Drink It Up: VCs Eating into Health Foods & Bevs Space
July 25, 2013
People these days seem to be getting more and more health conscious. Aside from exercise, there is an increasing interest in eating right and drinking liquids that are actually good for you (as opposed to sugar-loaded beverages). Companies are catering to these interests—making foods and snacks with healthier ingredients, beverages more nutritional and health-beneficial, and vitamins and supplements that promote a healthier lifestyle. VC investors seem to be on board with the trend, and there has been a healthy amount of activity in the space in recent years.
Since the beginning of 2004, VC investors have completed 81 U.S.-based deals in the health foods & beverages industry, according to the PitchBook Platform. Those deals totaled nearly $428 million in capital invested. During that time frame, 2007 was the high mark in terms of capital invested in the space in a single year ($109 million), while 2012 was the high mark in terms of number of deals completed in a single year (18).
Capital invested in the health foods & beverages industry so far this year ($57.4 million) has already nearly equaled the second highest mark since 2004 ($59.2 million in 2010). That includes two financings completed just this week—Bare Fruit’s $9.25 million round and NatureBox’s $8.5 million round.