Supply Change Capital, an ambitious new player in the venture capital field, has reportedly secured a whopping $40 million for its debut fund. As a firm led by women and driven by a vision for sustainable food technologies, Supply Change Capital is a testament to the growing influence of women in VC.
Who Are They?
This trailblazing firm is led by Noramay Cadena and Shayna Harris, two experienced professionals who first met during their business school years. Cadena, a former aerospace engineer, has a strong investment track record in manufacturing and supply chain companies. Harris, on the other hand, boasts an impressive portfolio as the former COO of Farmer’s Fridge and a sustainability advocate at Mars.
What Are They Doing?
The new fund intends to invest in the global food industry, valued at $10 trillion. Their focus is primarily on technology and consumer companies, with an investment split of 75% and 25% respectively.
The duo believes that their unique blend of investment areas will allow them to better understand and address the challenges faced by their portfolio companies. They argue that being able to appreciate both the technological and consumer aspects of the industry enables them to offer more insightful and effective support.
| Investment Area | Percentage |
|---|---|
| Technology | 75% |
| Consumer | 25% |
Who’s Backing Them?
Supply Change Capital’s limited partners list reads like a who’s who of the financial world. It includes:
- 301 INC, the venture capital arm of General Mills
- MassMutual’s First Fund Initiative
- The Office of the Illinois Treasurer through the Illinois Growth and Innovation Fund
- Illumen Capital’s Catalyst Fund
- J.P. Morgan Asset Management
What’s Their Track Record?
Since June 2021, Cadena and Harris have been actively investing their funds. To date, they have already invested approximately $13 million across 15 startups. Notably, 80% of their portfolio consists of companies helmed by Latinx, Black, or female founders and CEOs.
Some of their investments include:
- Partake Foods, an allergen-free snack food company
- Michroma, an ingredients startup
- Aqua Cultured Foods, a maker of alternative seafood
Women in VC: A Growing Trend
Supply Change Capital’s impressive debut is part of a larger trend. Women are making their mark on the VC landscape with several notable funds being raised by women-led firms this year. Some of the notable ones include:
- Adverb Ventures by Jessica Verrilli and April Underwood, with $75 million
- Joyful Ventures by Jennifer Stojkovic, with $23 million
- Public Ventures by Zoey Dash McKenzie, targeting $100 million
- Oversubscribed Ventures by Erin and Sara Foster, targeting $20 million
- Phenomenal Ventures by Meena Harris and Helen Min, debuted with $6 million
- Emblem by Bénédicte de Raphélis Soissan, which raised nearly $54 million
Example Ideas
Here are some types of companies they might be interested in, given their focus. Sustainable food technology companies are those that seek to improve the efficiency and sustainability of the food system. This could include:
- Alternative protein companies, such as those developing plant-based or lab-grown meats.
- Precision agriculture companies, which use technology to optimize crop yields and reduce waste.
- Food waste reduction technologies, which could include everything from apps that help consumers reduce waste to technologies for businesses to better manage their food inventories.
- Supply chain innovations, such as blockchain technologies for tracking the origin and quality of food products, or AI-driven logistics solutions for optimizing food transport and reducing carbon emissions.
Each of these types of companies could potentially align with Supply Change Capital’s focus on technology, consumer companies, and securing the future food supply.
The Bottom Line
Supply Change Capital is not just a new entrant in the VC space. It symbolizes the increasing influence of women in the industry and the potential for more diverse and inclusive investment practices. With their hands-on approach to investing and a clear focus on sustainable food technologies, they are set to make a significant impact in the years ahead.
Original article: https://techcrunch.com/2023/07/24/supply-change-capital-vc-fund-foodtech/
