Food Venture Financing News - Weekly Issue No. 28
In This Issue:
- SBA's PPP Forgiveness Portal
- Pressure Increases to Reopen PPP
- Food Venture Financing Trends
- CPG Corporate Venture Funds
- Links to Relevant Content and Events
SBA's PPP Forgiveness Portal
- The SBA opened its “forgiveness portal” on August 10, but so far lenders have only submitted roughly 56,000 applications (out of 5.2 million PPP loans).
- No data has been provided as to the SBA’s action or inaction on existing applications.
- Many borrowers are holding off on submitting applications in the expectation that Congress may make additional changes, including possibly forgiving all PPP loans under $150,000.
Pressure Increases to Reopen PPP
- Federal Reserve Chair Jerome Powell, in testimony last week to a House subcommittee, argued the PPP was best placed to assist small business among government relief programs.
- Powell argued that the PPP was a better fit for these business than the Main Street Lending Program, which has received an underwhelming reception so far.
- Approximately $138 billion in PPP funds remained untapped when the program closed in early August.
Food Venture Financing Trends
- In the past decade, the number of deals in the bio-engineered food sector has increased from a few deals per year to hundreds of deals annually.
- The intersection of food and technology is increasingly drawing large investments from technology-focused VC firms.
- Food and beverage startups in indoor farming, fermentation technology, and plant-based proteins have recently closed priced equity rounds, signaling more convergence between companies and investors in setting valuations.
CPG Corporate Venture Funds
Our featured CPG corporate venture investment fund this week is Thai Union Group.
Thai Union Group, which owns the John West tuna brand, launched its venture fund in 2018 to fund "innovative companies that are developing breakthrough technologies in food-tech".
Thai Union Group has committed to invest US $30mm in alternative protein, functional nutrition and value chain technology.
Links to Relevant Content and Events
- Agrifood Investors Head To The Beach - But Not For Vacation
- Innovative Food Startups Raised More in H1 2020 Than They Did in the Whole of 2019
- Venture Capital Floods Into Food-Tech. Growing Consumer Interest in Sustainable Food Has Not Escaped Early-Stage Investors
- Supply Chain Digitizer Silo Raises $9m Series A From a16z
- Leaf Raises $2m Seed Round to Expand API Offering for Agrifoodtech Startups
- Revol Greens Raises $68M to Build Out High-Tech Greenhouses in the U.S.
- 'Food Tech' Company Benson Hill Formally Opens New Headquarters in Creve Coeur
- Agtech Platform Silo Raises $9M to Fight Food Waste in the Supply Chain
- FTW Ventures, an Early-Stage VC, Has Launched a New Fund to Support Food and Agri-Tech Start-Ups
- Investors, Brands Look Beyond Finished Plant-Based Meats to Supporting Ingredients, Technology
- Not Chicken: Plant-Based Protein Brand Daring Raises $8 Million
- Phytolon Secures $4.1 Million in Funding for Natural Food Color Tech
- Mosa Meat Raises $55M For Cell-Based Meat
Naturally Bay Area Annual Board Review Preparation Bootcamp
A 90-minute interactive training led by industry icons & functional experts to help you and your team prepare for your end-of-year Board Review
Thursday, October 8th (1:30 - 3:00 p.m. PT)
- 60-minutes workshopping essential elements of Year-End Review
- 30-minutes networking within functional cohorts
Attendees will receive a packet of Board Review Preparation resources to support you & your team:
- Free insights decks
- Meeting templates
- Free design support
- Consulting offers
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.