Former McDonald's CEO Don Thompson may soon have half a billion dollars to invest in food businesses of the future.
Thompson's VC firm Cleveland Avenue is looking to raise up to $500 million in its second fund, according to an SEC filing last week. The fund has yet to receive any commitments from limited partners, and it's unclear when the fund will close or how much it will ultimately raise. But it's clear Cleveland Avenue is preparing to write some significant checks to food entrepreneurs in the coming years.
A request for comment from Cleveland Avenue regarding its new fund was not returned.
Cleveland Avenue launched in 2017, two years after Thompson left his role as chief executive of McDonald's. Cleveland Avenue, named after the street where Thompson grew up in Chicago's Cabrini-Green community, has backed a range of food and beverage upstarts including Chicago-based Farmer's Fridge, Food Boss and Bartesian.
The young VC firm has already reaped the rewards of a successful exit in Beyond Meat, the plant-based protein company that went public in 2019. Cleveland Avenue owned 5.4% of Beyond Meat at the time of its IPO, valuing the firm's stake at around $65 million. Beyond Meat's shares have gained over 140% so far this year.
Cleveland Avenue would be the latest Chicago VC firm to embark on a new $100 million-plus fund. In August, Chicago's S2G Ventures, a food and agriculture-focused VC firm, announced plans to invest $100 million in seafood startups and other ocean ventures. Hyde Park Venture Partners announced in 2019 that it closed its third VC fund at $100 million. Valor Equity, a fund led by Antonio Gracias that's backed Tesla and SpaceX, raised more than $1 billion in 2018 for its fourth fund. And 7wire Ventures revealed in an SEC filing this month that it has raised $48 million toward a $150 million target for its second fund.
