Bridging The Knowledge Gap & Driving Innovation For A Healthier Food System
Our Goal
To support mission-driven companies tackling the challenges facing our food system, building a stronger and more sustainable food system.
How We Do It
We Build
Join our community as we bring together hundreds of innovators, leaders and professionals in the food industry together through summits and other networking opportunities.
We Educate
Gain access to our annual comprehensive food industry reports, and weekly industry updates. Take advantage of different learning opportunities we provide to stay ahead and stay informed.
We Strategize
Work with our financial analysts and business consultants, gain deep business insights and industry projections.
Discover The Most Outstanding Innovators, Join Us In-Person In NYC
Articles
For Founders: Seize this Moment to Raise Capital
By Bunmi Olayanju MBA CFA
While the headlines have been awash with talk of a venture capital winter, it’s crucial to understand that it’s merely a season, not a barren period. The data shows that while the pace of fundraising might have decelerated in the past year and a half, there’s still a robust ecosystem of deals being struck across stages. For founders who can present their businesses credibly and compellingly, now could be an opportune time to secure the capital they need.
Let’s delve into why the current fundraising climate holds promise:
Abundance of Dry Powder: Latest data from Q1 2023 shows VC firms in the U.S. sitting on a staggering $303B in uninvested capital, a figure nearly double that of pre-pandemic levels. This reservoir indicates there’s ample capital seeking worthy ventures.
Momentum-driven Investments: After a period of caution, investors are eager to finish the year on a strong note or begin the new one with vigor. Given that VC earnings are closely tied to the multiples on their invested capital, there remains a consistent interest in bankrolling promising startups. Angellist’s Q3 2023 data underscores this, revealing a notable uptick in investment activity.
Favorable Valuations: Recent trends show startup valuations undergoing a correction, reaching some of the most investor-friendly levels in recent history. Lower valuations allow investors to reduce their investment costs, making their desired returns more achievable. Q3 2023 reports from AngelList and Carta suggest that median valuations remained consistent or even edged higher across venture stages compared to the preceding quarter. Furthermore, AngelList’s Q3 VC report points out that valuations, particularly in the early stages, might have hit a floor, offering a potential uptick in the near future. For investors, this presents a lucrative window to enter before valuations surge.
The Angel Impact: Angel investors, especially in the early stages, have become indispensable. Data from Carta highlights that checks amounting to less than $25,000 constituted between 31% and 59% of all pre-seed capital raised in the first half of 2023. This engagement level is poised to rise with the sizable accredited investor base in the US and the increasing adoption of angel special purpose vehicles (SPVs), which offer a simplified and efficient medium for angels to pool resources and back startups collectively.
In conclusion, while cyclical downturns in venture capital can create an atmosphere of apprehension, they often conceal underlying opportunities. The current climate, with its abundance of uninvested capital, investor eagerness to achieve momentum, attractive valuations, and the significant role of angel investors, makes a compelling case for founders to actively pursue their fundraising initiatives. Armed with the right strategy and a clear understanding of the evolving investment landscape, founders can effectively navigate this VC winter, turning prevailing challenges into unparalleled opportunities.
Bunmi Olayanju MBA CFA is a finance expert and investor. Visit here to learn more about him
US Govt Loans $25M for Voyage Foods to Build Large Cocoa-free Chocolate Factory: Funding and Acquisition Headlines
Funding Acquisition and Finance News
US Govt Loans $25M for Voyage Foods to Build Large Cocoa-free Chocolate Factory – Green Queen
US food tech startup Voyage Foods is set to open a large-scale manufacturing facility for its ethical pantry staples, aided by a $25M loan from the government.
Massachusetts Backs Tufts University With $2.1M for New Cell Ag Center – Vegconomist
The Healey-Driscoll administration and the Massachusetts Technology Collaborative have awarded $2,136,711 to the Tufts University Center for Cellular Agriculture to establish the Foodtech Engineering for Alternative Sustainable Technologies center.
Cereals Canada Invests $7.3M in Cereal Research to Boost Competitiveness – Just Food
Cereals Canada has secured $7.3 million in funding from Agriculture and Agri-Food Canada (AAFC) to enhance research, innovation, and market support for the Canadian cereal sector.
MicroLub Beefs Up Budget with $4.5M Round – Green Queen
UK deep tech startup MicroLub has closed a £3.5M ($4.5M) funding round to replace fats and oils with its plant-based microgels.
