COOKING UP A STORM
Next
big tech may be brewing in a kitchen
Silicon
Valley Focusing On New Kinds Of Food, Web Delivery Services & Ready-To-Cook
Kits
What if the next big thing in tech does not arrive on your smartphone or in the cloud? What if it lands on your plate? That idea is enticing a wide group of venture capitalists in Silicon Valley into making big bets on food.
In some cases, the goal is to connect restaurants with food purveyors, or to create on-demand delivery services from local farms, or ready-to-cook dinner kits. In others, the goal is to invent new foods, like creating cheese, meat and egg substitutes from plants. Since this is Silicon Valley money, though, the goal is often nothing short of grand: transforming the food industry.
Some investors say food-related startups fit into their sustainability portfolios, because they aim to reduce the toll on the environment of producing animal products. For others, they fit alongside health investments like fitness devices. Still others are eager to tackle a real-world problem.
In 2012, VC firms funneled about $350 million into food projects, and investment deals in the sector were 37% higher than the previous year, according to a recent report by CB Insights, a VC database. In 2008, that figure was less than $50 million. Celebrities from Hollywood (Matt Damon) and the tech world more broadly (Bill Gates) have also joined in.
This wave of startups is seeking to use technology to change the way people buy food, and in some cases to invent entirely new foods. Investors are also eager to profit from the movement toward eating fewer animal products and more organic food.
Hampton Creek Foodsuses about a dozen plants, including peas, sorghum and a type of bean, with properties similar to eggs, to make an egg substitute. Two large food companies are using the egg substitutes in cookies and mayonnaise, and he said he planned to sell them to consumers next month.
Unreal makes candy that the founders say has no artificial flavours, preservatives, hydrogenated fats or genetically modified ingredients, with at least 25% less sugar than similar candy on the market. Lyrical Foods makes cheese from almond milk and macadamia milk. Nu-Tek Salt uses potassium chloride instead of sodium chloride to lower sodium. Beyond Meat and Sand Hill Foods are making veggie burgers that their investors say taste and grill like beef.
GoodEggs, a web service, is a market place for farmers and chefs who make artisanal goods like cheese, honey and jam. Kitchensurfing is a site that lets people hire chefs to give pasta-making lessons or prepare a Thai meal. Bill Maris, a partner at Google Ventures, Google’s investment arm, sounds a note of caution. “These firms are trying to cash in on new technology that is changing,” he says, but adds, “In 2000, the same questions were asked about YouTube and no one knew how it would even work, let alone become a business.” NYT NEWS SERVICE
What if the next big thing in tech does not arrive on your smartphone or in the cloud? What if it lands on your plate? That idea is enticing a wide group of venture capitalists in Silicon Valley into making big bets on food.
In some cases, the goal is to connect restaurants with food purveyors, or to create on-demand delivery services from local farms, or ready-to-cook dinner kits. In others, the goal is to invent new foods, like creating cheese, meat and egg substitutes from plants. Since this is Silicon Valley money, though, the goal is often nothing short of grand: transforming the food industry.
Some investors say food-related startups fit into their sustainability portfolios, because they aim to reduce the toll on the environment of producing animal products. For others, they fit alongside health investments like fitness devices. Still others are eager to tackle a real-world problem.
In 2012, VC firms funneled about $350 million into food projects, and investment deals in the sector were 37% higher than the previous year, according to a recent report by CB Insights, a VC database. In 2008, that figure was less than $50 million. Celebrities from Hollywood (Matt Damon) and the tech world more broadly (Bill Gates) have also joined in.
This wave of startups is seeking to use technology to change the way people buy food, and in some cases to invent entirely new foods. Investors are also eager to profit from the movement toward eating fewer animal products and more organic food.
Hampton Creek Foodsuses about a dozen plants, including peas, sorghum and a type of bean, with properties similar to eggs, to make an egg substitute. Two large food companies are using the egg substitutes in cookies and mayonnaise, and he said he planned to sell them to consumers next month.
Unreal makes candy that the founders say has no artificial flavours, preservatives, hydrogenated fats or genetically modified ingredients, with at least 25% less sugar than similar candy on the market. Lyrical Foods makes cheese from almond milk and macadamia milk. Nu-Tek Salt uses potassium chloride instead of sodium chloride to lower sodium. Beyond Meat and Sand Hill Foods are making veggie burgers that their investors say taste and grill like beef.
GoodEggs, a web service, is a market place for farmers and chefs who make artisanal goods like cheese, honey and jam. Kitchensurfing is a site that lets people hire chefs to give pasta-making lessons or prepare a Thai meal. Bill Maris, a partner at Google Ventures, Google’s investment arm, sounds a note of caution. “These firms are trying to cash in on new technology that is changing,” he says, but adds, “In 2000, the same questions were asked about YouTube and no one knew how it would even work, let alone become a business.” NYT NEWS SERVICE
Jenna
Wortham & Claire Cain Miller TOI130430
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