Investors are placing increasing bets on two traditional industries confronted by changing consumer tastes: food and beverage businesses and agriculture.
One significant new contributor to that trend is S2G Ventures in Chicago. The firm has closed on $125 million for a debut fund to invest exclusively in agriculture and food ventures. The firm has already backed eight companies, and deployed 18% of its fund to these deals.
S2G, which stands for “seed to growth,” was co-founded by Managing Directors Victor E. Friedberg, a co-founder of the Launch accelerator; Sanjeev Krishnan, a former investor with CLSA Capital and the Global Environment Fund; and OpenTable founder and former Chief Executive Chuck Templeton.
The third quarter of 2015 saw record amounts of capital allocated by venture capitalists to food and beverage businesses and the sector, with $368.7 million and $113.57 million flowing to the sectors, respectively, according to industry tracker Dow Jones VentureSource.
Mr. Friedberg said the firm is looking specifically at “soil to shelf” businesses within food and agriculture, or companies that help deliver what consumers and corporations increasingly demand of the food system: good nutrition, organic products, food that is produced locally, and absolute transparency and authenticity in whatever they buy and eat.
Read VentureWire for the full story on S2G Ventures and trends driving its food investments.