Smart Foods Acquires The Aussie Plant-Based Co From Liquidation – Vegconomist
The Aussie Plant-Based Co, which entered liquidation due to cash flow difficulties, has now been acquired by Gold Coast-based food manufacturer Smart Foods.
German Ministry Grants €2.6M to Project Upcycling Dairy Waste Into Mycelium Protein – Green Queen
Infinite Roots and the Hamburg University of Technology have received a €2.6M grant from the German government to develop tech that transforms whey into a feedstock to grow mycelium.
France’s LDC Takes Majority Stake in European Convenience Food Group – Just Food
France’s LDC group has taken a majority interest in Germany-based European Convenience Food (ECF Group), a retail and food service supplier.
JAB to Acquire Mondelez Stake in JDE Peet’s Coffee Business – Food Business News
Investment firm JAB Holding Co. is acquiring Mondelez International’s stake in the coffee and tea company JDE Peet’s in a €2.16 billion ($2.34 billion) deal.
Second Nature Brands Acquires Voortman – Food Manufacturing
Second Nature Brands LLC, a portfolio of premium and better-for-you snacks and treats brands, announced it has entered into a definitive agreement to acquire the Voortman cookie brand from the J.M. Smucker Co.
Smart Foods Buys Australia Alt-meat Peer Fenn Foods – Just Food
Fenn Foods, the Australian alt-meat business that moved into liquidation, has a new owner. Local peer Smart Foods has struck a deal to acquire Buderim-based Fenn Foods’ “major assets”, according to insolvency firm Fort Restructuring.
Müller Deal to Buy Yew Tree Dairy Approved by CMA – FoodBev Media
Müller has announced that it has received approval from the Competition and Markets Authority (CMA) regarding its acquisition of Yew Tree Dairy.
Força Foods Launches the “World’s First” Watermelon Seed Milk: Food Tech and Innovation Headlines
Food Tech and Innovation News
Força Foods Launches the “World’s First” Watermelon Seed Milk – Vegconomist
Força Foods, a food company based in San Francisco focused on sustainable ingredients and water conservation, has launched an innovative and exciting alternative to milk claimed as a world’s first: watermelon seed milk.
Ahead of Singapore Approval, French Startup Hosts Tasting for Cultivated Chicken – Green Queen
French cultivated chicken startup Vital Meat showcased its ingredient in a public tasting in Singapore, where it expects regulatory approval “very soon.”
Coffee Mate Introduces New Line of Coffee Creamers – FoodBev Media
Nestlé-owned Coffee Mate has introduced a new line of creamers called Cold Foam, designed to elevate coffee and other beverages.
The Better Meat Co Takes Its Mycoprotein to Asia with Singapore Regulatory Approval – Green Queen
Californian startup The Better Meat Co has received regulatory approval for its Rhiza mycoprotein ingredient in Singapore, paving the way for its international debut.
Canada’s Plant-Based Food Innovation Grows with Pulse-Centered Collaborations – Vegconomist
The plant-based food sector in Canada is seeing a surge in innovation as companies collaborate to meet the rising global demand for alternative protein sources. A key initiative in this space involves several Canadian partners, including Daiya Foods, Ingredion, and Lovingly Made Flour Mills.
TreeHouse Foods Expands Listeria-linked Waffles Recall to All Products: Food Safety and Health Headlines
Food Safety and Health
TreeHouse Foods Expands Listeria-linked Waffles Recall to All Products – Just Food
TreeHouse Foods has expanded a recall linked to the potential presence of listeria to encompass “all products” manufactured at a single facility in Ontario, Canada.
McDonald’s Linked to Deadly Outbreak of E. Coli Infections –Food Safety News
Almost 50 people have become ill with E. coli O157:H7 infections after eating McDonald’s Quarter Pounder hamburgers. One person has died.
EFSA Confirms Safety of Silica as Food Additive – FoodBev Media
The European Food Safety Authority (EFSA) has confirmed that silica is safe to use in food, including infant and baby food.
Albertsons Companies Recalls ReadyMeals Because of Listeria Concerns – Food Safety News
Albertsons Companies is recalling 12 types of ReadyMeals and store-made deli items, supplied by Fresh Creative Foods because of possible Listeria monocytogenes contamination.