporting features designed to help manage and grow their business. The Revel platform can connect to the internet via Ethernet, and is thus accessible to merchants who do not have Wi-Fi. The new funding will be used for global expansion and to support engagements within existing and new verticals.

Announced: 08/18/15 Valuation: Over $500 million Stage: Series C-3 Participating Institutional Investors: ROTH Capital Partners Previous Investment: $113.8 million Founded: September 2010

Bright Cellars Raises $1.8m. The Cambridge, MA-based online subscription wine retailer distributes personalized wines using a proprietary matching algorithm. The company develops individual preference profiles for new members through a wine quiz, which has questions including which type of chocolate they prefer, how they prefer their tea, and how adventurous they are with dining. Customers then receive a selection of wines that match their tastes, and can refine their preference profile by rating wines after drinking them. Bright Cellars plans to use the funding to build its platform and hire new team members.

Announced: 08/18/15 Stage: Seed Participating Institutional Investors: Angels on the Water, BrightStar Wisconsin Foundation, CSA Partners LLC, gener8tor Previous Investment: Not Disclosed Founded: 2014

Peach Raises $8m. The Seattle-based food delivery startup delivers lunches from local restaurants to office workers in Seattle and San Diego, providing a bulk-order boost to restaurants’ business during what would typically be slow periods. The company sends registered members a daily text with a lunch dish of the day as well as lite and vegetarian alternatives. The company has delivered over 400,000 meals since June 2014, and added catering services. Peach will use the capital injection to expand Boston and Washington D.C.

Announced: 08/18/15 Stage: Series A Participating Institutional Investors: Madrona Venture Group, Vulcan Capital Previous Investment: $2.8 million Founded: June 2014

Shadowfax Raises $300k. The Gurgaon, India-based on-demand hyperlocal delivery service enables delivery from local merchants to their customers. The company’s technological platform incorporates multiple modes of communication, as well as GPS tracking functions and automated algorithms to make its network efficient. Customers are charged on a pay-per-delivery basis depending on distance and level of service quality. Shadowfax plans to use the capital injections to expand into 10 more cities within the next year and grow its staff to more than 35 employees and 350 riders.

Announced: 08/17/15 Stage: Angel Participating Angel Investors: Kunal Bahl, Prashant Malik, Rohit Bansal, Zishaan Hayath Previous Investment: Not Disclosed Founded: 2015

MassBlurb Raises Angel Funding. The Mumbai, India-based startup provides social media marketing services to small and medium sized restaurants. The company’s marketing automation tool is a single dashboard for restaurants to manage their online presence and list their businesses on sites like Zomato and FoodPanda. MassBlurb will use the capital infusion to provide more features to its product offerings and expand across India and abroad.

Announced: 08/13/15 Stage: Angel Participating Angel Investors: Abhimanyu Munjal, Keshav Baljee, Vikram Chachra Previous Investment: Not Disclosed Founded: 2014

Big Basket Raises $50m. The Bangalore, India-based online grocery store is the largest in India. TechCrunch reports that BigBasket presently offers four daily time slots for delivery, but may launch one hour delivery after its acquisition of hyperlocal delivery startup Delyvr. The company is currently facing competition from other hyperlocal delivery services offering on demand delivery from nearby stores. BigBasket.com will apply the funding towards expansion, and has plans to open 10 new warehouses expand into 50 Tier II cities.

Announced: 08/12/15 Valuation: $1 billion Stage: Series C Participating Institutional Investors: Ascent Capital Group, Bessemer Venture Partners, Helion Venture Partners, Zodius Capital Previous Investment: $35.8 million Founded: October 2011

Mogl Raises $8m. The San Diego-based rewards and loyalty app allows users to gain cash-back rewards for spending money at partner restaurants and also provides the option to donate rewards to a fundraiser or transfer rewards into points toward airline flights, hotel stays and more. Offline merchants can create an offer to be displayed on the company’s network of participating websites and apps. Customers who would like to take the offer can link their debit or credit card through the participating website or app, and get rewarded when making a purchase offline. Mogl plans to use the funding to expand and apply its technology foundation to other industries, including gas stations, health-conscious grocery stores, clothing stores, and spas.

Announced: 08/11/15 Stage: Venture Round Participating Institutional Investors: Aequitas Capital, Avalon Ventures, Correlation Ventures, Monroe Capital, Moore Venture Partners, Sigma Partners Previous Investment: $26.8 million Founded: 2010

RainCan Raises $100k. The Pune, India-based provider of dairy, meat, bakery, fruits, and vegetables operates on a subscription-based service. RainCan earns a 10-15% margin on its products, and has partnered with distributors of Nestle, ITC and P&G. The proceeds will be used to help the company grow and increase orders from 100 a day to 500 a day.

Announced: 08/10/15 Stage: Angel Participating Angel Investors: Ajeet Khurana Previous Investment: Not Disclosed Founded: March 2000

Dinner Lab Raises $7m. The New Orleans-based membership-based dining club connects undiscovered chefs with interested diners by giving members access to pop-up dining events thrown in particular locations. The company hosts multiple dinners a month more than 30 cities. Locations include warehouses and helipads, and the food is prepared by chefs that may not be operating their own kitchen. Dinner Lab currently has over 25,000 members, and charges a yearly membership fee as well as a per meal fee should members decide to attend. The company intends to use the funding to expand operations across U.S. markets and its B2B solutions.

Announced: 08/06/15 Stage: Series A Participating Institutional Investors: James River Capital, Innovation Catalyst Previous Investment: $3.1 million Founded: August 2011

Green Blender Raises $900k. The New York-based smoothie ingredients subscription service sends customers pre-portioned ingredients to make smoothies at home. The company sends ingredients for ten smoothies, with five recipes, and claims to source ingredients from organic and local farms whenever possible. The funding will be used to support the company’s growth, through hiring, geographic expansion, partnerships, and marketing initiatives.

Announced: 08/06/15 Stage: Seed Participating Institutional Investors: FOOD-X, Point Nine Capital, SOSV Previous Investment: Not Disclosed Founded: 2014

Beat the Q Posse Group Raises $5m. The Sydney, Australia-based group is newly formed, comprised of three formerly separate companies Posse, Beat the Q, and E-Coffee Card. The company’s app Hey You enables customers to order from cafes en route, gain loyalty benefits, and connect with storeowners. Beat the Q Posse Group plans to use the funding for further product development and operation scaling. According to BRW, new features will include group ordering as well as beacon-enabled table service.

Announced: 08/04/15 Stage: Series A Participating Institutional Investors: Reinventure Previous Investment: Not Disclosed Founded: 2011

Meal Box Raises $3.6m. The Istanbul, Turkey-based on-demand meal delivery service offers traditional home-cooked style Turkish food. According to TechCrunch, Meal Box’s offering is in contrast to that of most meal delivery services in Turkey, which serve fast food or street food. Meal Box operates its own centralized kitchen and has a network of delivery centers throughout the cities, enabling the company to ensure delivery within 30 minutes. The company has plans to expand to Ankara and other major cities by the end of the year.

Announced: 08/03/15 Stage: Venture Round Participating Institutional Investors: Aslanoba Capital Previous Investment: $3.6 million Founded: 2014

IOrderFresh Raises $1m. The Delhi, India-based mobile food and grocery retailer caters to customers in and around the National Capital Region. The company does not store inventory for retail, and instead procures products from wholesale retailers the day of delivery. The cash infusion will be used for technology development, increasing the supply chain, and customer acquisition and services.

Announced: 08/01/15 Stage: Seed Participating Institutional Investors: Best Foodworks (lead) Previous Investment: Not Disclosed Founded: 2013

Cake Raises $2.2m. The London-based mobile payment platform lets users pay or split the bill to their preference at restaurant and bars. Cake currently has a network of over 20 registered businesses and expects to expand to 100 businesses by the end of 2015. Funding will be used to support growth in London and Los Angeles.

Closed: 08/01/15 Stage: Equity Crowdfunding Participating Institutional Investors: Not Disclosed Previous Investment: $1 million Founded: February 2014

Jiuxian Raises $80m. The Beijing-based online alcohol retailer is the largest in China. In addition to its core business of alcohol retail, Jiuxian has developed four other business segments, including integrated branding services, on demand delivery service services, creation of customized brands for online sales channels, and online special offers. The funding makes Jiuxian China’s tenth best funded startup, and part of the new funding for Jiuxian will go towards growing a spin-off, on-demand wine and beer delivery service Jiukuaidao, which taps local brick-and-mortar stores to deliver to buyers in their area. Funding will also be used towards expansion of the company’s market share of online retail and line of customized brands.

Announced: 07/31/15 Valuation: $1.05 billion Stage: Series G Participating Institutional Investors: Merrysunny Wealth (lead) Previous Investment: $182.5 million Founded: 2009

Improvonia Raises $4m. The Washington, DC-based mobile and web-based communication platform connects buyers and sellers to improve communication and streamline the ordering process in the hospitality industry. Restaurants that use the service can place all their orders to all their suppliers at once. The company will apply the funding towards expansion to new cities, hiring more user facing employees, and building out the ordering platform.

Announced: 07/31/15 Stage: Series A Participating Institutional Investors: BlueRun Ventures Previous Investment: Not Disclosed Founded: July 2014

Opinio Raises $1.3m. The Bangalore-based last mile delivery service connects customers with restaurants, grocers, laundry services, and pharmacies. The startup is currently processing over 1,000 orders daily, and is available in seven areas within Bangalore. Opinio has plans to expand into more cities, and funding will be used to sustain the company for another 4 to 5 months as it plans to raise another round.

