The Signal: Since the start of the pandemic in the US, we have been tracking startup funding data. Based on Dan Primack’s indispensable Pro Rata newsletter, our latest analysis looks at 270 venture deals closed in July 2020.
Over this period, the industries that received the most funding were health tech (16%), biotech (12%), fintech (9%), food (7%), transportation (6%), cybersecurity (6%), enterprise SaaS (5%), and ecommerce (4%).
The Opportunity: As it has been since the start of the pandemic, the industries receiving the most funding have been health tech, biotech, and fintech.
For this analysis, we’ll focus on 10 companies that were funded across 2 other notable themes: food and real estate.
Food
While the alternative meat space has been trending for the past few years (we covered it last summer), funding in July stood out, compared to the rest of the pandemic period:
- Nuggs (funding amount = $4.1m): The pea-based protein startup currently sells the “Tesla of chicken nuggets” online (it also has a hysterical pricing page). Among its investors is the Canadian frozen food leader McCain Foods. According to Nuggs, its product actually has more protein and less calories than traditional (and non-Tesla-like) nuggets.
- Outstanding Foods ($5m): Another plant-based protein business that knows how to internet meme. The product is described as “hella tasty protein-packed pork rinds… without the pig.” Flavor offerings include Original, Hella Hot, Nacho Cheese, and Texas BBQ. Sold online in boxes of 12 (~$24) or 24 (~$48).
- The Not Company ($85m): Based in Chile, this startup is using plant-based proteins to make alternative meat and dairy products. The flagship products are Not Mayo, Not IceCream, and Not Milk (you can probably guess what these items are) -- and also a burger (in partnership with Burger King). Selling primarily in Chile, Argentina, and Brazil.
- Joywell Foods ($6.9m): A food tech startup that creates sweeteners from natural proteins derived from exotic fruits. The sweetness comes without any sugar. The company’s CEO, Karen Huh, is a consumer goods veteran, and spent 15 years with Bulletproof 360 and Starbucks.
- New Age Meats ($2m): This company creates meat from animal cells. Its flagship product is a lab-grown sausage (honestly, it looks kind of good).
- Geltor ($91.3m): Geltor is a bit different than the above companies. Instead of rolling out a line of alt-meat products, the startup offers “animal-free-ingredients-as-a-service.” The company uses collagen protein and helps other companies conceptualize, prototype, and commercialize cosmetics and F&B products.
Real Estate
RCA (a real estate analytics firm) recently reported that the number of residential and commercial real estate deals completed in Q2 was down 68%+ year-on-year (YoY). In the same article, an RCA executive says, “Sellers aren’t being forced to the market because there’s no realized distress, and buyers are sitting on the sidelines thinking there’s going to be distress.”
Against this backdrop, a number of interesting real estate startup deals have arisen:
- Sundae ($16.6m): While Sundae is an online marketplace for distressed residential real estate, its messaging is very lighthearted. The startup takes the pain out of selling distressed real estate by making an offer (based on a no-fee form submission) without requiring any cleanups or repairs on the property. Sundae also provides a $10k cash advance while waiting for the deal to close (10-60 days).
- Orbital Witness (£3.3m): Based in the UK, this startup helps lawyers by providing an intelligent platform that creates risk reports based on automated analysis of legal and property data.
- JetClosing ($9m): A startup that offers digital real estate title and escrow services to (securely) streamline the home closing process. Currently operates in 7 states: Arizona, Colorado, Florida, Nevada, Texas, and Washington.
- Acquicore ($14m) and Cohesion($6.5m): Two platforms that allow for building management and tenant experience.
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