Starbucks is making a $100 million bet on food startups in a new venture fund managed by Chicago's Valor Equity Partners.
Starbucks announced Wednesday that it is investing $100 million in Valor Equity's new Valor Siren Ventures Fund, which will invest in food and retail startups. The fund says it will invest in companies developing technologies, products, and solutions relating to food or retail, and plans to raise an additional $300 million in the coming months from other investors.
Starbucks said it will also explore direct commercial arrangements with startups it invests in through the fund.
"...we are inspired by, and want to support the creative, entrepreneurial businesses of tomorrow with whom we may explore commercial relationships down the road," Kevin Johnson, Starbucks' president and CEO, said in a statement. "This new partnership with Valor presents exciting opportunities, not only for these startups, but also for Starbucks, as we build an enduring company for decades to come.”
Valor Equity, led by Antonio Gracias, has become one of Chicago's top growth-stage investment firms since it launched in 1995. It's known for its investments in SpaceX and Tesla, but it has also backed local startups such as Catalytic, Fooda and Tovala.
Last July, Valor Equity raised $1.05 billion for its Fund IV. It has raised more than $2 billion to date.
The new Valor Siren Ventures Fund is the latest major fund with Chicago ties to focus on food startups. Last year Kraft Heinz launched Evolv Ventures, a $100 million venture fund to back tech startups disrupting the food industry. Tyson Foods launched a $150 million fund in 2016, which is also based in Chicago.
