Food Venture Financing News - Weekly Issue No. 49
In This Issue:
- Restaurant Revitalization Fund
- Paycheck Protection Program & Economic Injury Disaster Loan Advances
- Food Venture Financing Trends
- CPG Corporate Venture and Private Equity Funds
- Links to Relevant Content and Events
Restaurant Revitalization Fund
- The American Rescue Plan Act provides $28.6 billion to establish a "Restaurant Revitalization Fund," which will provide grants to restaurants and other food venues.
- Grants of up to $10 million (or $5 million per location) can be used to cover a recipient's "pandemic-related revenue loss" – generally, the difference between their 2019 and 2020 gross receipts.
- Grants will be reduced by the amount of any PPP loans previously received.
- Please see DWT's alert for more information.
Paycheck Protection Program & Economic Injury Disaster Loan Advances
- The America Rescue Plan Act adds over $7 billion in new funding to the Paycheck Protection Program (PPP).
- The Act also appropriates $15 million in additional funding for Targeted Economic Injury Disaster Loan Advances, and provides that amounts received from the SBA in the form of these advances shall not be included in the recipient's gross income.
Food Venture Financing Trends
- The Consumer Brands Association reports that demand for CPG products will continue to accelerate after the COVID-19 pandemic with a predicted 2021 annual rate of purchases between 7.4% and 8.5% higher than the rate in 2019.
- Foodtech companies continue to seek access to the public securities market with greater frequency. MeaTech 3D, an Israeli cultured meat tech company, launched its IPO in the U.S. and began trading on the NASDAQ last Friday.
- Venture financings continue to increase in the foodtech industry. Oishii, a vertical farming startup that grows strawberries, announced that it closed its $50 million Series A round, reflecting investor interest in indoor farming startups.
- The Natural Products Association declared its support for a California bill (SB-235) that will regulate CBD products in California and for federal legislation to regulate the CBD trade.
CPG Corporate Venture and Private Equity Funds
Our featured CPG corporate venture capital arm this week is Coca Cola's Venturing & Emerging Brands.
- Based in Atlanta, Georgia, Coca Cola's Venturing & Emerging Brands invests in beverage, environmental services, electronics, and entertainment software companies.
- Portfolio clients include:
- Iris Nova
Links to Relevant Content and Events
- ReGrained Funding to Fuel Upcycled Ingredient Development
- Alexandria REIT to Form $250 Million Agrifoodtech SPAC
- The Data Is In: Agtech Is Big and Will Keep Growing
- Stir Foods Broadens Footprint With Lancaster Acquisition
- Organic Ice Cream Maker Raises $1.4 Million
- AcreTrader Gets $12 Million Series A Funding for Farmland Investing & Purchasing Platform
- Vertical Farming Startup Oishii Raises $50 Million for Bee-Assisted, Carbon-Neutral Strawberry Cultivation
- Five Trends Emerging From COVID-19 That Will Redefine the Industry
- Israeli Cultured Meat Tech Developer MeaTech 3D Prices U.S. IPO at $10.30
- NPA, Others Support CA CBD Bill While Still Advocating for Federal Solution
- As COVID-19 Pandemic Accelerates Existing Trends in Frozen Specialty Foods, Packaging Suppliers Stand to Benefit
- Conagra in Talks to Sell Hebrew National to JBS
Naturally Bay Area's 2021 Quick Bites Series
Food & Beverage M&A Landscape in 2021: Challenges and Opportunities
Wednesday, March 17, 2021 - 12:00 – 12:45 pm PT
Preparing to sell your company? Looking for strategic partners to accelerate your growth? Interested to learn more about what's driving mergers and acquisition activity in the food and beverage sectors in 2021?
Don't miss Naturally Bay Area's Quick Bites lunchtime series panel discussion about the Food & Beverage M&A Landscape in 2021.
- Nick McCoy: Managing Director, Whipstitch Capital
- Kevin Krouse: Managing Director, Piper Sandler
- Jonathan Marshall: Partner, VMG Partners
- Don Buder: Moderator, Naturally Bay Area & Davis Wright Tremaine, LLP
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 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
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.