The Emergence of Food Startups

Food Is an Experience

In recent years, food has morphed from a necessity to an experience and a movement. People care more about what they are eating, where they are eating and how it looks in its packaging or on a plate. This upsurge of attention to the food industry has spurred a boom in food startups; especially those focused on healthier initiatives, and venture capitalists are hungrily eating them up. According to TechCrunch.com, venture capitalists raised $48 billion for food startups in 2014, a number that hadn’t been reached since 2000.

Most of these young startups are planting the seeds for a food industry revolution that will bring increased focus to bettering the food system and creating avenues for all incomes to have access to fresh, health-conscious foods. For example, Thrive Market, an online shopping club offers over 3,000 natural and organic products from top brands at a 25%-50% discount and delivers straight to member’s doors. To make these products even more accessible, they give a free membership to a family in need, for each new paid membership.

Freshly Food Delivery

Freshly, a gourmet food delivery company, aims to better the food system by supplying the busy professional with high-quality, nutritious meals without the cooking or shopping. Similar in concept is Blue Apron, whose goal is to take the stress out of cooking by delivering fresh ingredients and step by step directions to give even the most amateur cooks the ability to prepare their own meals.

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Tech Food Race

These delivery based companies, as well as other similar food businesses have incorporated technology in order to reach wider audiences and provide convenience. Now consumers are trading their shopping carts for iPad screens and allowing for fresh foods to be ordered with the tap of a finger

Technology is also being utilized to develop more sustainable and fortified foods, improve packaging and increase consumer interaction through apps and data collection services. Food + Tech Connect is a network that links food startups with tech resources to help them kick-start their business. These industry pairings are contributing to a transformation in the food system and the relationship between food, business and consumer.

Stiff Competition

According to a recent article for Huffington Post, there are currently more than 80,000 food companies in the industry and thousands more developing each year. Though more and more entrepreneurs are coming to eat at the food industry’s table, it seems consumers cannot get their fill.  Last year, the food and agriculture industry raised a record-breaking $2.36 billion across 264 financing deals. Looking ahead, 2015 could be working up an even bigger appetite.