Announced: 07/28/15 Stage: Seed Participating Institutional Investors: Accel, TraxcnLabs Previous Investment: Not Disclosed Founded: January 2015

PARTNERSHIPS

Focus Brands Partners with Postmates to launch on-demand delivery service for the six foodservice chains in its portfolio, including Auntie Anne’s Pretzels, Carvel, Cinnabon, McAlister’s Deli, Moe’s Southwest Grill, and Schlotzsky’s.

POS on Cloud Partners with Clutch to offer Clutch’s suite of customer intelligence and engagement solutions to its network of merchants.

Google Partners with ASOS and Munchery to promote its music station.

Subway Partners with PayPal to let people pay via PayPal when ordering from its mobile app.

Revel Systems Partners with Zapper to let restaurants activate Zapper as an additional payment option for customers.

Peapod Partners with FarmLogix to launch Pea Pod Local Farm Box, which delivers local seasonal produce to customers.

CircleUp Partners with Amazon Launchpad to enhance consumer discoverability for food entrepreneurs in CircleUp’s portfolio.

INDUSTRY LANDSCAPE

Check out the 2014 Annual Report and last month’s round-up.

The post Food Tech Media Startup Funding, M&A and Partnerships: August 2015 appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A and Partnerships: July 2015

Brita Rosenheim — Tue, 01 Sep 2015 15:01:10 +0000

July was exceptionally active on the fundraising front compared to last year, with 23 deals totaling $318 million* in 2015 compared to just $75 million over 10 deals last year during the same month. This cash influx continued to fuel the progression towards a maturing industry, with about a third of all the deals (globally), and half of U.S. deals, sized at least $20 million.

On the other end of the spectrum, three of the ten seed stage deals were based in the U.S., averaging $2.1 million per deal, while the remaining international seed deals were primarily based in India, averaging $300k per deal.

M&A activity for the month included four acquisitions of undisclosed value, which is less substantial than last year due to a remarkable month in 2014 (six transaction totaling over $660 million in July 2014). I don’t think this signals any major shift in the strategic market. Quite the contrary in fact, as I have mentioned a number of times, I believe we are in store for some significant consolidation in the coming year.

As has been the case seemingly every month, delivery was dominant, with 61% of deals (and 66% of cash) invested into on-demand or convenience-economy concepts, mainly around the meal and restaurant category. The remaining majority of deals were also focused on the restaurant category, ranging from reviews to loyalty and marketing to payment.

*Excludes CircleUp’s new $22 million growth fund, as those funds did not go towards the company.

M&A

Benseron IT acquires Restajet.com. Benseron IT, a developer of POS systems, will integrate the Naples, Florida-based provider of custom Android and iOS apps for restaurants with its Bevo POS system in order to futher streamline the order process. RestaJet’s apps offer reservation services, customer feedback, and push notification features, as well as online ordering capabilities for franchises.

Announced: 07/23/15 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2014

Groupon Acquires OrderUp. The Baltimore, MD-based online and mobile food ordering and delivery service will bring expertise in food ordering and delivery to Groupon, and significantly boost its presence in the $70 billion sector by creating “an online and mobile food ordering marketplace of significant size and scale” while also providing opportunities for inventory cross-promotion, according to the Company. As TechCrunch notes, Groupon’s reach and ability to meet demand at large scales will enable OrderUp to grow at an accelerated pace and further expand in targeted markets. OrderUp is currently available in 40 markets throughout the U.S., focusing on those with high student populations.

Announced: 07/16/15 Terms: Not Disclosed Previous Investment: $10.0m Founded: September 2009

Private Investors Acquire Yeti. The Los Angeles-based local discovery app fosters conversation with a local focus. Nicknamed the “Tinder for places,” Yeti presents users with a series of photo cards with topics based on their location, giving users the option to swipe left to pass on a topic or swipe right to join in on a conversation. According to LA Business Journal, Yeti faced the choice to try to raise a large funding round to acquire more users or seek acquisition. The company stated that is decided to sell to a small group of private investors (JA Partners and Edgewater Ventures) so that it can continue to develop and retain the original mission of the app versus likely sunsetting the app if it were acquired by a larger tech company. Yeti will operate under a new CEO following the acquisition, and may develop more curated local recommendations.

Announced: 07/16/15 Terms: Not Disclosed Previous Investment: $875k Founded: June 2014

Meredith Acquires Grocery Server (Qponix). The Bainbridge Island, WA-based search and shopping engine, which targets customers using hyperlocal digital advertising for consumer packaged goods and grocery retail outlets, is part of Meredith’s strategy to drive digital and cross-platform growth, particularly withing the AllRecipes platform. Grocery Server, which has been a client of Meredith’s for some time, developed its technology in response to the shifting behaviors of mobile-equipped, value-minded shoppers and delivers product offers using shoppers’ recent mobile activity. The women’s interest publisher Meredith has used Grocery Server’s services in the past year, and as part of the acquisition, Grocery Server will supply Meredith with grocery data as well as nearly 150,000 monthly localized advertising specials in every residential zip code in the US.

Announced: 07/13/15 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: August 2010 (as joint venture between Qponix and MyGroceryDeals.com)

FUNDING

Noodle Play raises $160k. The Mumbai-based online ordering startup serves delivery-only Chinese food made in its own kitchens and guarantees delivery within 29 minutes. The brand is owned by Lollypop Foods Pvt Ltd and currently operates in five locations in Mumbai. Noodle Play will use the capital injection to expand its delivery service and has plans to open delivery outposts in over 50 locations in Mumbai by 2016. Eventually, the company plans to expand its services into other metropolitan areas.

Announced: 07/31/2015 Stage: Angel Participating Angel Investors: Gautam Sinha, Elliot Stechman, Ambarish Ray Previous Investment: Not Disclosed Founded: 2012

GoButler Raises $8m. The New York-based on-demand startup offers a free, SMS-based personal concierge. Users can text the company to request a variety of services including food delivery, travel bookings and restaurant reservations. Customers’ ordering history and preferences are attached to their profile so that GoButler personal assistants, called Heroes, can see their preferences and use existing on-demand apps and e-commerce sites to provide its service. The company, founded by former Rocket Internet executives, believes its free service differentiates it from competitors and plans to make a profit by building an advertising network around customer data. The service is currently available in the United States, Canada, the United Kingdom, Germany, Austria and Switzerland. The capital injection will be used towards to fund a marketing campaign.

Announced: 07/30/2015 Stage: Series A Participating Institutional Investors: General Catalyst Partners (lead), BoxGroup, Cherry Ventures, Lakestar, Global Founders Capital, Slow Ventures, Sound Ventures Previous Investment: Not Disclosed Founded: February 2015

Thrive Market Raises $30m. The Los Angeles-based wholesale buying club for health-conscious products operates like a hybrid of Whole Foods and Costco. For a $60 annual membership fee, users can access natural or organic products across a variety of verticals, such as food, home goods, and baby supplies at or below the price of the conventional equivalent. In the first eight months from launch, the company gained over 100,000 active members, 1,000,000 registered users, and generated $5mm in monthly sales. The company has also partnered with a number of non-profits to offer free memberships to families in need for every paid membership on the platform. Thrive Market will use the funding to expand its operations, with the opening of a new distribution center on the East Coast and developing its mobile app.

Announced: 07/30/2015 Stage: Series A Participating Institutional Investors: Greycroft (lead), Scripps Network, CAVU, Powerplant Ventures Previous Investment: $9 million Founded: 2013

Delight Foods Raises $156k. The Bangalore-based food startup enables users to purchase famous Indian food brands from across the country. The venture works with over 60 brands sourced from 11 cities, allowing customers have delicacies particular to a city delivered to their homes. The venture is logistics heavy, and has packing centers in all the cities in which it operates. Funding will be used to make new hires, enter into new food categories, expand its location, and launch a marketing campaign in Bangalore.

Announced: 07/27/2015 Stage: Seed Participating Institutional Investors: MAPE Advisory Group, Fireside Ventures Previous Investment: Not Disclosed Founded: December 2014

ShopKeep Raises $60m. The New York-based point-of-sale solution builds point-of-sale software for mobile devices and tablets. The company’s platform additionally offers customer marketing, inventory and staff management, back-end reporting and detailed analytics. The Wall Street Journal attributes the traction tablet-based point-of-sales systems are gaining to the proliferation of broadband internet that makes cloud software available at merchant locations. ShopKeep will use the funding towards growing its overall customer base in the US, strengthening industry partnerships, and launch international operations, starting with the UK.

Announced: 07/28/15 Stage: Series D Participating Institutional Investors: Activant Capital Previous Investment: $37.5 million Founded: October 2008

Deliveroo Raises $70m. The London-based restaurant delivery service focuses on marketing, selling and delivering meals from premium restaurants that do not usually offer takeout. Deliveroo targets affluent cities with high population density and an abundance of restaurants, currently serving 18 cities and towns across the UK as well as Paris, Berlin, and Dublin. Funding will be used towards expansion into new cities in Europe, the Middle East, and Asia, marketing on the internet, billboard, and TV, in addition to hiring managing and product engineering staff.

Announced: 07/27/15 Stage: Series B Participating Institutional Investors: Greenoaks Capital (Lead), Index Ventures (Lead), Accel Partners, Hoxton Ventures Previous Investment: $29.6 million Founded: February 2013

Homer Logistics Raises $2m. The New York-based food delivery service for restaurants combines orders that originate in the same area and that head in the same direction to eliminate empty-handed return trips and make delivery more efficient. Additionally, Homer Logistics provides software to restaurants to receive and analyze incoming orders from a variety of platforms. The company reports that is has completed over 6,000 orders in Manhattan in June 2015.

