Food Venture Financing News - Weekly Issue No. 47
In This Issue:
- SBA "Pauses" PPP Applications for All but Smallest Borrowers
- PPP Reforms Made to Support Smallest Businesses
- Food Venture Financing Trends
- CPG Corporate Venture and Private Equity Funds
- Links to Relevant Content and Events
SBA "Pauses" PPP Applications for All but Smallest Borrowers
- The SBA will not process any PPP loan applications for entities that employ more than 20 people until March 10, 2021.
- The employee count is per individual employee, not based on full-time equivalent (FTE), so seasonal, part-time, and full-time employees all count as an "employee" regardless of the number of hours worked.
- The PPP loan program expires on March 31, 2021.
PPP Reforms Made to Support Smallest Businesses
The Biden Administration announced PPP changes to support small businesses. These changes include:
- Modifications to the loan calculation formula for sole proprietors, independent contractors and self-employed individuals to allow the use of gross, rather than net, income when calculating the eligible loan amount.
- $1 billion has been set aside for sole proprietors, independent contractors and self-employed individuals in low-to-moderate income areas.
- Businesses with owners that have non-fraud felonies may now apply for a PPP loan without any time restrictions.
- Rules have been eliminated that restricted businesses from receiving PPP loans if any 20% owners are delinquent on federal student loan debts.
- The SBA has clarified that small businesses owned by non-U.S. citizens who are legal residents of the U.S. may apply for PPP loans.
Food Venture Financing Trends
- The agrifoodtech industry raised $26.1 billion globally in 2020, which represents a 34.5% increase from 2019.
- Beyond Meat recently announced strategic partnerships with McDonald's and Yum Brands, expanding the presence of plant-based meat products in restaurant chains.
- Plant-based meat startups continue to raise money in 2021. Mosa Meat, the world's first cell-based hamburger, announced it raised an additional $10 million in its Series B round, completing its $85 million Series B raise.
- Food industry experts expect foodtech and agritech companies will have successful capital raises in 2021 due to increased emphasis on ecommerce and automation throughout the industry.
- Clif Bar announced that it plans to double its sales to $2 billion by focusing on analytics and innovation and expanding its portfolio to include healthy snack products. Clif Bar also plans to improve its environmental footprint with a focus on becoming climate net positive.
CPG Corporate Venture and Private Equity Funds
Our featured CPG private equity firm this week is Digitalis Ventures.
- Digitalis is a New York City-based venture capital firm that invests in solutions to complex problems in human and animal health, such as biology as engineering, one health, precision health, and consumerization of healthcare.
- Portfolio clients include:
- Base 5 Genomics
- Digitalis's affiliate, Companion Fund, invests in the future of pet care, including digital health, services, diagnostics, nutrition, and therapeutics.
Links to Relevant Content and Events
- Senate Parliamentarian Rules Against Including $15 Minimum Wage Increase in COVID-19 Relief Package
- David Chang, Sweetgreen Co-Founder Nicolas Jammet Invest in Foxtrot Market During Series B Funding Round
- Moku: Hawaii-Based Vegan Brand Launches Mushroom Jerky Line Backed by Thrive & Casper Founders
- Data Analytics Company DTN Acquires On-Farm Data Startup Farm Market iD
- Beyond Meat Signs Global Partnerships With McDonald's and Yum Brands
- Oatly Files for IPO
- 2020's Agrifoodtech Investment Story Speaks of Resilience, Maturity, and Big Bets on What Comes Next
(Download the report here)
- 'No Longer a Niche, Experimental, and Risky Sector': Agrifoodtech Pulls in $26.1 Billion in 2020
- Mosa Meat Raises $10 Million to Scale Cell-Based Meat
- Will Foodtech's Funding Streak Continue in 2021? (Looks Like it!)
- Clif Bar Adopts Ambitious 'Transformation' To Expand Portfolio, Consumer-Reach & Sustainability
- Foxtrot Market Closes $42 Million in Series B Investment Round
Empower Project: Power Pitch for Black-Owned CPG Companies
Friday, March 5, 1-3 pm CST
This is a fast-paced virtual event where five Black-owned CPG companies will pitch their business for a chance to win over $500k of goods and services! The Power Pitch will be held on The Natural Products Expo Virtual Platform on March 5. To access this event simply register below. Once you qualify to attend you'll have access to all events hosted on the Natural Products Expo Virtual platform, so no need to register for each one.
Hirshberg Entrepreneurship Institute Webinars
Yes We Can: Perspectives and Strategies for a Successful 2021
These webinars will provide practical perspectives and real world advice for navigating financing, cashflow, retail, distributor, and eComm challenges in the year ahead presented by seasoned experts with opportunities for you to get your questions answered by the presenters.
March 3 – Brands Launching in the Current Market
Speakers: Nicole Bernard Dawes, Founder & CEO, Nixie Sparkling Water Matt McLean, Co-Founder, Uncle Matt's Organic
March 10 – The Latest Consumer and Market Trends and Insights
Speakers: Carlotta Mast, Sr. Vice President and Market Leader, New Hope Network Steve French, Sr. Vice President, National Marketing Institute
March 17 – How to Successfully Pitch for $$
Speakers: Andy Whitman, Managing Partner, 2x Consumer Growth Partners Paul Richardson, Co-Founder and Managing Partner, Renewal Funds
March 24 – Navigating Costco & Thrive
Speakers: Jeremy Smith, President and Founder, Launchpad Second speaker TBD
Register at hirshberginstitute.com
NEW ACCELERATOR COHORTS
The FS6 Business Accelerator – Cohort 7
IInterested applicants must submit a completed application by March 5. Apply here.
The FS6 accelerator program prioritizes working with entrepreneurs who are innovating across the food and agriculture landscape and building a food system that focuses on health, sustainability, and justice.
Questions about the program? Take a look at their FAQs page or check out the replays for episodes One and Two of the Startup Refresh web series. Each episode kicks off with an overview of the accelerator program and is followed by a topic chosen with entrepreneurs in mind. Join Episode Three on March 4.
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.