- Startup Back to the Roots has secured $5 million in a strategic seed financing round, including leading investments from Tony Robbins' and Peter Guber's startup accelerator, Agency of Trillions, and other new angel investors. The round will remain open for another 30 days.
- Crowdsourced investing platform CircleUp facilitated $3 million of the $5 million round.
- Back to the Roots has developed products ranging from organic mushrooms urban farmed with recycled coffee grounds to 100% stoneground breakfast cereals. The company plans to use the funding for 10 new products slated for this year, and to expand distribution and staff at its Oakland, CA headquarters.
Back to the Roots is poised for success with an influx of capital and established distribution to schools and major retailers like Whole Foods, Target, Kroger, and Amazon. Still, food and beverage startups face an increasingly crowded and competitive industry.
Golazo, maker of soccer-themed energy and sports drinks, recently announced it would shut down production after a successful early run due to an inability to become profitable or raise enough capital, though it had secured investments along the way.
Food and beverage industry-focused investment groups have popped up to help fast-growing startups solve their capital problems, including General Mills' 301 Inc., Edible Ventures, and CAVU Venture Partners. Startup acclerators, like Agency of Trillions and Food-X, have taken the role of guiding startups through the ins and outs of succeeding in the business. And major manufacturers have acquired startups to provide the capital and relationships required for success.