Colorado Springs Startup Has Grand Plans for the Future of Food
FoodMaven is working on artificially intelligent machine systems that will help with supply chain, pricing and more
FOUNDED: 2015 | HQ: COLORADO SPRINGS
Colorado Springs-based FoodMaven, a produce and packaged food reseller, has gained traction with a business model that tackles waste in the American food service system, successfully embodying conscious capitalism with a for-profit operation that balances generating returns and a positive impact.
FoodMaven intercepts lost food products – typically rejected by grocers or distributors because of oversupply or a lack of aesthetic appeal – and sells them at steep discounts to buyers including schools, hospitals and restaurants. Unsold food is donated to food banks, farms and composting operations.
Since growing its operation from Colorado Springs to Denver, the company forecasts collective local sales of $8 million this year; the goal is to grow to 100 cities within the next five years. This January, FoodMaven announced an $8.6 million Series A round it secured, and plans to put the funds toward infrastructure, new hires and technology development, including artificially intelligent machine systems that will help with supply chain, pricing and other logistical functions.
Looking forward, FoodMaven plans to acquire a Denver-area food distributor this summer. CEO Patrick Bultema says the company is poised to secure a series B round of fundraising between the end of 2018 and beginning of 2019, looking for $40 million to $50 million. FoodMaven will also expand into new markets before year’s end, with nods to Phoenix, Dallas and Seattle, but no official word yet.