As it prepares to expand out of Colorado for the first time, FoodMaven announced Monday that it has raised a $15.3 million Series B to fuel that growth.
The Colorado Springs-based company sells oversupplied and imperfect produce and other food products to restaurants at a significant discount. The company operates an online marketplace system, matching buyers with available supply to limit food waste.
Prior to this round, FoodMaven has operated exclusively in Colorado. With this capital at its back, CEO Ben Deda said the company will make an acquisition in the Dallas-Fort Worth-area to expand its services into Texas.
Deda said the acquisition will add 15 employees to the company's 62 based here in Colorado.
"We expect ongoing hiring throughout 2020 in Colorado and Texas to support FoodMaven's growth," he said. On September 13, Deda was named CEO of FoodMaven, promoted from his previous role as COO.
The round came from the company’s Series A investor Tao Capital. Fine Line Group, the family office of Sasha and Ed Bass, also invested in this round of financing.
In 2020, FoodMaven will focus on building its company in Colorado and Texas, as it prepares for a larger rollout in the future.
"We will be refining the business model in Colorado and Texas to be ready for more significant expansion the following year when we hope to enter a handful of additional markets," Deda said.
FoodMaven has offices in Colorado Springs and Denver, and Deda said the state has provided a strong footing for the company grow.
"Colorado has been a tremendous market to build and grow FoodMaven’s model because chefs are very receptive to what we have to offer," Deda said. "Cities like Denver, where local food and sustainable offerings, are important to chefs and where there is an abundance of local farms and ranches nearby, are the best markets for FoodMaven."
FoodMaven was named a 2019 Colorado Inno on Fire Blazer winner in the Food and Beverage category.
