Investors are Hungry for Food Startups

August 18, 2014

Traditionally a field dominated by technology and biotechnology, venture investors have developed an appetite for food.

With significant funding rounds for meal delivery services including HelloFresh and Blue Apron, food-related investments are on pace for the best year on record, with $617 million invested year-to-date according to PitchBook data. These startups make at-home cooking more efficient by portioning out ingredients and investors want their share.

Following the success of the GrubHub Seamless IPO earlier this year, VCs are also looking at startups like Munchery, SpoonRocket and Sprig as the next phase of on-demand food delivery, with rotating menus from in-house chefs.

Related: VCs Loving LA, but Don’t Call it ‘Silicon Beach’

“Venture investments in online food delivery services have taken off because the market is huge and busy consumers are willing to pay for the convenience,” says Jason Wang, CEO of restaurant delivery service, Caviar, which was acquired by Square on Monday.  “But providing premium food, fast delivery, and a large delivery area at an affordable price is critical and difficult to do.”

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