Dive Brief:
- Powerplant Ventures, a plant-based food and beverage private equity firm, announced Wednesday it had closed a $42 million fund dedicated to investments in emerging plant-based producers.
- Powerplant Ventures is led by Mark Rampolla, founder of Zico Coconut Water, which sold to Coca-Cola in 2013, along with co-founders Kevin Boylan and T.K. Pillan, co-founders of Veggie Grill, the largest U.S. vegetarian restaurant chain; and Dan Beldy, former managing director of Steamboat Ventures, Disney’s VC unit.
- Powerplant Ventures' current portfolio includes Hampton Creek, REBBL, Thrive Market, Terravia, Hail Merry, Treasure8 and Juicero.
Dive Insight:
Plant-based foods and beverages started as a trend but have become a massive movement throughout the industry, disrupting categories ranging from meat and dairy to snacks and spreads.
Powerplant Ventures may be a dedicated plant-centric fund, but plant-based products have also received financial backing from major companies like General Mills' 301 Inc. (Rhythm Superfoods, Kite Hill). Danone also confirmed the future of plant-based products when it announced its acquisition of WhiteWave Foods, a leading plant-based product manufacturer, last month.
Plant-based products have grown to the point of needing their own lobbying group to protect financial and legal interests for both startups and larger companies. Elizabeth Kucinich, the group's representative in Washington, told The New York Times that the association aims to "level the playing field" and ensure that plant-based food companies also have a voice in food-related policy debates.
Powerplant Ventures' structure allocates portions of its investments across different verticals: 5% for seed investing, mainly in "blue ocean opportunities;" 20% to 25% for "paradigm changers" that disrupt existing categories; and 70% to 75% for "next wave better for you foods" generating $1 million to $10 million in revenue and 30% revenue growth, among other factors, BevNET reported.