Starting a food business is one the most exciting endeavors a human being can embark on.
Food is such an intimate and subjective thing that the thought of creating a product that everyone will like and appreciate is daunting for many. On the other hand technology has significantly lowered the barriers to entering this industry and these days food entrepreneurs are reshaping what we’ll eat in the foreseeable future. Plant-based burgers, high-protein content algae and even insects are some of the new products that have started hitting our tables.
While this is all very exciting, access to capital for these companies is somewhat limited and the reason is pretty simple. It’s hard for investors or anyone interested in financing such business to understand the dynamics of these enterprises, unless they have been exposed to this industry before.
Although investing in food is becoming increasingly popular and investors are more willing to contribute to this growing sphere, there is still a wide knowledge gap among financiers who are investing in food businesses. It’s important to highlight that besides access to capital most early-stage food startups require lots of connections within the industry for them to thrive. Engaging early on with thought leaders allows founders to deeply grasp food market dynamics and helps steer them in the right direction with the development of their ventures.
With Crowdfooding we want to bridge this knowledge gap by connecting food and beverage entrepreneurs with the most relevant investors. We believe London is the perfect place to begin our mission of broadening access to capital for culinary entrepreneurs by combining its vibrant food scene with today’s new financial technologies.
Please bear in mind that although there are many benefits associated with investing in food and beverage start-ups, there are also a number of risks including illiquidity (the inability to sell assets quickly or without substantial loss in value), lack of dividends, loss of investment and dilution, and it should be done only as part of a diversified portfolio. Your capital is at risk if you invest.