Startups Can Still Raise Capital Even If It’s For A Good Cause
As the venture capital market continues to navigate a slowdown in funding activity, many predicted that investors would retreat to safer bets – such as SaaS companies founded by individuals within their network. However, this has not been the case for mission-driven startups.
Everytable Secures $25 Million Series C-2 Round
One notable example is Everytable, a food tech startup with a mission to make healthy prepared food accessible and affordable to all. The company’s recent announcement of a $25 million Series C-2 round led by Dohmen Impact Investment Fund has sparked interest in the industry.
A Different Approach to Pricing and Distribution
Everytable takes a unique approach to pricing its menu, taking into account the location of each individual store. This allows the company to offer healthy food at prices comparable to fast-food chains. The startup also distributes its products through various channels, including branded vending machines and delivery.
Investor Appetite for Mission-Driven Startups Remains Strong
The investment in Everytable’s Series C-2 round is a testament to the continued investor appetite for mission-driven startups. This deal shows that even in a tougher market, investors are still willing to back companies that prioritize social change alongside financial returns.
Diversified Investor Base
Everytable has not exclusively raised funds from mission-focused investors. The company also received $55 million last August from New York-based seed fund Lerer Hippeau, multiple corporate VCs, and angels. This diversification of its investor base highlights the growing interest in impact-driven startups.
Growth Amid Economic Conditions
Everytable’s growth is particularly noteworthy given the current economic conditions. Despite a slowdown in funding activity, the company has been able to expand its retail footprint and triple the number of stores it had in 2022. This achievement is all the more impressive considering that many late-stage startups are struggling to secure funding.
PitchBook Data Reveals Decline in Late-Stage Deals
According to PitchBook data, there were only 1,930 late-stage deals in the U.S. in the first half of 2023. This represents a decline from previous years and suggests that the current funding environment may not be conducive to growth for many startups.
A Positive Sign for Mission-Driven Startups
Despite these challenges, Everytable’s success is a positive sign for mission-driven startups. The company’s ability to secure two late-stage rounds in a tough market demonstrates that investors are still willing to support companies that prioritize social impact alongside financial returns.
"The Mission or Impact You Want to Make in the World Should Always Be Your North Star…"
Everytable’s CEO, Rebecca Szkutak, emphasized the importance of prioritizing mission and impact when building a startup. "The mission or impact you want to make in the world should always be your North Star," she wrote. "But your strategic plan should be a roadmap to sustainable growth and profitability."
Conclusion
The investment in Everytable’s Series C-2 round is a testament to the continued investor appetite for mission-driven startups. Despite a slowdown in funding activity, companies like Everytable are showing that it’s possible to balance social impact with financial returns. As the venture capital market continues to evolve, one thing is clear: mission-driven startups will remain an attractive opportunity for investors.
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