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Next Level Funding: A Quick Guide to Types of Food & Beverage Investors 

For new and growing food & beverage businesses, it’s a huge endeavor to find the capital to get your product to where you know it can go. We hope this guide to types of investment approaches will help you on your CPG journey!

Next Level Funding: A Quick Guide to Types of Food & Beverage Investors 

For new and growing businesses, it’s a huge endeavor to find the capital to get your product to where you know it can go. You don’t know what’s going to work so maybe you start with one approach and use that to leverage the next move. Or maybe you are throwing everything at the wall all at once and seeing what sticks. We hope that this guide to types of funding will help you on your fundraising journey.

VC Funds

VC funds, or venture capital funds, operate on behalf of investors by finding startups that they believe are poised to grow quickly. After reviewing and vetting business plans, VC funds will make an offer to a selected company with the amount and the terms, which can then be negotiated. Whether they are seeding a new company, providing early-stage capital, or providing expansion-stage capital, VC funds often take an active role in their investments and may require a seat on the board. In preparing to approach a VC fund, do some research to find out what their focus is and what other kinds of companies they’ve worked with in the past. 

With your elevator pitch and pitch deck in hand, you’ll need to be persistent and savvy in getting a sit-down with a decision-maker. If you can get an introduction, that may help move you along the process. VC funds are looking at the strength of the leadership team, market potential, positive early traction, and that founders have a strong understanding of the financials of the business, potential risks, realistic expected valuation, value of the product, and how the investment capital will be used. In your preparation, research term sheets and consider how the facets of financing will work with your business plan. You don’t want to set yourself up for benchmarks that you can’t meet or give up more control than you’re comfortable with. It’s important to enter these meetings with a strong understanding of how you operate and the realities of your product and projections. 

This list of VCs friendly to food and beverage investments is a good place to start. A few other notable funds in the food & beverage industry are: 

  • Riverpark Ventures
  • Velocity Snack Brands
  • AF Ventures
  • Imaginary
  • CAVU Venture Partners
  • HumanCo
  • 301 Inc
  • VMG Partners
  • Vu Partners

Private Equity

While venture capital is  a type of private equity, private equity firms typically fund established businesses with expansion or turnaround potential, versus VC firms’ focus on earlier stage companies with high growth potential. 

Private equity is seeking less risk and may be interested in improving a business before a sale. VC’s take on more risk but may be more likely to have interest in long-term growth. The advice for the pitch deck and elevator pitch for approaching venture capital funds is similar to what to prepare for a private equity firm. Linked below are a few notable names in food & beverage circles. 

Accelerator programs

An accelerator program works with startups to offer mentorship, capital, and connections to investors and potential partners. Some accelerators offer non-dilutive funding like grants, while others invest small amounts akin to early-stage VC firms. our team will likely meet with mentors who are experts in different aspects of business, including operations, finance, sales, and marketing. As the name implies, these programs are looking to accelerate growth in businesses, which means tapping into a larger network of experts, fellow founders, retailers and investors who know the market and can get you from launch to scale. 

Similar to seeking capitol, you’ll need a strong pitch deck and a clear vision. Funding tends to be less than what you’d receive from a venture capital fund or a private equity firm, but the expectations may not be as high and you’ll receive valuable time to work through any trouble areas and to position yourself for success. There are usually no demands on performance of your product but there are likely some on your time. Programs will often have an intensive program timeline designed to get you to the launchpad by the end of it. Be ready to put down other things in your life if you get accepted to one of these programs. 

Crowdfunding

Crowdfunding can look like the more traditional models like Kickstarter with a target fundraising goal or it can be more of a hybrid crowdfunding model like Republic. The major benefit to crowdfunding is that you can build excitement throughout the campaign and engage early with enthusiasts who are looking for the next exciting product and are ready to be your early adopters. With some sites, Kickstarter included, you only receive the funds if the target goal is met - it’s all or nothing. Other sites, like Republic, offer an investment with a promise of return to the small investor, where an individual can invest as little as $50, one small step towards democratizing the investment world. 

As mentioned, crowdfunding can  jumpstart customer engagement and visibility and bea really great opportunity to get input from the market early on in you. If your financial plan includes approaching VCs or other funders, you can point to a strong campaign as evidence of your product’s marketing strength. Before launching a campaign, be sure to have a strategy in place, clear messaging and storytelling, and strong images. For a model like Kickstarter, creative incentives will strengthen your campaign. For a hybrid model, you’ll need a strong pitch. Less than 2% of emerging companies that apply to campaign on Republic are approved. 

