Start-up success: Evolv Ventures makes “disruptive” GrubMarket its first-ever investment
Deal is backed by Kraft Heinz
08 Apr 2019 --- Evolv Ventures, the US$100 million venture fund backed by Kraft Heinz, has announced GrubMarket as its first-ever investment. GrubMarket is a platform that sources local food directly from producers and delivers it directly to businesses and consumers. Terms of the agreement have not been released.
The role of start-ups in shaping the future of the food and beverage industry is pronounced. Innova Market Insights listed “Small player mindset” as one of its key trends for 2019, whereby small players are shaking up the food and beverage industry by taking on the classic Fast-Moving Consumer Goods (FMCG) giants in an increasingly high-tech arena.
It is clear that significant players are going small in their strategy to pick up on this trend. Some recent examples of incubator programs currently in place come from General Mills (301 Inc.), Nestlé (TERRA Accelerator), Danone (Danone Manifesto Ventures), Kraft Heinz (Springboard Incubator), Kellogg’s (eighteen94 capital) and Unilever (Unilever Ventures).
“We’re excited to invest in GrubMarket, a platform that is disrupting the food wholesale market,” says Steve Sanger, General Partner of Evolv Ventures. “GrubMarket plans to grow its presence and product offerings through both geographic and product expansion. Evolv Ventures is pleased to support its innovative founders.”
“We see a strong potential return from our investment, Sanger tells FoodIngredientsFirst. “Evolv Ventures will invest in emerging tech companies transforming the food industry. The venture fund aims to accelerate Kraft Heinz’s exposure to emerging technologies and businesses and leverage Kraft Heinz’s position in the industry to become the most value-added investor in the space.”
“We are very bullish on the future prospects of the company and the space and like any financially driven venture capital firm, we saw this as a great opportunity to invest now,” he notes.
Sanger says Evolv Ventures will use its experience as operators and venture capitalists to help support the business as needed.
“We’ll also bring company-wide expertise and networks to add value to the company,” Sanger adds. “We have a great relationship and see a lot of value for both partners.
Since Evolv Ventures announced the formation of its fund in October 2018, the fund has established itself by hiring a team of investors and entrepreneurs and is actively working and investing with leading companies in the space, such as GrubMarket, says the start-up.
