Food Venture Financing News - Weekly Issue No. 34
In This Issue:
- SBA Ordered to Disclose All PPP Loan Recipients
- SBA Releases New Questionnaire for PPP Loans Above $2M
- Food Venture Financing Trends
- Corporate Venture and Private Equity Funds
- Links to Relevant Content and Events
SBA Ordered to Disclose All PPP Loan Recipients
- A federal judge ordered the SBA to disclosure the names, addresses, and loan amounts for all PPP recipients.
- The SBA previously released this information for loans above $150,000, but only released summarized and anonymized data for loans under $150,000.
- Given that there were about 4.5 million PPP loans under $150,000 (around 86% of all PPP loans), it is unclear how this information will be released.
SBA Releases New Questionnaire for PPP Loans Above $2M
- The SBA released a new questionnaire for PPP recipients above $2 million to evaluate the borrower's "necessity" certification.
- There are two forms: one for For-Profit Borrowers and the other for Non-Profit Borrowers.
- The forms are due within 10 business days after receipt from the lender.
- As a reminder, Treasury Secretary Mnuchin announced in April that all PPP loans above $2 million will be audited.
Food Venture Financing Trends
- M&A activity continues to increase during Q4 of 2020 as large F&B companies make significant acquisitions in traditional and foodtech sectors.
- Food and beverage companies are focusing on ways to increase gender and racial diversity at a managerial level. PepsiCo recently announced its goal to increase Black representation and Hispanic representation in management positions by 30% and 10% by 2025, respectively, as well as to increase gender parity in management at a global level.
- Plant-based proteins, natural ingredients, and sustainable foodtech solutions will be the focus of foodtech companies for the next year.
- Consumers are expected to continue to purchase food products that are suitable for home cooking through next year as remote work will likely continue into 2021.
Corporate Venture and Private Equity Funds
Our featured CPG private equity firm this week is Encore Consumer Capital.
- Encore Consumer Capital has raised multiple funds since its formation in 2005.
- Encore targets investment opportunities that offer natural, organic, sustainable and other environmentally aware products.
- Portfolio companies include:
- 4505 Meats
- Ancient Harvest
- Cece's Veggie Co.
- Full Sail Brewing
- Navitas Organics
- KYLA Hard Kombucha
- Lion Brewery
Links to Relevant Content and Events
- How PepsiCo Plans to Increase Gender, Racial Diversity in Management by 2025
- 8 Innovative Startups to Watch at The Future Food-Tech Summit 2020
- Foodtech Startup The Protein Brewery Bags €22M
- B&G Foods Predicts Elevated Sales Will Continue Next Year: 'Consumers Will Be Working From Home Even After a Vaccine Is Available'
- Ingredion to Acquire Full Ownership of Verdient Foods
- Food Technology Company Receives $150 Million in Funding
- Koch Separation Solutions Acquires Processing Tech Firm Relco
- A Foretaste of Gen Z Foodtech: Micro-Bubbles, Aeroponic Potatoes, & Algae Omega-3
- Meat Processors Expedite Plans to Implement Robotics as Pandemic Increases Pressure
- Plant-Based Milk Made by AI Debuts in the U.S.
- Aphria Inc. Announces Strategic Entry Into the United States With an Agreement to Acquire SweetWater Brewing Company
- Delivery Startup goPuff Acquires BevMo for $350M
Naturally Bay Area QUICK BITES Lunchtime Series
Insights for Digital Growth in the New Normal
Wednesday, November 18, 2020, 12:00 - 1:00 pm P.T.
- Jessica Malach: VP Partnerships & Insights at Social Nature
- Christie Lee: Founder of Nourishing Food Marketing
- Jennifer Berliner: Moderator, Naturally Bay Area & Head of Go To Market, Planet FWD
Please check out DWT's newly re-launched Startup Law Blog
At 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.
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