Category Archives: slow ventures

Postmates lines up another $100M ahead of IPO

Postmates, one of the earlier entrants to the billion-dollar food delivery wars, has raised an additional $100 million in equity funding at a $1.85 billion valuation, as first reported by Recode and confirmed to TechCrunch by Postmates. The round comes four months after the eight-year-old startup drove home a $300 million investment that finally knocked it into “unicorn” territory.

New investor BlackRock has joined the funding round alongside Tiger Global, which served as the lead investor of Postmates’ September financing. Led by co-founder and chief executive officer Bastian Lehmann, the company has garnered a total of $681 million in venture capital funding from investors, including Spark Capital, Founders Fund, Uncork Capital and Slow Ventures.

In line with several other tech unicorns, Postmates has begun prep for an initial public offering that could come this year, including tapping JPMorgan to advise the float. As Recode pointed out, the $100 million capital infusion was probably less of a necessary funding event but rather an opportunity for existing investors to liquidate stock ahead of an exit.

Postmates, which completes 3.5 million deliveries per month, reportedly expected to record $400 million in revenue in 2018 on food sales of $1.2 billion. The company has not confirmed that figure nor disclosed any other 2018 revenue numbers. The company currently operates in more than 500 cities, recently tacking on another 100 markets to reach an additional 50 million customers.

It will be interesting to see how Wall Street responds to a Postmates public listing. Though it was an early player in what has become an extremely crowded market, Postmates never emerged as the leader in food delivery. Now, with supergiants like Uber dominating via Uber Eats and SoftBank funneling loads of capital into Postmates competitor DoorDash, it shouldn’t count on an oversubscribed IPO.

Crowd Cow, offering ranch to table meats, picks up $8 million from Madrona, Ashton Kutcher

Most high-end restaurants don’t get their beef from the local grocery store. Well-regarded chefs and restauranteurs build relationships with small farms and family ranchers to procure what’s known in the industry as craft beef.

Just like coffee or chocolate or wine, the smallest differences (type of grass, breed of cow, lifestyle, etc.) can make a big difference in overall taste. But you and I have never had easy access to this beef outside of hitting up a Michelin-star restaurant.

And then Crowd Cow came along.

Crowd Cow, based in Seattle, works with small family farms to let users choose their cow and their cut. Crowd Cow then ships this craft beef directly to a user’s home.

Before Crowd Cow, five or six families would have to go in together on more than 500 LBs of beef in order to be a compelling customer to these small farms. That means they need a large meat freezer, upfront cash, and all the time and resources necessary to get the product from the farm to the home.

Crowd Cow founders Joe Heitzeberg and Ethan Lowry realized the whole process would be much better for everyone if they could crowdsource 50 families, instead of four or five, to buy a cow. The company handles logistics and offers users a way to learn about the ranch, the cow, and more via the app.

Today, the company is announcing that it has closed an $8 million Series A funding led by Madrona Venture Group, with participation from Ashton Kutcher of Sound Ventures and existing investor Joe Montana of Liquid 2 Ventures.

Since launch, Seattle-based Crowd Cow has expanded to offer chicken, olive wagyu, and pork and now serves the entire contiguous United States. The company generates more than $1 million in revenue a month and revenue has grown 10x over the last year.

The greater vision is to de-commoditize beef.

The Seattle-based company isn’t the only startup to raise money in an attempt to get people to eat better beef. Earlier this month, Porter Road closed on $3.7 million to go after the market with a similar mission.

Backed by a slew of New York venture firms including Slow Ventures, Max Ventures, BoxGroup, Tribeca Venture Partners and the Collaborative Fund, Porter Road was founded by trained chefs and butchers Chris Carter and James Peisker. Originally working out of a butcher shop in Nashville, Tenn. since 2011, the two partners work with sustainable local farmers to source the best meat.

Both companies are putting a new spin on a model made famous by Omaha Steaks, the meat packer and mail order distributor founded over 100 years ago, which is now pulls in $450 million in revenue a year.

“Before Starbucks and microbrew, coffee was 50 cents and there were a handful of beers and no one really cared,” said Crow Cow’s Heitzeberg. “The reality is that beef is varied. There are 300 breeds, and there are different types of grass in these pastures, and these factors will lead to a very different taste. Beef doesn’t have to be a commodity.”

