Denver-based food tech startup Bitewell landed a $200,000 investment for its digital food "farmacy" platform after appearing on Entrepreneur Media's "Entrepreneur Elevator Pitch" on Wednesday.
"Entrepreneur Elevator Pitch" is a reality series where entrepreneurs pitch their ideas to investors with a 60-second elevator pitch. If the three-person investor panel likes the pitch, they invite the entrepreneur to the boardroom to talk through a potential deal.
After pitching to Marc Randolph, co-founder and former CEO of Netflix; Kim Perell, a serial entrepreneur and CEO of investment firm 100.co.; and Jonathan Hung, a managing partner at Entrepreneur Ventures, Bitewell CEO and co-founder Samantha Citro Alexander landed a deal with Perell.
Citro Alexander went on the show asking for a $1 million investment for 5% stake in her startup, valuing Bitewell at $20 million. Perell countered by offering $200,000 at a $16 million valuation.
"At the end of the day, you're just betting on the person and I think that you have what it takes to build a really great company," Perell said on the show.
Unlike other pitch shows, "Entrepreneur Elevator Pitch" doesn't take equity or sales cuts from businesses that appear on the show. The investment terms are between the company and the investor, Citro Alexander said via email.
Citro Alexander won Perell over with her concise pitch that explained Bitewell and its success. Bitewell hit nearly $1 million in revenue this year and predicts revenue to grow by five times next year.
Having raised $6 million to date, Citro Alexander didn't go on the show for the investment but rather for the audience reach, which she said is the "real power" of investing shows like "Entrepreneur Elevator Pitch" and "Shark Tank."
Citro Alexander told Colorado Inno that the 60-second pitch was an interesting challenge but that she thrives in high-pressure situations.
"I very rarely prep for public speaking opportunities. This format is a bit different, though — you only have 60 seconds to say everything you want to say," she told Colorado Inno via email. "I spent a few hours the night before perfecting the 60-second pitch. Although I've spoken at industry-specific conferences like HLTH, it was important that we made every second count with an audience that may not be as familiar with food-as-medicine and the importance of food for health overall, so we practiced relentlessly to make sure our message was clear and compelling to the investors."
Bitewell will use the fresh capital to fund research efforts, continue building out its tech and data infrastructure and grow its 20-person team, with a focus on sales positions,
Founded in 2020, the Bitewell platform takes a user's health history and dietary restrictions to help them find healthy food that fits their diet. Each item it recommends, whether it’s take-out from a nearby restaurant or an item that can be delivered to one’s house, is rated on a scale of one to 10. A 10 indicates items that best fit a user’s needs and goals.
This year, Bitwell rolled out a two-tier business-to-business model. It works with employers and insurance providers to provide employees access to the food-scoring platform through subscription and the ability to order food and pre-made meals for pick up or delivery through Bitewell. Citro Alexander said on the show that the subscriptions, which range from $1 per month per user to $5 a month per user, account for 20% of Bitewell's revenue. The remaining 80% comes from food sales.
With the B2B partnerships, 5,000 people have access to Bitewell's platform and 91% have begun using it. Citro Alexander said Bitewell also has an 85% weekly active usage rate.
Bitewell also moved into a 14,000-square-foot headquarters this year and will launch its food "farmacy" — which provides patients with fresh or frozen food that aligns with a physician's prescription — in early 2024. The company said it uses the term "farmacy" as opposed to pharmacy because it doesn't touch pharmaceutical science.
Of the funds Bitewell has raised, there are "very few" women on the capital table, Citro Alexander said on the show. Her goal is to bring more women to the table, something Perell helps achieve.
Bitewell isn't the only Colorado company to pitch investors on TV. Startups like Denver-based mcSquares and Carbondale-based mountainFLOW eco-wax secured deals with investors on ABC's "Shark Tank" in 2020 and 2021. Laundry innovator Wad-Free and virtual wedding startup Wedfuly followed suit in November 2021. Not all companies that appear on pitch shows take investment though. Broomfield-based Xero Shoes, known for its barefoot-style running shoes, turned down an investment from "Shark Tank" in 2013. (Earlier this year, Xero Shoes opened a Denver showroom.)
