Food Venture Financing News - Weekly Issue No. 35
In This Issue:
- Stimulus Package - Congress Getting Back to Work?
- SBA Wins a (Temporary) Reprieve From Disclosing PPP Loan Recipients
- Food Venture Financing Trends
- Corporate Venture and Private Equity Funds
- Links to Relevant Content and Events
Stimulus Package - Congress Getting Back to Work?
- There is hope that the lame duck Congress will take action on various stimulus packages before January.
- House Speaker Nancy Pelosi indicated that Congressional attention to a Covid-Relief package was on "red alert."
- Some Senate Republicans have again pushed for reopening the Paycheck Protection Program.
- It is unclear whether congressional Democrats and Republicans can reach agreement on either course of action.
SBA Wins a (Temporary) Reprieve From Disclosing PPP Loan Recipients
- A federal judge granted a temporary stay to a prior order requiring the SBA to disclose the names, addresses and loan amounts for all PPP recipients.
- The prior order provided that this information was to be released by November 19.
- The SBA is seeking a permanent stay of the prior order, and may appeal the earlier decision.
Food Venture Financing Trends
- The strong demand for food delivery services has accelerated growth for food delivery companies. DoorDash filed its S-1 filing with the SEC announcing its IPO after a very successful year during the pandemic in 2020.
- Beyond Meat announced the acquisition of its Pennsylvania co-packer as a solution to reduce unit costs and control its supply chain during the COVID-19 pandemic.
- Archer Daniels Midland's corporate venture capital arm ADM Ventures announced its investment in Seventure's Health For Life Capital Fund II, a Paris-based venture capital fund that invests in health, nutrition, microbiota and digital health companies. ADM Ventures' interest in the microbiome investments signals its focus on dietary supplements, health and wellness, and immunity as a result of shifts in consumer behavior this year.
- Recent promising news regarding the COVID-19 vaccine prompted trade groups in the food and beverage CPG industry to request vaccination prioritization for essential workers in the food & beverage and agriculture sectors in the event the initial supply of the vaccine is limited.
Corporate Venture and Private Equity Funds
Our featured CPG private equity firm this week is PepsiCo Ventures Group.
- PepsiCo Ventures Group partners with emerging brands that offer functional benefits to consumers.
- As part of its plan to "futureproof" its portfolio, PepsiCo has in recent years acquired brands such as Health Warrior and fermented probiotic and kombucha drinks producer KeVita.
- PepsiCo initially took a minority stake in KeVita in 2013, helping it expand distribution.
- PepsiCo Ventures Group has launched its Nutrition Greenhouse accelerator in both Europe and North America. It works with startups which align with its "purpose with performance" mission of championing sustainable, long-term growth while having a positive impact on society and the environment.
Links to Relevant Content and Events
- Start-Ups in Recovery Mode During COVID-19: Food-Tech Leads the Race
- Utz Buys Chips and Salsa Maker on the Border for $480M
- Beyond Meat Acquires Co-Packer to Tackle Unit Costs
- Main Street Invests, Partners With Artisan Baker
- A Foretaste of Gen Z Foodtech: Micro-Bubbles, Aeroponic Potatoes, & Algae Omega-3
- New Restaurant Restrictions Put the Value of Restaurant Tech to the Test
- DoorDash Files for IPO, Could Start Trading in December
- ADM Backs Microbiome-Focused Venture Fund
- Symrise: "COVID-19 Has Accelerated The Naturalness Movement"
Naturally Bay Area QUICK BITES Lunchtime Series
Insights for Digital Growth in the New Normal
Wednesday, November 18, 2020, 12:00 - 1:00 p.m. PT
- 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
Naturally Bay Area Holiday Happy Hour & Mixer
Thursday, December 10, 2020, 4:00 - 5:00 p.m. PT
Holiday Toast & Virtual Mixer Hosted by Don Buder, Board Chair & Partner at Davis Wright Tremaine.
Pour yourself a holiday cocktail, and let's raise our glasses together before spending some time meeting, mingling, and spreading holiday cheer!
Naturally Bay Area's 3rd Annual Pitch Slam
Thursday, February 11, 2021
Here's your chance to show what you've got — get in front of top industry investors and your peers (virtually)! Naturally Bay Area's 3rd annual Pitch Slam competition celebrating the Bay Area's brightest brands, and giving the spotlight to a handful of local, emerging companies who will go head to head for a chance to win prizes worth thousands of dollars.
Apply to pitch here (Applications due Thursday, January 7th)
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.
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.