A Chicago startup that created a packaging insert that helps produce stay fresh longer has just raised a new round of funding to grow its business.
Hazel Technologies announced Thursday that it has raised a $3.26 million Series A round led by Chicago-based S2G Ventures, a food and agriculture venture fund led by Chuck Templeton, the founder of OpenTable. Other investors in the round include Rhapsody Venture Partners, Serra Ventures, Valley Oak Investments and Climate Impact Capital.
Hazel's goal is to reduce food waste with its packaging inserts that release an anti-fungal vapor that can extend the shelf life of fruits and vegetables. Companies simply drop Hazel's packets into their shipments and are able to prevent fungus and decay. Hazel says its technology can extend the life of produce by as much as three times the normal shelf life.
Studies suggest that roughly half of all U.S. produce is thrown away, and the New York Times found in 2015 that there are 60 million metric tons of food wasted each year in the U.S., with an estimated value of $162 billion.
Hazel, founded by Northwestern University grads, previously received $700,000 in grant funding from the United States Department of Agriculture SBIR program for its promising tech. Its customers include Dresick Farms International (DFI), the 10th largest grower by acreage in California, and Agritrade Farms International, a large vegetable grower in Latin America.
DFI said that after using Hazel for its melon business, it saw a 49% increase in marketable product after 30 days, which resulted in a cost savings of $10,000 per load.
"We haven't seen something that works this well in our many years in the melon industry," DFI's VP of Sales Ross Van Vlack said.
