AccelFoods to accelerate the growth of six startups through $20 million
AccelFoods, the food and beverage accelerator, has raised their second fund which touches $20 million. The investor added six Class IV startup companies to its portfolio who will receive backing from the newly raised fund.
The growing demand for specialty food and beverage has kept the investors busy with raising such capital and pumping them into the channel that feeds the expanding niche market. According to The Wall Street Journal, investments in venture firms' food and beverage division soared to $603 million for a total of 48 deals in 2015. This sets the record for the highest annual amount invested in this sector, representing a 60% increase.
However, in this niche packaged foods market, AccelFoods is interested in the makers of allergen- and gluten-free foods, ethnic foods, and organic snacks rich in protein and nutrition that are easily available and designed for fast consumption. "Families are purchasing foods to accommodate the needs of an allergic friend or family member, increasingly," AccelFoods co-founder and Managing Partner Jordan Gaspar stated. "And millennial shoppers, in particular, expect natural ingredients as a standard."
The food and beverage investor has always been known for backing some of the most innovative products in the market, says the PE Hub Network. Similarly for the six new next-gen food and beverage houses, the company has taken pride in identifying and investing in them. They will now receive support from AccelFoods' operating team in day-to-day activities, guidance from industry experts and an eight-month program conducted by strategic partners as a value-added support.
As Project Nosh reports, these class IV next-gen startups are: Crunchsters - maker of savory snacks from mung beans; Wandering Bear - ready-to-drink cold coffee brewer; Nona Lim - maker of instant, all-natural noodles and soups that are based on age-old recipes; il Morso - maker of coffee and cocoa butter bars that give an instant caffeine kick; Tea Drops - maker of bag-less tea solution that dissolves when mixed with water; and Purely Pinole - maker of gluten-free, high-protein, high-fiber hot cereal.
"AccelFoods is proud to continue investing in founders and companies that represent our core values of professionalism, quality and disruption," says Jordan Gaspar. To this, the other co-founder and managing partner Lauren Jupiter added, "Class IV represents true innovation in the food and beverage space. These companies are primed for growth and we are excited to apply AccelFoods' proprietary suite of resources to these companies as they look to grow big."