Where to start:

  • Kickstarter
  • Republic

Want more Foodboro? Give us a follow on LinkedIn!

For new and growing businesses, it’s a huge endeavor to find the capital to get your product to where you know it can go. You don’t know what’s going to work so maybe you start with one approach and use that to leverage the next move. Or maybe you are throwing everything at the wall all at once and seeing what sticks. We hope that this guide to types of funding will help you on your fundraising journey.

VC Funds

VC funds, or venture capital funds, operate on behalf of investors by finding startups that they believe are poised to grow quickly. After reviewing and vetting business plans, VC funds will make an offer to a selected company with the amount and the terms, which can then be negotiated. Whether they are seeding a new company, providing early-stage capital, or providing expansion-stage capital, VC funds often take an active role in their investments and may require a seat on the board. In preparing to approach a VC fund, do some research to find out what their focus is and what other kinds of companies they’ve worked with in the past. 

With your elevator pitch and pitch deck in hand, you’ll need to be persistent and savvy in getting a sit-down with a decision-maker. If you can get an introduction, that may help move you along the process. VC funds are looking at the strength of the leadership team, market potential, positive early traction, and that founders have a strong understanding of the financials of the business, potential risks, realistic expected valuation, value of the product, and how the investment capital will be used. In your preparation, research term sheets and consider how the facets of financing will work with your business plan. You don’t want to set yourself up for benchmarks that you can’t meet or give up more control than you’re comfortable with. It’s important to enter these meetings with a strong understanding of how you operate and the realities of your product and projections. 

This list of VCs friendly to food and beverage investments is a good place to start. A few other notable funds in the food & beverage industry are: 

  • Riverpark Ventures
  • Velocity Snack Brands
  • AF Ventures
  • Imaginary
  • CAVU Venture Partners
  • HumanCo
  • 301 Inc
  • VMG Partners
  • Vu Partners

Private Equity

While venture capital is  a type of private equity, private equity firms typically fund established businesses with expansion or turnaround potential, versus VC firms’ focus on earlier stage companies with high growth potential. 

Private equity is seeking less risk and may be interested in improving a business before a sale. VC’s take on more risk but may be more likely to have interest in long-term growth. The advice for the pitch deck and elevator pitch for approaching venture capital funds is similar to what to prepare for a private equity firm. Linked below are a few notable names in food & beverage circles. 

Accelerator programs

An accelerator program works with startups to offer mentorship, capital, and connections to investors and potential partners. Some accelerators offer non-dilutive funding like grants, while others invest small amounts akin to early-stage VC firms. our team will likely meet with mentors who are experts in different aspects of business, including operations, finance, sales, and marketing. As the name implies, these programs are looking to accelerate growth in businesses, which means tapping into a larger network of experts, fellow founders, retailers and investors who know the market and can get you from launch to scale. 

Similar to seeking capitol, you’ll need a strong pitch deck and a clear vision. Funding tends to be less than what you’d receive from a venture capital fund or a private equity firm, but the expectations may not be as high and you’ll receive valuable time to work through any trouble areas and to position yourself for success. There are usually no demands on performance of your product but there are likely some on your time. Programs will often have an intensive program timeline designed to get you to the launchpad by the end of it. Be ready to put down other things in your life if you get accepted to one of these programs. 

Crowdfunding

Crowdfunding can look like the more traditional models like Kickstarter with a target fundraising goal or it can be more of a hybrid crowdfunding model like Republic. The major benefit to crowdfunding is that you can build excitement throughout the campaign and engage early with enthusiasts who are looking for the next exciting product and are ready to be your early adopters. With some sites, Kickstarter included, you only receive the funds if the target goal is met - it’s all or nothing. Other sites, like Republic, offer an investment with a promise of return to the small investor, where an individual can invest as little as $50, one small step towards democratizing the investment world. 

As mentioned, crowdfunding can  jumpstart customer engagement and visibility and bea really great opportunity to get input from the market early on in you. If your financial plan includes approaching VCs or other funders, you can point to a strong campaign as evidence of your product’s marketing strength. Before launching a campaign, be sure to have a strategy in place, clear messaging and storytelling, and strong images. For a model like Kickstarter, creative incentives will strengthen your campaign. For a hybrid model, you’ll need a strong pitch. Less than 2% of emerging companies that apply to campaign on Republic are approved. 

