March 10, 2017

Disruptive food and beverage accelerator fund AccelFoods announced it has expanded its second fund by $15 million to $35 million, and has added new investments.

AccelFoods was originally founded by Jordan Gaspar and Lauren Jupiter through a $4 million fund which closed in January 2014. This was followed by a  debut of the firm’s second $20 million fund in February 2016, followed by the decision to transition its investment model from a cohort structure, to one more aligned with a traditional investment vehicle toward the end of 2016.

Over the company’s timeline, Gaspar and Jupiter have built a portfolio of 28 innovative and disruptive brands including Exo, a producer of protein supplements and protein bars derived from crickets; Tea Drops, a producer of loose tea that dissolves in hot water without the need for a tea bag; Brami, a producer of lupini bean snacks; and mushroom-based superfood company Four Sigmatic.

New Capital, New Investments

Although Jupiter told Tech Crunch that the company is not at liberty to disclose its newest investors, she said, “They are a mix of high-net-worth individuals, family offices and corporates with strategic capabilities in the food and beverage space. The idea is that through our LP base, we bring together different parties with unique interests to move innovation forward.”

This new expansion to the firm’s second fund will enable the further pursuit of food and beverage innovation, and will support the company in bringing startups to the next level by offering “unprecedented access to industry resources in addition to increased investment capital,” said the company in a recent statement.

“Thanks to this newly expanded fund, comprised of many of the brightest minds and most progressive organizations in the food and beverage industry, AccelFoods is now able to propel the growth of our portfolio companies faster and further than ever before,” commented Jupiter.

Upon its founding in 2014, AccelFoods would back sub-$500,000 companies, however its rapid growth to $20 million, saw the fund backing companies that were seeing $5 million or more in revenue only two years after its launch.

AccelFoods’ co-founder and managing partner, Jordan Gaspar told BevNET, “With an operational approach to venture investing, we feel that we are now better able to respond to the evolving needs and opportunities presented to our founders.”

The fund now plans to make investments of between $250,000 and $3 million per transaction, over a wider range of stages in companies that generate up to $10 million in annual sales.

New investments for AccelFoods include natural, organic and non-GMO soda company, Tractor Soda Co.; organic aloe-based water company, Aloe Gloe; producer of non-GMO and gluten-free bouillon cubes, Bou;  cold brew coffee company, Wandering Bear Coffee; and plant-based beverage company, Koia.

Koia marks the first investment by AccelFoods in a plant-based protein company, reported Project Nosh – a category that the fund states it will continue to pursue.

“The AccelFoods organization continually seeks to bring together the key drivers in the food industry; manufacturers, distribution agents, retailers, and investors; all joining forces in an unprecedented willingness to cooperate,” said Gaspar. “Our expanded resources will have considerable impact on the next generation of food and beverage products being introduced to consumers.”

-Lynda Kiernan

Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration please contact Ms. Kiernan at lkiernan@globalaginvesting.com.