Announced: 07/21/15 Stage: Seed Participating Institutional Investors: Brooklyn Bridge Ventures, Two Sigma Ventures, Vayner RSE, Rugged VC, Haystack Fund II Previous Investment: Not Disclosed Founded: 2014

Flypay raises $10.7m. The London-based mobile payment startup allows users to check, split and pay their restaurant bill from their smartphones by scanning an on-table QR code/NFC tag to pull up the bill. Since its launch, Flypay has added other solutions catering to the hospitality industry, including order and collect, order at table, pay at bar, and customer loyalty features. Notably, TimeOut – a media brand – appears to be positioning itself as a strategic investor, calling itself a “global multimedia discovery platform”, with plans to help enable global deployment of Flypay’s solution.

Announced: 07/16/15 Stage: Series A Participating Institutional Investors: TimeOut Previous Investment: $1.9m Founded: February 2013

Plated Raises $35m. The New York-based subscription service for ready-to-cook meal ingredients and recipes markets itself as a premium meal kit delivery service. Plated distinguishes itself by offering sustainably sourced goods, with a slightly higher price-point per meal than competitors. To that end, Plated has invested in farming and transportation to ensure that its products are sustainably produced and shipped in sustainable packaging as well as mobile technology. Funding will be used to develop a low-waste supply chain and new regional fulfillment centers.

Announced: 07/16/15 Stage: Series B Participating Institutional Investors: Greycroft Partners, Formation 8 Previous Investment: $21.4 million Founded: January 2012

Main Street Hub Raises $25. The Austin, TX-based marketing platform for small-businesses uses data and analytics to help merchants acquire and maintain customers. The company’s “do-it-for you” local marketing platform offers an integrated social, web, and email marketing solution designed to help local restaurants and merchants drive more customers. The funding will provide the company with resources to grow, and facilitate the introduction of new products and addition of 300 employees in its Austin, TX, and New York offices by the end of 2015.

Announced: 07/16/15 Valuation: $216 million Stage: Series C Participating Institutional Investors: Vista Equity Partners Previous Investment: $40.9 million Founded: June 2009

Freshly Raises $7m. The New York-based meal delivery service offers meals inspired by the paleo diet. The meals are prepared by chefs employed by Freshly and then packaged and delivered to customers. The company primarily delivers in Arizona and California, and has shipped over 200,000 in its first five months of operation. Funding will be used for expansion to cover 80% of the country with new production and logistics facilities.

Announced: 07/15/15 Stage: Series A Participating Institutional Investors Highland Capital Partners (lead), White Star Capital Previous Investment: $2.0 million Founded: 2012

Spoon University Raises $2m. The New York based food network for millennials offers localized and more general stories about food, wellness, and lifestyle. Content on the website is produced by college students, who volunteer to share recipes, health and lifestyle stories, restaurant reviews, BuzzFeed-esque quizzes, and other food-related content. The website has a national page as well as individualized verticals for participating college campuses. Spoon University is different from similar platforms in that members who want to contribute content receive training in writing headlines, using Facebook to promote their content, and managing analytics tools to see how well their contributions are performing. Funding will be used towards expanding its network of contributors and creating more video content.

Announced: 07/14/15 Stage: Seed Participating Institutional Investors: BBG Ventures, BoxGroup Partners, Lerer Hippeau Ventures, Math Venture Partners, SoftTech VC, Vayner/RSE Previous Investment: $500k Founded: September 2013

Satvacart Raises Seed Funding. The Gurgaon-based grocery delivery startup offers over 4,000 curated products across grocery, fruits and vegetables, personal care, household essentials, and baby care through its online platform. Satvacart plans to use the funding to scale up its operations and expand into six new cities by the end of the fiscal year.

Announced: 07/14/15 Stage: Seed Participating Institutional Investors Palaash Ventures Previous Investment: Not Disclosed Founded: 2014

Zesty Raises $17m. The San Francisco-based office catering service differentiates itself by delivering meals from local restaurants cooked in a more health conscious way or created off-menu. Meals come with ingredients and nutrition facts, and Zesty works with restaurants to ensure that meals do not contain added sugar or MSG. In return for handling all the logistics of delivery and scheduling for the restaurants, and Zesty receives a fraction of the catering revenue. Zesty will use the investment to fund expansion into new markets.

Announced: 07/14/15 Stage: Series A Participating Institutional Investors: Index Ventures (lead), Founders Fund, Forerunner Ventures Previous Investment: $3.7 million Founded: November 2013

CircleUp Raises $22m Growth Fund. The San Francisco-based equity-based crowdfunding platform helps accredited investors find free access to private consumer-focused (mainly within consumer products and retail) investments, making it easier for investors to identify, diligence, and back companies they understand. Funding will be used to launch its Consumer Growth Fund, which will be used to match investments in consumer brands made through its crowdfunding platform. Whereas CircleUp’s traditional business model charges 5 percent commission tied to funds raised, the new Consumer Growth Fund will charge investors and also take both performance and management fees between 2 and 20 percent. According to TechCrunch, the average company funded through CircleUp has witnessed 90 percent growth per year after raising funds, but so far there have been no exits through sales or other liquidity events.

Announced: 07/13/15 CircleUp’s Investment To-Date (excluding this investment fund): $23.0m Founded: October 2011

Grofers Raises $36m. The Gurgaon, India-based online mobile delivery app delivers produce and other goods from local stores on-demand. Customers can choose from a selection of over 20,000 items, including essentials like diapers and personal grooming items and have purchases delivered within 90 minutes. The Economic Times notes that the deal increased the company’s valuation threefold. Funding will be used towards marketing and expanding its offerings in more categories and geographies.

Announced: 07/11/15 Valuation: $115 million Stage: Series C Participating Institutional Investors: Sequoia Capital, Tiger Global Previous Investment: $45.5 million Founded: December 2013

Eatlo Raises Angel Funding (“under $1m”). The Bangalore-based mobile platform allows users to order food and have it delivered within 20 minutes. The company currently delivers food from across seven locations in the city and operates with a network of seven chefs and 10 fulfillment centers, claiming to serve 1,200 orders daily. Funding will be used to scale up the business by increasing its delivery locations to 20, hiring 100 employees, and improving its back-end technology.

Announced: 07/07/2015 Stage: Angel Participating Institutional Investors: Globevestor, Powai Lake Ventures Previous Investment: Not Disclosed Founded: 2014

Foody Raises Undisclosed Series B and Series C. The Ho Chi Minh City, Vietnam-based startup initially launched as a gourmet search and user review media platform has since diversified its services to include table booking and food delivery. TechinAsia reports that Foody aims to become to top platform in Vietnam and is interested in expanding into other countries in Southeast Asia using a hyperlocal strategy. Stunningly, the company announced both a Series B and Series C in the same month! Foody will use to funding to accelerate growth in user number, content, and expand its booking and delivery services as well as into new markets in Southeast Asia, beginning with Indonesia.

Announced: 07/07/15 and 7/28/15 Stage: Series B Participating Institutional Investors: Garena (Series B), Tiger Global (Series C) Previous Investment: Not Disclosed Founded: June 2012

Quinto Raises Seed Funding. The Pune, India-based personalized recommendation app lets users discover dishes using crowdsourced ratings. Quinto differentiates itself from similar services by emphasizing ratings of particular dishes instead of the restaurant as a whole. Funding will be used to build up Quinto’ engineering and marketing teams, in addition to improving and expanding the recommendation engine.

Announced: 07/05/15 Stage: Seed Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2012

Berry Kitchen Raises $1.25m. The Jakarta, Indonesia-based meal delivery service employs a ‘bento model,’ allowing users to create their own lunch or dinner menus by combining different food options. Berry Kitchen claims that since its launch, it has served more than 245,000 boxes to 7,000 customers, who purchase credits in advance which can be redeemed for meals. The new capital will be used towards marketing, expanding its operational and technology team, improving its tech platform, and building two kitchens to serve orders in the Jakarta area.

Announced: 07/05/15 Stage: Seed Participating Institutional Investors: Sovereign’s Capital (lead), East Ventures Previous Investment: Not Disclosed Founded: 2012

1to1Fitness Raises Seed Funding. The Noida, India-based lifestyle startup aims to optimize healthy nutrition and lifestyle needs of the modern day professional. The company’s online platform features diet plans, work outs, health assessment, online lifestyle coaching, and live yoga classes. As part of the investment 1to1Fitness will receive consulting from investor SeedSphere.

Announced: 07/09/15 Stage: Seed Participating Institutional Investors: SeedSphere Previous Investment: Not Disclosed Founded: Not Disclosed

Adored Raises $2.3m. The Manchester, New Hampshire-based loyalty experience platform beams personalized offers to customers in restaurants, cafes, and resorts by employing iBeacon transmitter technologies. Adored’s app is available on iOS and Android platforms and tracks customer preferences from phones behavior, without requiring information such as names and emails that may provoke privacy concerns. For merchants, Adore’s customer analytics could provide insight for increasing sales and promoting engagement. The company intends to use the funds to double its team, in particular the engineering and sales teams.

Announced: 07/08/15 Stage: Seed Participating Institutional Investors: Borealis Ventures, Boston Seed Capital, Kepha Partners, Matrix Partners Previous Investment: Not Disclosed Founded: September 2014

Chope Raises $8m. The Singapore-based restaurant reservation platform sends users instant reservation confirmation emails after users log on to the service to place a reservation at their desired restaurant. The company recently expanded to become a restaurant management and marketing platform and derives its revenues equally between a monthly fee for its operations management features and booking fees from its reservation service. Funding will enable Chope to add new features, including the development of an app for the Apple Watch and “What’s Happening,” a feature to enable diners to track the restaurants at which their friends have dined.

Announced: 06/30/15 Stage: Seed Participating Institutional Investors: F&H Fund Management (Lead), NSI Ventures (Lead), DSG Consumer Partners, Frontier Ventures, Singapore Press Holdings Previous Investment: $3.4 million Founded: June 2011

AAGAAR Raises Angel Funding. The New Delhi-based hyperlocal delivery service provides fresh and daily essentials, including groceries and personal care products, to customers’ doorsteps. The company noted that the current round helped the company set up as well as validated the process and infrastructure for the company’s services. The funding will be used to re-structure AAGARR’s portal, augment warehouse infrastructure, and improve delivery setup.

