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Are you ready for the Venture Capitalists Food Start-ups?

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With food incubators and accelerators becoming more popular, are you ready for the Venture Capitalists food startups? Venture Capitalists are getting more willing to help finance food-startups. “The No. 1 thing V.C.’s are looking for are scalable and repeatable, high-margin businesses.

VC's money

Food-startups, can create scalable foods for a greater return on investments – it’s just harder.

Our local economy is going to expand with local food businesses. As in any eco-system everything works best from the inside out rather than pushing in. When local communities are healthy, prosperous and growing then it’s better for all concerned.

Last year, venture capital firms in the valley have funneled about $350 million into food projects and investment deals in the sector were 37 percent higher than the previous year, according to a recent report by CB Insights, a venture capital database. In 2008, that figure was less than $50 million.

That money is just a slice of the $30 billion that venture capitalists invest annually, but it is enough to help finance an array of food start-ups. Read more

With over $350 million in funding raised since the second quarter of 2013, it is safe to say that food and beverage startups have caught the attention of investors around the world. This type of growth in funding begets more startups. As it stands, AngelList shows 2,794 Food and Beverage related startups (great place to find a job in a Food business) in their database. The growth in this segment is also seen in the number of food and beverage related startup accelerators. Read the list..

There are many kinds of Incubators and Accelerators where you will find VC’s who are checking out if you food business can scale up or not. Most likely the disrupters, coders and app makers.

Food Accelerators – Food +Tech
By taking a laser focus and only working with health, food and fitness startups we can focus all our research, startups and education towards the same goal. When a co-hort has people from hardware to app discovery to social platforms the goals can’t be similar and the learnings and mentor talks can’t be anything more than high level. With everyone working in the same space the lessons are similar and even allow for co-marketing.
They offer:
$25,000 in cash, $15,000 in digital lab credits, Office space and a hands on program. In return, they take a range of 5-10 percent in equity of the business.

Food Hatch
Besides providing funding to grow your business, Food Hatch provides portfolio companies the extra ‘value add’ within the food business that will offer your company access to invaluable expertise from executives who have years of broad experience within the food industry. Food Hatch is actively looking to invest in exciting promising seed and early stage food related companies. So, whether you are a company that is creating the next great food product or you are company that has just developed the next great food app; we invite you to apply for funding. Read more

Local Food Lab – Palo Alto, CA
Local Food Lab aims to be an incubator for sustainable food- and farm-focused startups that will help rebuild a broken food system. The idea is to equip entrepreneurs with the tools to create businesses that are scalable so they can make a larger impact in the food sector, says Local Food Lab CEO and Co-Founder Krysia Zajonc.
The course, which runs from June 25 through July 20, costs $1,750 in tuition. They accept 10 businesses at a time. Read more

Hot Bread Kitchen
Hot Bread Kitchen increases economic security for foreign-born and low-income women and men by opening access to the billion dollar specialty food industry. We do this through our culinary workforce and business incubation programs, Project Launch and HBK Incubates.

To help offset the cost of our training and to build esteem in the contribution of immigrants, we sell delicious multi-ethnic breads that are inspired by our bakers and the many countries that they come from.  We make it a priority to use local and organic ingredients. As our staff of trainees grows, so does our product line.  As part of our mission, we preserve valuable baking and culinary traditions and “br-educate” New Yorkers about the tasty and important contributions of immigrant communities. Read more

New York EDC
Located at 36-46 37th Street in Long Island City, the incubator consists of a 5,000-square-foot commercial kitchen with four kitchen stations and storage facilities that are open 24 hours a day to new or growing food manufacturers, caterers, and bakers. Additionally, the incubator has 7,000 square feet of workspace, consisting of workstations and private suites to provide food or other businesses with affordable and flexible back-office workspace. Since its inception, the incubator has served hundreds of entrepreneurs in establishing and growing successful companies. Read more

The Kitchener -Oakland, CA
“We’re trying to change the commercial kitchen game,” says Kitchener founder Sophia Chang. “They’re often landlord-tenant situations. This is an actual family.” Chang, once a small-batch ice cream maker herself, hosts roundtable discussions on business development and organizes monthly pop-up markets. Her next move: turning part of the building into takeout windows that Kitchener’s 32 producers can rent as temporary storefronts.  Read more

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