Venture Capitalists Are Making Bigger Bets on Food Start-Ups

By JENNA WORTHAM and CLAIRE CAIN MILLER

April 28, 2013

What if the next big thing in tech does not arrive on your smartphone or in the cloud? What if it lands on your plate?

Workers in the Plated warehouse in Brooklyn. The founders spent $15,000 on a warehouse in Queens that proved unsuitable.

That idea is enticing a wide group of venture capitalists in Silicon Valley into making big bets on food.

In some cases, the goal is to connect restaurants with food purveyors, or to create on-demand delivery services from local farms, or ready-to-cook dinner kits. In others, the goal is to invent new foods, like creating cheese, meat and egg substitutes from plants. Since this is Silicon Valley money, though, the ultimate goal is often nothing short of grand: transforming the food industry.

“Part of the reason you’re seeing all these V.C.’s get interested in this is the food industry is not only is it massive, but like the energy industry, it is terribly broken in terms of its impact on the environment, health, animals,” said Josh Tetrick, founder and chief executive of Hampton Creek Foods, a start-up making egg alternatives.

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http://www.nytimes.com/2013/04/29/business/venture-capitalists-are-making-bigger-bets-on-food-start-ups.html?pagewanted=all&_r=0