Crowd Cow plans to use the funding to continue expansion into different proteins and new markets, as well as opening new distribution centers to speed up delivery to customers.

 

Crowd Cow, offering ranch to table meats, picks up $8 million from Madrona, Ashton Kutcher

Most high-end restaurants don’t get their beef from the local grocery store. Well-regarded chefs and restauranteurs build relationships with small farms and family ranchers to procure what’s known in the industry as craft beef.

Just like coffee or chocolate or wine, the smallest differences (type of grass, breed of cow, lifestyle, etc.) can make a big difference in overall taste. But you and I have never had easy access to this beef outside of hitting up a Michelin-star restaurant.

And then Crowd Cow came along.

Crowd Cow, based in Seattle, works with small family farms to let users choose their cow and their cut. Crowd Cow then ships this craft beef directly to a user’s home.

Before Crowd Cow, five or six families would have to go in together on more than 500 LBs of beef in order to be a compelling customer to these small farms. That means they need a large meat freezer, upfront cash, and all the time and resources necessary to get the product from the farm to the home.

Crowd Cow founders Joe Heitzeberg and Ethan Lowry realized the whole process would be much better for everyone if they could crowdsource 50 families, instead of four or five, to buy a cow. The company handles logistics and offers users a way to learn about the ranch, the cow, and more via the app.

Today, the company is announcing that it has closed an $8 million Series A funding led by Madrona Venture Group, with participation from Ashton Kutcher of Sound Ventures and existing investor Joe Montana of Liquid 2 Ventures.

Since launch, Seattle-based Crowd Cow has expanded to offer chicken, olive wagyu, and pork and now serves the entire contiguous United States. The company generates more than $1 million in revenue a month and revenue has grown 10x over the last year.

The greater vision is to de-commoditize beef.

The Seattle-based company isn’t the only startup to raise money in an attempt to get people to eat better beef. Earlier this month, Porter Road closed on $3.7 million to go after the market with a similar mission.

Backed by a slew of New York venture firms including Slow Ventures, Max Ventures, BoxGroup, Tribeca Venture Partners and the Collaborative Fund, Porter Road was founded by trained chefs and butchers Chris Carter and James Peisker. Originally working out of a butcher shop in Nashville, Tenn. since 2011, the two partners work with sustainable local farmers to source the best meat.

Both companies are putting a new spin on a model made famous by Omaha Steaks, the meat packer and mail order distributor founded over 100 years ago, which is now pulls in $450 million in revenue a year.

“Before Starbucks and microbrew, coffee was 50 cents and there were a handful of beers and no one really cared,” said Crow Cow’s Heitzeberg. “The reality is that beef is varied. There are 300 breeds, and there are different types of grass in these pastures, and these factors will lead to a very different taste. Beef doesn’t have to be a commodity.”

Crowd Cow plans to use the funding to continue expansion into different proteins and new markets, as well as opening new distribution centers to speed up delivery to customers.

 

Hackaday Acquires DIY Hardware Marketplace Tindie

tindie Tindie, the marketplace for makers to fund and sell their hardware creations, is being acquired by maker blog Hackaday.
Headquartered in San Francisco, Tindie has previously raised $1.7 million in seed funding from Andreessen Horowitz and Slow Ventures, among others.
Hackaday, a popular blog that features DIY technology projects, was acquired in 2013 by SupplyFrame, which is an advertising… Read More

Dave Morin And Kevin Colleran’s Slow Ventures Raises A New $65 Million Fund

kevincollerandavemorin Slow Ventures, a fund run by early Facebook employees Dave Morin and Kevin Colleran, has raised a new $65 million fourth fund. Sam Lessin, another former Facebook employee who left in August last year, will also be joining as a partner. The fund has made investments in many of the closest-watched startups in Silicon  Valley, including Pinterest, Meerkat, Postmates, Airbnb and… Read More

Y Combinator-Backed PicnicHealth Nabs $2 Million In Seed To Build Out A Virtual Healthcare Records Platform

6918365393_123a708796_b PicnicHealth launched out of Y Combinator last summer with a service that promised to help chronically ill patients gather all their records from all their doctors and put it in one easy-to-access online profile. The startup has now raised $2 million in seed funding to build that service out and hire more team members.
The funding comes from a slew of VC firms and angel investors, including… Read More

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