Food-X: An Accelerator To Grow The Food Movement
J Thoendell stashed this in Food
Food-X isn’t the only one looking for solutions by incubating food companies. Chobani, the New York-based Greek yogurt maker, recently announced a six-month incubator program to invest in emerging entrepreneurs who are working with all natural ingredients, are affordable and nutritious. Another player, although with a much different framework, is the Good Food Business Accelerator, (GFBA) funded by Family Farmed, a Chicago-based non-profit, which seeks to help participating companies work on their business plans, customer development strategies, and market development. In return, GFBA takes an annual fee–but no equity–based on each startup’s increase in profits. If there is no profit, then no fee is collected.
Funded with $50 million dollars from an Evergreen fund, Food-X’s plans to seed upwards of 200 companies over the next 10 years, which, the team hopes, will make valuable changes to the global food industry. The accelerator is taking the long view, with plans to give the startups plenty of runway to make their companies successful. This means the founders won’t be pressured to exit, sell or even make a profit for the foreseeable future. The exact terms are different for each company, but many in the first class gave a 7.5 percent stake in equity in exchange for an investment of $40,000.