Chicago-based S2G Ventures has closed its second fund at $180 million to invest in all things food, CNBC has learned.
The firm raised its fund during a year of high-highs and profound flameouts among food start-ups. Just last week, Nestle took a majority stake in Blue Bottle in a deal reportedly valued at $700 million. By contrast, last month Juicero shut downafter raising over $100 million in venture funding.
S2G Ventures managing director and founder Chuck Templeton, who earlier founded OpenTable, told CNBC, "Sophisticated investors are not phased by these events...Consumers are changing the food system, whether the bigs want it or not. So there are and will continue to be big opportunities to make great impact and financial returns."
For example, organic food sales have outpaced overall food sales since the late 90's, he noted, growing around 15% annually versus just 3% for all food. In 1997, the organic food market in the U.S. represented some $3.4 billion in annual sales. That ballooned to $43 billion in 2016.