Announced: 06/29/15 Stage: Angel Participating Investors: Not Disclosed Previous Investment: Not Disclosed Founded: November 2014

PARTNERSHIPS

Drizly Partners with BlueConic to create a more individualized experience across commerce and content when shopping for beer, wine, and liquor.

Revel Systems Partners with Zapper to integrate payment solutions so that restaurants using Revel Systems have an additional payment option for customers.

7-Eleven Partners with Postmates to launch one-hour delivery service.

TripHobo Partners with Zomato to provide users with destination based restaurant suggestions.

Foursquare Partners with Uber to introduce ride ordering services within Foursquare’s app.

USDA Partners with Microsoft to create $60,000 innovation challenge to spur the creation of tech tools for analyzing food supply data.

Crisp Media Partners with Reader’s Digest to connect consumer packaged goods marketers and retailers with consumers.

INDUSTRY LANDSCAPE

Check out the 2014 Annual Report and last month’s round-up.

The post Food Tech Media Startup Funding, M&A and Partnerships: July 2015 appeared first on Food+Tech Connect.

Global Online Grocery Market To Grow To €80B By 2018

Guest — Tue, 18 Aug 2015 19:04:46 +0000

Guest post by Algirdas Desceras, online marketer at Syndy, an online platform for product content exchange between retailers and suppliers.

Grocery is one of the largest segments in global retail. Valued at €3 trillion, it is three times bigger than the global apparel industry. Recently, grocery retail has gone through a number of changes, but the adoption of the digital channel has been by far the most impactful.

With new online grocery (e-grocery) ventures popping up around the globe and traditional retail chains making huge investments into developing their online presences, e-commerce is expected to play an increasingly important role in grocery retail. The global online grocery market is growing fast and is expected to reach €80B by 2018.

In our latest report, The State of Online Grocery Retail in Europe 2015, Syndy explores e-grocery growth and trends, as well as future market developments.

Online Grocery Market Growing at Double Digits

Syndy researched the four most advanced European markets, as well as the US, to find out the acceleration rate of the e-grocery sector. All of the researched markets showed remarkable double-digit growth of online grocery sales, making it the fastest growing channel in grocery retail across 2014.

The Dutch market grew the most at 55 percent, while the French market grew the slowest, still reaching an impressive 25 percent growth nonetheless. The German, U.S. and British markets grew by 38 percent, 27 percent and 26 percent respectively. Our research also revealed that the U.S. has the largest overall e-grocery market (€14.9 billion), whereas e-grocery in the UK has the largest share, 4.4 percent of the grocery retail market.

New Entrants and Unique Partnerships Stir up Competitive Landscape

According to our research, competition between online grocery retailers increased throughout the last year. New players entered the arena, and established players pushed innovation and operational excellence to craft attractive online offerings.

Some of the big traditional retailers looked for new ways to bypass costly IT and operational developments. They did so by outsourcing key technological and business capabilities to third parties. For example, British retail giant Morrisons partnered with pure player Ocado to benefit from their 15 years of e-commerce and logistics experience. The partnership was also hugely beneficial to Ocado because it created an additional stream of revenue which lead to their first profitable year.

In the US, Whole Foods teamed up with grocery delivery startup Instacart to gain from their mobile expertise without developing its own delivery capacities. Following a successful pilot scheme, the Whole Foods Instacart partnership is now being expanded across the US.

The Last Mile: Still a Big Headache for Online Retailers

Across 2014, most traditional retailers chose the pick-up point delivery model (a model where consumers collect pre-ordered products at designated pick-up locations) for their online roll-outs. At the same time, established players grew their pick-up point networks to expand their online service reach to less populated areas.

For brick-and-mortar retailers, the pick-up point model makes most economic sense, yet consumers strongly prefer home delivery (80 percent) since the “convenience factor” is the key driver of online grocery shopping. Retailers are therefore searching for new ways to offer home delivery at minimal costs, or even for free.

Membership schemes, like Amazon Prime, give consumers access to unlimited home delivery at a fixed monthly fee. These plans are growing in popularity and seem to offer retailers a way of satisfying consumers and generating a profit for the business.

New Online Challenges for CPG Brands

While online retailers are pushing the bounds of operations, logistics and merchandising in e-grocery, CPG companies face the challenge of effectively marketing their products in this new channel. By interviewing CPG and Retail experts, Syndy found that manufacturers will need a thorough understanding of online shopper needs, which are not always correctly addressed at the moment.

Moreover, it seems that online and offline consumer journeys often mix and merge. Therefore, it is important for CPG companies to deploy integrated online, in-store and traditional marketing tactics to get the best results, i.e. an omnichannel approach to marketing CPG products.

Another challenge that CPG companies face is controlling product content online. While a number of retailers have been selling CPG products online for years, the exchange of rich digital product content between suppliers and retailers is not effective. As a result, online retailers display incorrect product content to the consumers, harming supplier’s brand value as a consequence. CPG companies need to take more initiative in tackling this problem.

What Does the Future Hold for Online Grocery?

Syndy believes that e-grocery will continue to flourish across Europe and the US for multiple reasons. While the global online grocery market showed remarkable growth over 2014, it is lagging behind other product categories such as electronics and books. While we do not expect groceries to be as popular online as the aforementioned product categories, there is still plenty of space for e-grocery growth.

Additionally, pure players have been testing and pivoting their business models and many seem to have crafted strong business propositions. Companies such as AmazonFresh (US), Instacart (US) and Ocado (UK) have gained instrumental know-how and put well-polished processes in place. Expansion, not only in their home markets but also internationally, is very likely.

Regarding the growing competition from discounters: traditional retailers such as Walmart and Tesco will keep investing into their omnichannel initiatives. Consumers seeking value for money and convenience will increasingly adopt this way of shopping and drive growth of the online channel. Finally, with venture capital firms pouring millions into food tech business, more digital ventures and innovations, like Internet of Things appliances, will emerge that will encourage more and more customers to make online grocery shopping an integral part of their lives.

To learn more about the state of online grocery retail in Europe and the US, you can download our full report here.

Algirdas Desceras is one of the authors of The State of Online Grocery Retail in Europe 2015. He has a Master’s degree in Business Administration and currently works as an online marketer at Syndy. Algirdas is passionate about CPG products and their future in the online channel.

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The post Global Online Grocery Market To Grow To €80B By 2018 appeared first on Food+Tech Connect.

Food Tech Media Startup Funding, M&A and Partnerships: June 2015

Brita Rosenheim — Fri, 31 Jul 2015 16:55:47 +0000

This monthly column highlights the most interesting acquisitions, financings and partnerships within the Food Tech & Media ecosystem – digital content, social, local, mobile, grocery, e-commerce, delivery, ordering, payments, marketing and analytics – to give you insights into the latest funding and growth trends.

There were a ton deals in June, with eleven acquisitions (mainly small) and sixteen fundraises (all shapes and sizes), rounding out to over $460 million of global investment into the food tech and media space. As we have been seeing for a while now, delivery and online ordering were represented in spades, but we also saw an influx of digital content deals – ranging from recipes to restaurants – which hasn’t been the case in a while. The average size between the Series A and Series B rounds was $9.4 million, and, signaling that sectors within this industry are increasingly crossing the threshold into the growth equity category, there were five deals sized over $20 million.

While we are far from IPO-mania, the industry is very rapidly accumulating well-capitalized players, and new talk of IPOs among pure-play food tech companies has begun to surface (vs. tech incumbents with a wider focus like Yelp, Coupons.com, Groupon, etc.).

As Delivery Hero padded up with $110 million from “leading public market investors” in June, some have speculated it may be the company’s last private round ahead of going public. Also from the Rocket Internet portfolio, it has been reported that HelloFresh may be considering an initial public offering this year and is in dialogue with Morgan Stanley and Goldman Sachs about advising. On the (much) smaller side of the spectrum, the Wall Street Journal noted that TabbedOut’s recent funding in June would “be its final funding round before going public,” however it is unclear if that would be a near-term event (I would be surprised if that is the case). And while not a pure play food tech company, Square has reportedly filed confidentially for an IPO, which could provide additional acquisition currency to layer in additional services within the local SMB market, many of which are restaurants and food retailers.

In the beginning of 2014 I framed the expansion into the public markets as a “rising tide” phenomenon for startups, in that investors will continue to increase their stake into this sector as the opportunity for successful exits (via acquisition) are more prominent. However now that the industry has begun to mature, there is substantially more buy-in from investors, consumers and businesses on the food tech space.

And as we are now witnessing, great success is no longer necessarily tied to riding on a larger tech company’s coattails – which is quite a shift in dynamics from even 18 months ago. Acquisitions will still be a critical component to a thriving ecosystem however, as many of the current products and technologies – especially those focused on fragmented markets – may find they can create the most impact by joining a larger platform with more substantial resources.

M&A

Love With Food Acquires Taste Guru. The Denver-based gluten-free subscription box service delivers to customers a monthly box of gluten free snacks, and will enable Love With Food to expand its customers and offerings in the growing market. Taste Guru is the second gluten-free themed acquisition in the past year by Love With Food, a snack discovery service focusing on organic, all-natural products.

Announced: 06/24/15 Terms: Not Disclosed Previous Investment: $120k Founded: July 2012

Deliv Acquires WeDeliver. The Chicago-based same day delivery platform, which provides delivery local services for over 100 Chicago-area companies, will help Deliv compete in the same-day delivery space as it continues towards national expansion. Following the acquisition, WeDeliver’s brand will be discontinued as its merchants – including grocery and food retailers – and “delivery specialists” transition to Deliv’s platform. As I have discussed a number of times, The Chicago Tribune notes that as the same-day delivery space continues to heat up with both small and large participants (including Amazon, Google and Postmates), consolidation appears to be an obvious next step.