Where to start:

  • Kickstarter
  • Republic

Want more Foodboro? Give us a follow on LinkedIn!

For new and growing businesses, it’s a huge endeavor to find the capital to get your product to where you know it can go. You don’t know what’s going to work so maybe you start with one approach and use that to leverage the next move. Or maybe you are throwing everything at the wall all at once and seeing what sticks. We hope that this guide to types of funding will help you on your fundraising journey.

VC Funds

VC funds, or venture capital funds, operate on behalf of investors by finding startups that they believe are poised to grow quickly. After reviewing and vetting business plans, VC funds will make an offer to a selected company with the amount and the terms, which can then be negotiated. Whether they are seeding a new company, providing early-stage capital, or providing expansion-stage capital, VC funds often take an active role in their investments and may require a seat on the board. In preparing to approach a VC fund, do some research to find out what their focus is and what other kinds of companies they’ve worked with in the past. 

With your elevator pitch and pitch deck in hand, you’ll need to be persistent and savvy in getting a sit-down with a decision-maker. If you can get an introduction, that may help move you along the process. VC funds are looking at the strength of the leadership team, market potential, positive early traction, and that founders have a strong understanding of the financials of the business, potential risks, realistic expected valuation, value of the product, and how the investment capital will be used. In your preparation, research term sheets and consider how the facets of financing will work with your business plan. You don’t want to set yourself up for benchmarks that you can’t meet or give up more control than you’re comfortable with. It’s important to enter these meetings with a strong understanding of how you operate and the realities of your product and projections. 

This list of VCs friendly to food and beverage investments is a good place to start. A few other notable funds in the food & beverage industry are: 

  • Riverpark Ventures
  • Velocity Snack Brands
  • AF Ventures
  • Imaginary
  • CAVU Venture Partners
  • HumanCo
  • 301 Inc
  • VMG Partners
  • Vu Partners

Private Equity

While venture capital is  a type of private equity, private equity firms typically fund established businesses with expansion or turnaround potential, versus VC firms’ focus on earlier stage companies with high growth potential. 

Private equity is seeking less risk and may be interested in improving a business before a sale. VC’s take on more risk but may be more likely to have interest in long-term growth. The advice for the pitch deck and elevator pitch for approaching venture capital funds is similar to what to prepare for a private equity firm. Linked below are a few notable names in food & beverage circles. 

Accelerator programs

An accelerator program works with startups to offer mentorship, capital, and connections to investors and potential partners. Some accelerators offer non-dilutive funding like grants, while others invest small amounts akin to early-stage VC firms. our team will likely meet with mentors who are experts in different aspects of business, including operations, finance, sales, and marketing. As the name implies, these programs are looking to accelerate growth in businesses, which means tapping into a larger network of experts, fellow founders, retailers and investors who know the market and can get you from launch to scale. 

Similar to seeking capitol, you’ll need a strong pitch deck and a clear vision. Funding tends to be less than what you’d receive from a venture capital fund or a private equity firm, but the expectations may not be as high and you’ll receive valuable time to work through any trouble areas and to position yourself for success. There are usually no demands on performance of your product but there are likely some on your time. Programs will often have an intensive program timeline designed to get you to the launchpad by the end of it. Be ready to put down other things in your life if you get accepted to one of these programs. 

Crowdfunding

Crowdfunding can look like the more traditional models like Kickstarter with a target fundraising goal or it can be more of a hybrid crowdfunding model like Republic. The major benefit to crowdfunding is that you can build excitement throughout the campaign and engage early with enthusiasts who are looking for the next exciting product and are ready to be your early adopters. With some sites, Kickstarter included, you only receive the funds if the target goal is met - it’s all or nothing. Other sites, like Republic, offer an investment with a promise of return to the small investor, where an individual can invest as little as $50, one small step towards democratizing the investment world. 

As mentioned, crowdfunding can  jumpstart customer engagement and visibility and bea really great opportunity to get input from the market early on in you. If your financial plan includes approaching VCs or other funders, you can point to a strong campaign as evidence of your product’s marketing strength. Before launching a campaign, be sure to have a strategy in place, clear messaging and storytelling, and strong images. For a model like Kickstarter, creative incentives will strengthen your campaign. For a hybrid model, you’ll need a strong pitch. Less than 2% of emerging companies that apply to campaign on Republic are approved. 

Where to start:

  • Kickstarter
  • Republic

Want more Foodboro? Give us a follow on LinkedIn!

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