Food Venture Financing News - Weekly Issue No. 27
In This Issue:
- Broad Stimulus Package Appears Increasingly Unlikely
- Another Round of PPP?
- Possible Changes Ahead for Main Street Lending Program
- Food Venture Financing Trends
- CPG Corporate Venture Funds
- Links to Relevant Content and Events
Broad Stimulus Package Appears Increasingly Unlikely
- Although the House is back from its recess, Congress made no substantive progress on a stimulus bill last week.
- There is a huge gap between the $650 million package backed by Senate Republicans and the $2.2 trillion package backed by House Democrats.
- As each week passes it is less likely a stimulus package will be passed before the November election.
Another Round of PPP?
- While negotiations on a broad stimulus package have stalled, there is a chance that the Paycheck Protection Program could be reopened.
- Legislation introduced by House Republicans last week called for reopening the PPP and enabling small businesses with fewer than 300 employees to take a second PPP loan.
- Around $138 billion in untapped funds remained in the program when it stopped accepting new applications in early August.
Possible Changes Ahead for Main Street Lending Program
- Fed Chair Jerome Powell noted last week that changes would be made to the MSLP.
- The Fed revised its FAQs for banks to note that "underwriting should look back to the borrower's pre-pandemic condition and forward to their post-pandemic prospects," suggesting that banks may be declining loans because of borrowers' poor financial state relating to the COVID-19 crisis.
Food Venture Financing Trends
- The Good Food Institute stated in a recent report that approximately $435 million has already been invested in fermentation companies in 2020. This represents approximately one-third of the investments in the alternative protein sector this year.
- The reliance on online grocery will continue to increase after the pandemic. A recent report by Mercatus indicates that online grocery sales will comprise 21.5 percent of total grocery sales by 2025.
- Although investment in the plant-based-protein sector has accelerated, female founders in the sector highlighted that they continue to face gender and racial biases in fundraising or their roles as founders, according to a report by the Vegan Women Summit.
CPG Corporate Venture Funds
Our featured CPG corporate venture investment fund this week is Fonterra.
- In March 2017, Fonterra, the world's largest dairy exporter, launched the Fonterra Ventures Co-Lab.
- In 2018, Fonterra announced the Co-Lab’s first "strategic partnership" with a stake in Germany-based sports-nutrition firm Goodminton.
Links to Relevant Content and Events
- LA's Burgeoning Agtech Industry Sees Green Acres Ahead
- 4 Ways Food Tech Can Lead to More Resilient and Sustainable Food Systems
- Investments in Fermentation Companies Picking Up Pace
- Surplus Food Startup Hungry Harvest Closes Series A Round at $13.7M
- Lewis & Clark Leads $27M in Growth Capital Funding for Brightseed
- AgTech NEXT 2020: Impossible’s Pat Brown in His Own Words, Corporate Partnerships, and the New Realities of “Risk” After Covid
- Kraft Heinz to Sell Some Natural Cheese Businesses To Lactalis Group For $3.2 Billion
- Nestlé Is Ready to Buy After 18 Months Of Divesting Brands, But It Will Do So Cautiously, CFO Says
- The Good Food Institute - State of Industry Report - Fermentation: An Introduction to a Pillar of the Alternative Protein Industry
- The Evolution of the Grocery Customer
- Female Founders Report Pervasive Investment Inequities In Plant-Based Food Tech Sector
- Lavva Tests Plant-Based Yogurts in Target, Kroger, Gears Up For Launch Of ‘Decadent’ Keto-Friendly Line
DWT's Women Entrepreneurs Boot Camp
Tuesday, October 6th, 2020 (12:00 - 3:30 p.m. EDT) and Thursday, October 8th, 2020 (12:00 - 1:30pm EDT)
DWT's Project W helps female-founded companies accelerate growth and successfully raise capital. DWT's Entrepreneurs Boot Camp faculty includes Sarah Masoni from Oregon State University's Food Innovation Center, Caroline Bushnell from Good Food Institute and members of venture capital funds such as Steve Case's Rise of the Rest, GreatPoint Ventures (an early investor in Beyond Meat), Finistere Ventures, New Crop Capital and ff Ventures.
Naturally Bay Area Multi-Function Bootcamp
A 90-minute interactive training led by industry icons & functional experts
Thursday, October 8th (1:30 - 3:00 p.m. PT)
- Informational presentations from industry rock stars
- Break-out sessions organized by functional working cohort
- Take-home resources:
- Insights decks
- Meeting templates
- Free design support
- Consulting resources & offers
Invite the Entire Team!
We'll cover wide-ranging topics that should be addressed in annual Board Reviews & functional deep dives to address unique needs for each role in your company.
Please check out DWT's newly re-launched Startup Law Blog
At Davis Wright Tremaine LLP (DWT), we are proud to have one of the largest Food & Beverage legal practices in the country, with over 40 attorneys representing food innovators, entrepreneurs, and investors at every level of the food chain, from Farm to Label.
Please contact our Food and Beverage team if we can assist you in any way in these unprecedented times.
The facts, laws, and regulations regarding COVID-19 are developing rapidly. Since the date of publication, there may be new or additional information not referenced in this advisory. Please consult with your legal counsel for guidance.
DWT will continue to provide up-to-date insights and virtual events regarding COVID-19 concerns. Our most recent insights, as well as information about recorded and upcoming virtual events, are available at www.dwt.com/COVID-19.