Announced: 06/24/15 Terms: Not Disclosed Previous Investment: $800k Founded: January 2013

Hello Curry Acquires Fire42. The Hyderabad, India-based restaurant management platform provides restaurants with inventory management, order management, trend tracking, loyalty and billing services, among other tools, and will allow Hello Curry to introduce real-time analytics and point of sale (POS) services to Hello Curry’s technology as it gears towards expansion. Medianama reports that it is unclear whether Fire42 will continue to offer its services independently.

Announced: 06/22/15 Terms: Stock and cash Previous Investment: Not Disclosed Founded: 2012

Farmhouse Delivery Acquires Bento Picnic. The Austin-based startup prepares lunchbox meal kits modeled after the bento tradition of Japanese homemakers and will enable Farmhouse Delivery, which provides in-state groceries, to expand its brand beyond grocery delivery and cater to customers such as local office workers.

Announced: 06/19/15 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: 2015

Groupon acquires Venuelabs. The Seattle-based provider of location-based monitoring, measurement and engagement solutions allows local retailers to examine aggregated social media chatter about their businesses across dozens of platforms, including Foursquare, Twitter or Instagram. With the acquisition, Groupon will integrate Venuelab’s technology into its “Pages” service, where customers visiting Groupon can find information about the merchant.

Announced: 06/18/15 Terms: Not Disclosed Previous Investment: $2.6 million Founded: March 2009

Cookpad acquires Cucumbertown. The Mountain View, CA and Bangalore-based recipes blog publishing network enables users to host their own food blogs, engage with fans, build an identity and, with the acquisition, hopes to help them monetize their recipes. The acquisition by the Tokyo-based recipe network Cookpad will enable Cucumbertown to expand to international markets and monetize the business through a “Tumbler model” of personalized themes and domains. The Economic Times further reports that Cucumbertown and Cookpad will work together on building a global culinary map.

Announced: 06/16/15 Terms: “Multi-millions” Previous Investment: $300k Founded: October 2012

Tasting Table Acquires Flavour. The New York-based restaurant discovery app which mines social graph data to find noteworthy restaurants in addition to collecting reviews from critics, bloggers, and industry experts, will help Tasting Table provide restaurant recommendations that are more personalized and curated. Users can search by city, by collection, or by dish, and make reservations through a connection with OpenTable. Flavour is available in eight cities, and Tasting Table plans to collaborate with Flavour’s team of developers, engineers, and designers to enrich user experience through expanding the app’s services.

Announced: 06/16/15 Terms: Not Disclosed Previous Investment: $1.1 million Founded: 2014

BigBasket Acquires Delyver. The Bangalore-based hyper local ecommerce platform. which uses its own logistics technology to connect offline retailers to customers in the neighborhood, will manage BigBasket’s new launch of one-hour delivery service in Bangalore. Delyver will retain its brand name and function as an independent entity. In addition, BigBasket will provide funds for Delyver to expand into eight major cities and 50 tier-II cities, and increase team size in existing cities.

Announced: 06/12/15 Terms: cash and stock Previous Investment: $1 million Founded: March 2010

Brit + Co Acquires Snapguide. The San Francisco-based publishing system lets people create step-by-step mobile guides, and will be renamed as “Snapguide by Brit + Co.” Brit + Co, an online lifestyle and e-commerce platform focusing on DIY, plans to use content from the acquisition to build out its platform. TechCrunch reports the acquisition is an asset sale, covering the Snapguide’s website and app, its user network, DIY guides, and technology platform.

Announced: 06/09/15 Terms: Not Disclosed Previous Investment: $10 million Founded: 2011

Fexy Media Acquires Roadfood.com and SeriousEats. According to the New York Times, Fexy Media launched in 2014 and is making acquisitions as part of its broader strategy to become a force in the digital food media space. Fexy has plans to re-energize the Roadfood.com, which features regional and small town highway eateries across America, to boost its appeal to the younger generation. The core offering of Serious Eats won’t be changed beyond increasing its video content, as the acquisition will provide Serious Eats with new technology to bolster its digital video offering and opportunities for partnership with Fexy’s other portfolio companies.

Announced: 06/02/15 Terms: Not Disclosed Previous Investment: Not Disclosed Founded: Roadfood.com: 2000; Serious Eats: 2006

FUNDING

MangoPlate raises $6.1m. The Seoul-based mobile application for personalized dining recommendations features restaurant reviews and pictures crowdsourced from real users. Using algorithms and location data, MangoPlate generates customized restaurant recommendations and restaurant deals based on a user’s whereabouts and cuisine preference. The company aims to double the restaurants it captures in Korea from 40 percent to 80 percent and roll out money making features, such as enabling restaurant owners to provide targeted deals to consumers who have shown interest in their restaurants. Funding will also be used to test overseas markets.

Announced: 06/30/2015 Stage: Series A Participating Institutional Investors: Qualcomm Ventures (lead), SoftBank Ventures Korea, YJ Capital Previous Investment: $900k Founded: April 2013

Bento Raises $1.5m. The San Francisco-based on-demand food delivery service specializes in delivering Asian food. Customers can choose from a menu of meals and have the option of specifying low-carb or gluten-free selections. To ensure quick delivery, Bento delivers curbside only. TechCrunch notes that Bento has seen 15 percent growth per week, and plans to expand its service into East Bay.

Announced: 06/25/2015 Stage: Seed Participating Institutional Investors: LAUNCH Fund (lead), Slow Ventures, 500 Startups Mobile Collective fund, FundersClub Previous Investment: Not Disclosed Founded: March 2015

Postmates Raises $80m. The San Francisco-based online delivery service is a developer of consumer-facing logistics software that dispatches and guides couriers through major metropolitan areas to deliver local goods including prepared food, groceries, and retail goods. The company currently operates across 28 different markets and has reportedly surpassed 2.5 million deliveries. TechCrunch reports that while one weakness of Postmates has been its high delivery costs, which ranges from $5 to $20, the company has addressed the problem somewhat through its newly launched Postmates Merchant Program, which charges a flat $4.99 delivery fee for over a thousand partner restaurants. To further undercut its rivals, Postmates plans to roll out a new service in August that will charge customers around $1 for deliveries of food and other goods to high-density zip codes at peak times. The company will also use the funding to move into a range of other areas of delivery, including groceries and healthcare and beauty products.

Announced: 06/25/2015 Valuation: $400 million to $500 million Stage: Series D Participating Institutional Investors: Tiger Global Management (lead), Slow Ventures, Spark Capital Previous Investment: $58.0 million Founded: May 2011

VenueNext Raises $9m. The Palo Alto-based app for venues is designed to help attendees and operators at live events by connecting to the venue’s food and retail POS systems, e-ticketing solution, and parking pass validation systems, to offer live, in-app content for fans at the stadium. The VenueNext technology is available for licensing and provides both a customized guest-facing app and a backend platform for the venue to use. The company has had its first rollout at Levi’s Stadium, which sold $1.25 million of snacks and merchandise and experienced a 30 percent app adoption rate. VenueNext is expected to expand in 30 venues by the end of the year, going beyond sports stadiums to other venues, such as hotels.

Announced: 06/24/2015 Stage: Series A Participating Institutional Investors: Causeway Media Partners (lead), Live Nation Labs, Twitter Ventures Previous Investment: Not Disclosed Founded: 2013

Kitchenbowl Raises $1.3m. The Seattle-based startup describes itself as a community in which users can share and discover recipes. The platform aims to reinvent the recipe format to make it accessible to millennial users, emphasizing the use of photos in teaching users to cook. GeekWire reports that the average recipe contributor has uploaded about five recipes with six to nine photos. The capital injection will be used to help Kitchenbowl grow its team and platform.

Announced: 06/22/2015 Stage: Angel Participating Angel Investors: Jon Staenberg, Kurt Dammeier, Bill Moore, Scott Svenson Previous Investment: $1.0 million Founded: 2013

Offpeak Raises $800k. The Selangor, Malaysia based-restaurant booking and discovery platform startup focuses on helping restaurants get reservations during off peak hours. Available as iOS and Android apps, Offpeak offers recommendations based on a user’s location, and enables users to book tables at discount with as little as 10 minutes advanced notice. The capital will be used for expansion into other Southeast markets starting with Bangkok, establishment of local teams, and strengthening its marketing signal.

Announced: 06/22/2015 Stage: Series A Participating Institutional Investors: Gobi Partners Previous Investment: Not Disclosed Founded: 2014

HolaChef Raises $3.1m. The Mumbai-based web and mobile app for food delivery offers users a different menu from which to choose food every day. Professional and amateur chefs can sell meals once approved by the company, which will then package and deliver the food. HolaChef is currently serving 1000 orders a day, and plans to use the funds to set up a central kitchen and invest in modern infrastructure, technology and delivery.

Announced: 06/20/2015 Stage: Seed Participating Institutional Investors: Kalaari Capital (Lead), India Quotient Previous Investment: $320k Founded: 2014

La Ruche qui dit Oui Raises $9m. The Paris-based startup makes it possible for consumers to buy directly from local farmers and foodmakers at nearby “ruches.” The company employs independent contractors as ruche managers to facilitate the local marketplace. TechCrunch notes that because vendors set their own prices and receive 80 percent of the proceeds from sales, prices are competitive without being a “race to the bottom.” There are currently over 600 ruches in France, and the company additionally operates in France, Spain, Germany, Italy, and the UK. Funding will be used to solidify existing markets.

