Crowdfunding dedicated to accelerating Food and Drink brands
Grocery Accelerator is delighted to announce the creation of the Grocery Accelerator Fund, a world first investment fund opportunity backed by food and drink investment specialists and crowdfunding experts. It is designed to benefit both small scale investors and exciting new food and drink businesses.
Set to launch within a few weeks, Grocery Accelerator’s new investment fund will be inviting interested parties to join in a revolutionary new way for ambitious businesses to be discovered and allow investors to make a portfolio investment across a rapidly growing food and drink market.
Central to the new fund is the partnership between Grocery Accelerator and Seedrs, who are managing the crowdfunding investment process. Many individual food and drink brands have previously found funding in this way, but new, on this occasion, is the creation of an actual fund where investors are able to make even a modest investment across a portfolio of the next batch of Grocery Accelerators selected high potential businesses.
Grocery Accelerator has substantial success in identifying and selecting new and innovative food and drink brands. Over the last two years, just ten businesses have been selected from over 800 applicants for professional level investment and support from the Grocery Accelerator’s unique business break-through program. Of these ten standout businesses, seven have already won national listings at iconic retailers, supermarkets and high street stores. The remaining three have gone through new product development to be ready for significant growth.
Five of the businesses have also gone on to receive further follow-on investment at least equal or enhanced valuations.
“This is an unbelievably optimistic time for food and drink brands that have a lot of growth potential,” explains Rob Ward, Co Founder & Director Grocery Accelerator. “Many of the national retailers are now fighting over how they can help new food and drink businesses. Our job is to make sure our partner businesses receive the best possible support to make the most of this new development.”
It is not just retailers who have innovation on the agenda. National takeaway delivery service Just Eat has recently launched its own accelerator to invest in new brands. This has been followed by many of the leading household food and drink brands jumping on this trend, including Coke-Cola, Unilever and Diageo.
The international market for food and drink brands is well established, but concentrated amongst relatively few key players. There has been a lack of new products created by these large UK food businesses over the last 20 years. It appears that many of these established food and drink brands have given up with product innovation, and are now turning to the dynamic start-up community to help feed them with new ideas.
Finding the high potential businesses is a core challenge for Grocery Accelerator. As Rob explains, “From the start, our relationship with Fresh Montgomery has been crucial, as with both IFE and Speciality & Fine Food Fair, these blue ribbon trade shows for this market in the UK represents one of the core ways new talent is discovered.”
The opportunities are now there for new and innovative food and drink businesses to get noticed and make a difference. “Our goal is to always make sure we help our partner businesses beat the odds,” Rob elaborates. “We rigorously select the best new ideas that are combined with incredibly capable people. We provide an efficient cost structure for developing their ideas and rapid routes to market. Supported by investment, these businesses could be set for extraordinary potential.”
Seedrs have positioned themselves as the trusted option in the growing crowdfunding market. Founded by lawyers, they focus on ensuring every element of this detailed investment process is correct and thoroughly checked.
Seedrs has recently published its first-ever ‘portfolio update’, reviewed by big four accountancy giant EY, which reviewed the performance of the 253 successful campaigns between its launch in July 2012 and the end of 2015.
Food and beverages has proved to be the best performing sector to date, with a 22.8% non-tax adjusted internal rate of return.
Using the Seedrs crowdfunding system, investing even a modest amount in the new Grocery Accelerator Fund has the potential to be a game changing portfolio investment as well as a simple way to shape the future of an exciting business.
Interested parties, either investors or businesses wishing to be involved and apply for future investment: Click here