Food waste accounts for hundreds of billions of dollars of lost revenue in the United States each year, according to a report by the Food and Agriculture Organization of the United Nations.
In an effort to close that food waste gap through an online marketplace, a Colorado startup FoodMaven just raised $10 million in funding.
The Colorado Springs-based company announced late last week that it had closed the round, led by Tao Capital Partners.
FoodMaven, which launched in 2015, 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.
This funding round will provide support for FoodMaven’s ongoing growth, including the company's strategy of purchasing complementary food businesses as it enters new markets, a release said.
FoodMaven recently announced the closing of Anderson Beef in Denver as part of this strategy. The company also announced plans to enter Dallas as its next market early this year.
“We are deeply grateful for our investment partners who share our vision of a for-profit, for-impact company, addressing issues in the food system that leads to so much food waste,” Patrick Bultema, FoodMaven chairman, CEO and co-founder, said in a statement. “This financing provides support for growing into additional markets this year, as we also ramp up our investment in technology and innovations.”
This round provides momentum into a $50 to $70 million Series B projected for early in the second quarter of this year, the company said in a release.
“It is a pleasure to join such a passionate group of brilliant people working to address the elimination of food waste in the pursuit of a sufficient and sustainable global food system,” said Isaac Pritzker who is a principal at Tao Capital Partners.
San Francisco-based Tao has an impressive investment portfolio, investing in Tesla, Uber, Solar City and Denver's MJ Freeway. The firm focuses on technology, alternative energy and transportation, healthcare, education, sustainable food and agriculture, consumer and real estate businesses that have a positive impact.
FoodMaven is based out of Colorado Springs, but opened a Denver office in July 2017. The company raised an $8.6 million Series A in January 2018.