Announced: 06/16/2015 Stage: Series B Participating Institutional Investors: Felix Capital (Lead), Union Square Ventures (Lead), Quadia, XAnge Private Equity Previous Investment: $4.1 million Founded: 2011

FoodAbhi Raises Seed Funding. The Mumbai-based online tiffin marketplace aims to distinguish itself by catering to both daily and on-demand meals. The company currently partners with over 30 vendors, which are listed free of charge on the company website, and has delivered over 15,000 meals. To ensure quality, FoodAbhi packages meals itself and organizes surprise audits to check on hygiene, ingredients used. The company will use the funding to expand its technology and its scale, with plans to build apps that track deliveries and vendor activities. FoodAbhi additionally plans to expand into Pune, Bangalore, and eventually Delhi.

Announced: 06/15/2015 Stage: Seed Participating Institutional Investors: Not Disclosed Previous Investment: Not Disclosed Founded: 2013

Lavu Raises $15m. The Albuquerque-based provider of point of sales systems for restaurants is currently being used by over 4,000 restaurants in 86 countries. Lavu’s system can track sales and is customizable for coffee shops, food trucks, bars, and nightclubs. As with other next generation POS services, Lavu asserts that its services are less expensive than those of traditional POS systems, which can charge tens of thousands of dollars up front. The capital will be used towards sales and marketing.

Announced: 06/15/2015 Stage: Series A Participating Institutional Investors: Aldrich Capital Partners Previous Investment: Not Disclosed million Founded: 2010

Blue Apron Raises $135m. The New York-based meal delivery service company packages a recipe and pre-portioned ingredients that are delivered to customers’ homes on a weekly basis. In the past six months, Blue Apron has tripled its volume and is selling 3 million meals per month. Blue Apron will use the funding to scale its growing network of farms, suppliers, and fulfillment capabilities throughout the country, and has plans to invest in automation and add custom fulfillment software tools, enabling the company to reach home chefs in over 99% of the continental United States.

Announced: 06/09/2015 Valuation: $2 billion Stage: Series D Participating Institutional Investors: Fidelity Investments (Lead), Bessemer Venture Partners, BoxGroup, Stripes Group Previous Investment: $58 million Founded: 2012

Swiggy Raises $16.5m. The Bangalore, India-based food delivery mobile app accepts orders from users and employs personnel to pick up and deliver food from restaurants to customers’ doorsteps. After a recent close of $2 million in April, the current funding will be used towards expansion into other cities in India and strengthening of its brand platform. By employing its own delivery fleet, Swiggy does not have an order minimum and offers users with multiple payment options. TechCrunch notes that, as one of 14 grocery delivery startups based in India, Swiggy has seen 10x growth in order numbers in recent months and distinguishes itself with its provision of a curated list of restaurants and ensured delivery time.

Announced: 06/09/2015 Stage: Series B Participating Institutional Investors: Norwest Venture Partners (lead), Accel Partners, SAIF Partners Previous Investment: $2.0 million Founded: August 2014

Delivery Hero Raises $110m. The Berlin-based network of online food ordering sites now features a network of 200,000 restaurants across 34 countries. Over 10 million orders each month are processed by Delivery Hero, which generates $165 million in monthly sales. The capital infusion will be used “for selective acquisitions and intensive product innovation.” TechCrunch reports that this could suggest further expansion into other countries, as well as other food product markets, such as meal kits, grocery delivery, or high end restaurant delivery.

Announced: 06/07/2015 Valuation: $3.1 billion Stage: Private Equity Participating Institutional Investors: Not Disclosed (“leading public market investors”) Previous Investment: $1.3 billion Founded: September 2010

TabbedOut Raises $21.5m. The Austin-based mobile payment app is currently installed in over 10,000 venues in the U.S. and allows patrons to open, review, and securely pay their tab. Restaurants and bars can use TabbedOut to track and use customer baskets and behavior to create comprehensive consumer databases that offer actionable insights into their customer’s spending habits. Proceeds from the round will be used to accelerate user acquisition through the implementation of automated loyalty and rewards programs, integration with other mobile consumer services, and expansion into 20 new U.S. markets.

Announced: 06/04/2015 Valuation: $78 million Stage: Series C Participating Institutional Investors: Wellington Management Company (lead), New Enterprise Associates, Morgan Creek Capital Management Previous Investment: $17.5 million Founded: June 2009

EatTreat Raises $350k. The New Delhi-based social media platform for food lovers started out as a Facebook group focused on recipes, restaurant reviews, articles on cookbooks, and other food related content. With seed funding to build the website and make key hires to bolster company infrastructure, EatTreat will soon launch its independent web and mobile platforms which connect end users with service providers. EatTreat will feature new innovations in food, and aims to generate dialogue among foodies and revenues through advertisement.

Announced: 06/01/2015 Stage: Seed Participating Institutional Investors: Divitas Capital Previous Investment: Not Disclosed Founded: 2015

iFood Raises $50m. The São Paulo-based food delivery company enables users to order food through its website and mobile apps. Through iFood’s platform, users can consult restaurant menus and prices and select the desired delivery location to make their purchase. TechCrunch notes that Brazil is experiencing 21% year over year growth, making it the leader in the burgeoning space of Latin American e-commerce services. iFood captures 80 percent of the online restaurant delivery market and expects to hit one million deliveries per month by the end of 2015. Funding will be used towards growth in new cities and continued development of its team and infrastructure.

Announced: 06/01/2015 Stage: Series E Participating Institutional Investors: Just Eat, Movile Previous Investment: $11.9 million Founded: May 2011

PARTNERSHIPS

Jawbone Partners with Yummly to help users to be informed about their daily food intake via UP devices.

Men’s Health Partners with Chef’d to bring Men’s Health branded meals to consumers’ homes.

DoorDash Partners with Whole Foods and Trader Joe’s to deliver prepared foods, including sandwiches and wraps.

INDUSTRY LANDSCAPE

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Breaking the Distribution Juggernaut: Courts Block Sysco/US Foods Merger

Lawrence Williams — Wed, 01 Jul 2015 15:09:12 +0000

Image via Business Finance News

As I mentioned in my prior article on the Sysco/US Foods Merger, every food entrepreneur has to come up with a food distribution strategy, whether you sell wholesale or retail. Earlier this week, the US District Court in D.C. approved the Federal Trade Commission’s injunction against the merger, agreeing with the FTC’s view that the merger would lead to higher prices and diminished service for restaurants, hotels, schools, etc. The court’s decision caused Sysco to drop its $8.2 billion takeover, earlier this week.

Foodservice distribution has always been a challenging, capital and labor intensive business, but this new development should make it easier for innovative regional distributors and even new entrants to compete. And the changing taste of consumers is opening the door for disruptive new business models to compete against the two distribution giants.

Cities across America have taken up this charge in a variety of ways. Regional food hubs have popped up across the nation, bringing small farmers together to feed major metropolitan areas. Regional enterprises, both for-profit and non-profit alike, pull together resources and allow wholesale buyers to purchase produce from a variety of farmers, through a single distribution point. Companies such as TerreLocal in San Francisco, which connects consumers to a variety of purchasing options through an easy-to-use mobile app, the Seattle Tilth Food Hub in the Pacific Northwest and Red Tomato in Massachusetts work to bring farmers and consumers together in new ways. They are expanding the Farmer’s Market and CSA models onto a larger, more accessible scale, joining others such as Improvonia, Sourcery and FarmersWeb.

And with the number of regional food hubs doubling in the past six years, this is becoming an increasingly viable alternative in the food distribution scene. For a full list of registered food hubs around the nation, or to register a local food hub, visit the National Good Food Network.

Last week was certainly an interesting one for court decisions. And it would appear to be yet another reason to be optimistic about the future.

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Food Tech Media Startup Funding, M&A and Partnerships: May 2015

Brita Rosenheim — Tue, 30 Jun 2015 15:34:34 +0000

With two monster acquisitions in the restaurant delivery space (totaling $1.3 billion) and 21 fundraises (totaling $549 million), capital continues to flow into the global food tech and media sector. Close to half of all the deals were based outside of the U.S. and there was a fair amount of early stage capital this month, with over three quarters of the deals Series A or earlier. In particular, meal delivery and e-commerce were dominant themes in the private funding sector with two thirds of the deals within those categories.

Speaking of monster acquisitions (for the food tech space), in early May it was reported that Yelp had engaged Goldman Sachs and is likely exploring a sale. Since the initial report, there have been no further updates, leading to speculations that a sale is “far from assured.” This however hasn’t stopped the industry from weighing in on potential buyers ranging from obvious candidates like Yahoo, Google, and Facebook, to the recent restaurant/local tech entrant Priceline, and even to the old guard news companies in order to strengthen their digital footprint in local.

Yelp certainly has its critics, from business owners to chefs to the food elite, however the tremendous amount of user-generated reviews are a treasure trove of hyperlocal data, with no single U.S. competitor yet able to compete in terms of scale (especially outside of major metro areas). Despite this advantage, Yelp has had a hard time scaling revenues at it only recently began to layer in transactional revenue to its long tail local advertising revenue model. As such, VentureBeat grimly declares that “the road to digital advertising glory is now littered with bodies” and that “Yelp’s history should remind us to be highly dubious of the remaining advertising-driven social businesses.”

While VentureBeat’s caution may be extreme, the tide is absolutely changing and startups must take note. Whether overtly transactional (such as Pinterest’s new “Buy Button”) or more nuanced, such as native campaigns which specifically resonate with a particular consumer segment, the most successful social businesses will be able to insert themselves as close as possible to the purchase path while continuously gathering and analyzing user data to actively drive product and service decisions.

