Denver-based start up FoodMaven is setting its sights on reducing the 40% of food that goes to waste each year. After closing their Series B funding round at $15.3 million this week, they’re showing that the business of good can be profitable as well.
Their business model focuses on obtaining and redistributing product, rather than buying it, and it operated by sourcing “imperfect” product from farmers and supermarkets and connecting it with buyers like restaurants, hotels, and universities. FoodMaven also donates 20% of what it doesn’t sell to non-profits like soup kitchens or homeless shelters.
The company is pioneering their business model in the Dallas-Fort Worth area but hopes to expand in the near future.
The company disclosed that major investors included Tao Capital, Sasha and Ed Bass, and a member of the Walton family. It’s no surprise that the business model is popular among investors. It creates additional revenue for suppliers who otherwise would have wasted this product and saves money for consumers who receive perfectly good produce at a discount.
Want to learn more? Check out our Future of Food View on food waste to learn more about this global epidemic and the initiatives working to rectify it!