M&A

TripAdvisor Acquires Dimmi. The Sydney, Australia-based online restaurant reservation platform enables users to discover and book a restaurant based on preferred location, availability, price, type of cuisine, and diner review. Dimmi is partnered with over 2,500 restaurants across Australia, and will join TripAdvisor’s restaurant division, TheFork, which is networked with over 24,000 restaurants across 10 markets. The Australian market is important to TripAdvisor, and according to tnooz, Dimmi had previously partnered with TripAdvisor in 2012 to allow TripAdvisor users to make restaurant bookings using technology powered by Dimmi.

Announced: 05/19/15 Terms: Not Disclosed Previous Investment: $11.5 million Founded: 2009

Alfred Acquires WunWun. The New York-based delivery platform promised promising “what you need, when you need,” aiming to deliver anything on-demand by letting users place orders through apps and sending the orders to SMS. According to TechCrunch, Alfred’s purchase of WunWun’s technology is a fire sale, and will enable Alfred to leverage WunWun’s experience with SMS to facilitate conversation with users. As per the company release, Hello Alfred will purchase WunWun’s technology suite in addition to bringing on several key hires.

Announced: 05/11/15 Terms: Not Disclosed Previous Investment: $17.5 million Founded: 9/1/2013

Just Eat Acquires Menulog. The Sydney, Australia-based online food ordering service claims to be the largest food delivery business in Australia and New Zealand, with 5,500 featured restaurants, 1.4 million active users, and LTM March 2015 revenues of £13.5m and EBITDA of £1.2m. The acquisition, which is expected to be EPS accretive in first full year of ownership, will enable Menulog to benefit from London-based Just Eat’s experience in digital marketing, and enhance Menulog’s customer service model to improve efficiencies and drive further growth. According to The Australian, industry consolidation, a trend in the restaurant delivery market, is an important strategic objective for Just Eat and as TechCrunch points out, even three months ago, Menulog merged with rival EatNow in a bid to protect their market share from encroaching competition. Separately, Just Eat’s competitor, Delivery Hero, was quick to point out that Just Eat may have overpaid for the acquisition, as evident by Just Eat’s shares dropping 12 percent following the acquisition.

Announced: 05/07/15 Terms: Approx $687 million in stock ($AUS 855 million) Previous Investment: Not Disclosed Founded: 2006

Ask.fm Acquires Foodily. The San Francisco-based social recipe network lets users browse and rank recipes from a set of criteria. TechCrunch notes that while the Q&A platform Ask.fm has little thematic overlap with Foodily, the acquisition of Foodily’s development team can improve the platform’s social platform and design aspects. Foodily had been looking for an exit strategy since competitor Pinterest gained popularity. According to TechCrunch, the Foodily team will now be focused on the continued development of Ask.fm’s Q&A platform, while the Foodily website and mobile app will be maintained by a separate division within IAC.

Announced: 05/01/15 Terms: Not Disclosed Previous Investment: $7.7 million Founded: 2010

Delivery Hero Acquires Yemeksepeti. The Istanbul-based online food ordering company marks Delivery Hero’s first move into Turkey, and will strengthen its position in the Middle East with the additional markets of the United Arab Emirates, Saudi Arabia, Lebanon, Oman, Qatar, and Jordan. Yemeksepeti (literal translation: “Food Basket”) currently processes more than 3 million orders each month, and is reportedly growing at 60 percent year. At the time of the announcement the deal was the largest ever acquisition in the food-ordering sector. In the acquisition announcement, Delivery Hero stated that Yemeksepeti’s “customer cohorts and reorder rates are among the best in the world,” however did not disclose any specific figures.

Announced: 05/01/15 Terms: $589 million in cash and shares Previous Investment: $44 million Founded: November 2000

FUNDING

TruWeight Raises Series A. The Hyderabad, India-based weight loss services company helps users manage their weight though a combination of counseling and customized nutrition plans focusing on ‘super foods.’ The company sells a food kit with products made with ingredients such as spirulina, barley grass, alfalfa grass, acacia gum, herbs, and foxtail millet. Additionally, TruWeight employs a team of nutritionists who design custom diet plans for clients and offers counseling online or at one of its seven offline centers. The undisclosed capital injection will be used towards launching a mobile app, as well as hiring new people, adding more food products, and opening up physical storefronts in Bangalore and Chennai.

Announced: 05/28/2015 Stage: Series A Participating Institutional Investors: Kalaari Capital Previous Investment: Not Disclosed Founded: 2012

Roads & Kingdoms Raises Angel Funding. The New York-based global web magazine focusing on the cultural and political aspects of travel and food recently received an investment from celebrity chef Anthony Bourdain (reportedly after the founder sent him a drunken email!). The site works with hundreds of freelancers around the globe, and claims to challenge digital media standards by offering higher quality content. The undisclosed amount of funding will be used to increase permanent staffing and to develop a creative content team. Bourdain has joined the company as a partner and editor-at-large, and as part of their partnership, the site will publish a series of food and travel books.

Announced: 05/27/2015 Stage: Angel Participating Investors: Anthony Bourdain Previous Investment: Not Disclosed Founded: 2011

Shift Messenger Raises $1.5m. The San Francisco-based startup provides a communication tool for the workplace to help employees manage their schedules. Shift Messenger has recently launched a web platform for people who do not own smart phones, enabling workers to post shifts online and get notified about timeslots that via SMS. According to TechCrunch, the company’s user numbers have increased five times since February. The company will use the funding to expand its design and engineering teams and add individual channels for teams within workplaces. Shift Messenger’s long-term plans include adding broadcasting tools to enable company leaders to communicate directly with their staff.

Announced: 05/27/2015 Stage: Seed Participating Institutional Investors: Version One Ventures (lead), Golden Venture Partners, Kapor Capital, Commerce Ventures, NewGen Venture Partners, Venrock, QueensBridge Venture Partners Previous Investment: Not Disclosed Founded: 2014

EveningFlavors Raises $500k. The Bangalore-based restaurant reservation platform lets users discover offers and discounts on dining, as well as events and parties. The company uses an automated system to handle requests, and partners with 200,000 restaurants to serve more than 300,000 diners annually. EveningFlavors will use the capital injection to expand into other cities and bring more restaurants and events under its network.

Announced: 05/25/2015 Stage: Angel Participating Investors: Sandiep Shrivatsava Previous Investment: $35k Founded: 2008

FruitDay Raises $70m. The Shanghai-based fresh produce ecommerce retailer claims to be China’s largest, and according to FoodBev Media, the company has achieved annual topline growth of over 150% for the past six years with a projected 10 million customers before the end of the year. FruitDay imports over 80 percent of its produce from foreign markets, and manages quality control over the entire logistics process, from produce selection to after-sale services. The company intends to use the funding to develop its infrastructure, recruit new management, and strengthen its upstream supply chain system. As part of the strategic investment, FruitDay will leverage JD.com’s nationwide fulfilment infrastructure to expand to serve markets throughout China.

Announced: 05/25/2015 Stage: Series C Participating Institutional Investors: JD.com (lead), ClearVue Partners, SIG China Previous Investment: $10.0 million Founded: 2009

Munchery Raises $85m. The San Francisco-based meal delivery service offers prepared meals, created by its own chefs, which are delivered cold for customers to heat up. This strategy enables Munchery to deliver a large quantity of meals over a wide geography without high risks of food spoilage. Munchery currently operates in San Francisco, New York, Seattle and Los Angeles, and will use the funds to expand into more regions, expand service in existing cities, and diversify menu options. Notably, unlike the majority of on-demand app-based services, Munchery’s staff of drivers is comprised of full-time employees with benefits.

Announced: 05/22/2015 Valuation: Approximately $300m Stage: Series C Participating Institutional Investors: Menlo Ventures (lead), Sherpa Ventures (lead), NorthGate Capital, 137 Ventures, Mousse Partners, e.ventures, Greycroft Partners Previous Investment: $32.7 million Founded: April 2011

Chef’d Raises $5.25m. The El Segundo, CA-based recipe and ingredient delivery service provides pre-portioned ingredients for meals that are created in partnership with food publications and celebrity chefs. Notably, the funding came from the founders, not venture capital, and as such, TechCrunch notes that this allows the team to eschew a subscription service in favor of letting customers buy meals individually. The company has plans to open a fulfillment center in Philadelphia to increase the number of delivery days available on the East Coast.

Announced: 05/22/2015 Stage: Angel Participating Investors: Kyle Ransford, Chris Growney Previous Investment: $95k Founded: 2013

Mode Media Raises $30m. The Brisbane, CA-based lifestyle media and ad tech platform provides users with a personalized stream of articles and videos based on the content producers and topics they follow. The company owns the vertical social network Foodie.com, which features stories, photos, and videos on recipes, restaurant and dish reviews, and food related products. The company, previously an IPO candidate before changing its name from Glam Media, has refocused its business as a destination platform where content producers go to promote their content (video in particular). According to Venture Beat, going forward the company “aims to work with mainstream TV, music, magazine and newspaper companies to promote their content too”. The company intends to use the funding to pay off some of its debts and continue investing in its technology platform.

Announced: 05/21/2015 Stage: Series G Participating Institutional Investors: Hubert Burda Media Previous Investment: $214.6 million Founded: September 2011

Drizly Raises $13m. The Boston-based on-demand alcohol delivery service enables users to shop for alcohol online and have their purchase delivered in 20 to 60 minutes. Pando Daily notes the Drizly app’s ease of use for customers and delivery partners, in addition to its proprietary ID verification technology, which help alcohol retailers extend sales while complying with alcohol sales and delivery laws that vary for towns across the nation. Drizly will use the new capital towards product development, sales and marketing, operations, and global distribution.

Announced: 05/18/2015 Stage: Series A Participating Institutional Investors: Polaris Partners (lead), Fairhaven Capital Partners, Suffolk Equity Partners, First Beverage Group Previous Investment: $4.75 million Founded: July 2012

Hungryroot Raises $2m. The New York-based provider of stovetop ready meals has developed six recipes that pair organic vegetable noodles with all-natural, chef-designed sauces, toppings, and optional pre-roasted proteins to create low calorie meals that are gluten and GMO-free. According to PE Hub, meals are sealed with proprietary packaging technology that maintains freshness for up to 10 days without preservatives, which gives Hunryroot a competitive advantage in the packaged meal industry. Hungryroot products are available for delivery in 23 states and the District of Columbia. New funding will be used to expand Hungryroot’s meal offering and enable delivery nationwide.

Announced: 05/12/2015 Stage: Seed Participating Institutional Investors: Lerer Hippeau Ventures, Crosslink Capital, Brooklyn Bridge Ventures, KarpReilly, Quotidian Ventures, Zelkova Ventures, Mesa Ventures Previous Investment: Not Disclosed Founded: 2015

Winnow Raises $900k. The London-based startup addresses food waste in the hospitality sector through their product, the Winnow smart meter. Comprised of a set of smart scales and accompanying tablet app, kitchen staff can use the smart meter to log in the waste thrown away into a connected tablet. Winnow’s algorithm will then analyze and transform the information into a report, providing chefs with insight to make appropriate operations adjustment. The company claims customers have seen 2 to 6 percent improvement in gross margins after using its system.

Announced: 05/11/2015 Stage: Seed Participating Institutional Investors: Mustard Seed, D-Ax Corporate Venture Capital Previous Investment: $236.4k Founded: 2013

Bulu Box Raises $1.5m. The Lincoln, NE-based discovery ecommerce company delivers vitamins, supplements and health snack samples to subscribing users. The company will use the capital injection to continue to grow Bulu Insights, software that uses data aggregated from consumer sample surveys, user profiles, and purchase behavior of Bulu Box customers to provide companies with actionable data. Brands partnering with Bulu Box can use Bulu Insights to view customer psychographics to anonymously compare their products against industry benchmarks.

Announced: 05/11/2015 Stage: Venture Participating Institutional Investors: Flyover Capital (lead), Dundee Venture Capital, Triompf Previous Investment: $2.6 million Founded: April 2012

Pinterest Raises $186m. The San Francisco-based visual search platform is available on the internet, Android, and iOS in over 30 languages. Re/code reports that along with the new funding, which is an extension of the Series G we reported in March, the company will allow employees whose options had vested by April 30 to cash in “a small portion” of their shares. This is the second time Pinterest has offered the option of a secondary sale to its employees, with the first being held in October 2012.

Announced: 05/08/2015 Valuation: Approximately $11 billion Stage: Series G Participating Institutional Investors: Wellington Management Company, Goldman Sachs, Andreessen Horowitz, Bessemer Venture Partners, FirstMark Capital, SV Angel, Valiant Capital Management, Fidelity Investments Previous Investment: $1.13 billion Founded: 2009

Box8 Raises $3.5m. The Mumbai-based on-demand food delivery startup has designed an all-in-one meal box, and processes over 2,000 transactions per day with reported growth of 10x in the past 15 months. Box8 plans to use the funds to further develop its mobile and Web platforms to improve customer experience.

Announced: 05/07/2015 Stage: Series A Participating Institutional Investors: Mayfield Previous Investment: Not Disclosed Founded: 2012

HeyLets Raises $1.65m. The San Francisco-based location discovery app differentiates itself by letting users pick from categories of interests to offer a personalized feed of recommendations. In an effort to keep reviewer information relevant, HeyLets lets users filter out reviews from people who do not have overlapping interests. The app currently features over 100,000 recommendations in 91 countries. The startup plans to use the funding for new hires, and product development, with the goal of enabling e-commerce transactions through the app.

Announced: 05/05/2015 Stage: Seed Participating Institutional Investors: BlueSky Funds Previous Investment: $1.54m Founded: 2011

NatureBox Raises $30m. The San Carlos, CA-based healthy snack subscription commerce company charges a monthly subscription fee for home-delivery of an assortment of snacks, as well as recipes and ideas for nutritional eats. Members can use ingredient, flavor, and dietary filters to choose from over 100 NatureBox-branded snacks. Since its last fundraising round, NatureBox has opened a new shipping center, diversified the types of products it offers, and partnered with American Airlines company to offer its products on some AA flights. The company will use the funds towards developing new products, raising product awareness, and striking more partnerships.

Announced: 05/05/2015 Stage: Series C Participating Institutional Investors: Global Founders Capital (lead), Neuberger Berman Private Equity Funds, Kensington Capital Holdings, Valley Oak Investment Partners, General Catalyst Partners, Canaan Partners, Softbank Capital Previous Investment: $28.5 million Founded: January 2012

SpoonJoy Raises $1m. The Bangalore, India-based delivery startup offers a subscription service as well as an on-demand lunch and dinner option to deliver custom-made meals to both office and residential customers. The company currently operates in Bangalore and processes close to 1000 orders a day. SpoonJoy intends to use the funding to upgrade its technological capabilities and launch in Delhi and Mumbai in the next two months.

Announced: 05/01/2015 Stage: Series A Participating Institutional Investors: SAIF Partners Previous Investment: Undisclosed Seed Founded: April 2013

And a few more from April that we missed:

Dmall Raises $100m. The Beijing-based grocery shopping startup offers services similar to InstaCart. Dmall’s technology consists of a website and mobile app connected to large supermarkets, through which customers within the service radius of each location can place orders. Dmall employees then purchase the items and deliver them to the customer within an hour. Dmall sells products at 5 percent below the supermarket price and to gain early traction, is offering free delivery for orders above $9.50. Founded by former Huawei executive Liu Jiangfeng, Dmall is currently in beta-testing in Beijing, and plans to expand into other large cities, including Shanghai, Shenzhen, and Guangzhou, later in the year.

Announced: 04/30/2015 Stage: Angel Participating Institutional Investors: IDG Capital Partners Previous Investment: Not Disclosed Launched: 2015

SimplyCook Raises $1.1m. The London-based startup is a “food discovery” subscription service that provides customers with monthly recipe boxes containing four recipes and corresponding ingredient kits. Each meal costs between £2 and £6 and includes gluten-free options. Proceeds from the funding will be used to develop marketing initiatives and enhance SimplyCook’s data gathering processes to cater for each customer’s specific taste.

Announced: 04/28/2015 Stage: Ventures Participating Institutional Investors: Episode 1 Previous Investment: Not Disclosed Founded: 2013

Grab Raises $1m. The Mumbai-based food logistics startup provides hyper-local delivery services for restaurants and food enterprises. The company claims that its technology platform allows for pick-up in 15 minutes and delivery in 20 minutes. Grab employs over 500 delivery personnel in Mumbai and works with over 350 partner restaurants. The company will use the new funding to expand into Pune and has plans to increase its delivery staff to 800, in order to process 7,000 daily orders across 700 outlets.

Announced: 04/27/2015 Stage: Seed Participating Institutional Investors: Oliphans Capital Previous Investment: Not Disclosed Founded: 2012

Green Chef Raises $15.5m. The Denver, CO-based organic and seasonal meal kit startup delivers a weekly box with all the ingredients to cook three meals, via FedEx and UPS. According to BusinessDen, the company is quadrupling production space at a new facility in Aurora and will be opening a production hub in the mid-Atlantic region to serve the East Coast.

Announced: 04/14/15 Stage: Series A Participating Institutional Investors: New Enterprise Associates, Global Venture Capital Previous Investment: Not Disclosed Founded: September 2014

PARTNERSHIPS

OpenTable Partners with Aloha to integrate services and expand mobile payment availability.

Olo Partners with LevelUp to introduce the restaurant industry’s first fully turnkey mobile commerce app with built-in ordering, loyalty, and payment solutions.

Edamam Partners with The New York Times to provide nutrition information for The New York Times’ cooking app.

Google Partners with food delivery companies including Eat24 and Seamless to enable users to order food from its search page.

INDUSTRY LANDSCAPE

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The post Food Tech Media Startup Funding, M&A and Partnerships: May 2015 appeared first on Food+Tech Connect.

Reducing Food Waste & Creating a Sustainable Supply Chain [Infographic]

Erica Khosrowshahi — Fri, 26 Jun 2015 19:16:18 +0000

One third of all food produced in the world is wasted. That’s about $400B a year, finds a recent report by the Waste and Resources Action Program. The majority of that food waste is discarded in landfills and results in 3.3 billion metric tons of greenhouse gases annually.

To shed light on ways we can reduce waste in the food supply chain from farm to fork, Marylhurst University’s Online MBA in Sustainable Business program created the infographic below. Based on data from GreenBiz, The Organic Trade Association, Environmental Leader and other sources, it illustrates how converting farm waste into energy, embracing innovative, green distribution technologies, creating corporate sustainability initiatives, and more can help build a more efficient and sustainable food chain while increasing the bottom line for food businesses.

The graphic shares some interesting statistics on the potential of green production methods. For example, the market for converting global waste into energy is expected to jump from $17.98B in 2012 to $28.57B in 2016. It also notes that long-term sustainability initiatives can reduce waste while generating savings. For example, in 2012, ConAgra saved $22M while reducing carbon emissions by 26,700 tons and landfill waste by 23,000 tons. In 2009, food and beverage companies with green initiatives in place experienced a 19% decrease in energy costs year over year, a 17% decrease in waste and disposal cost, a 5% overall reduction in operating costs and, very interestingly, a 15% increase in customer acquisition, according to the graphic.

Consumers care increasingly more about what’s in their food and how it’s produced. In fact, 78% of families say they choose organic food, the graphic states. One thing is clear after a spin through this graphic: Food corporations, governments and startups alike need to embrace innovative solutions for waste reduction throughout the supply chain.

Want more food waste innovation inspiration? Check out these posts:

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