We know from angel research that returns are positively
correlated with experience. That
makes sense from two perspectives.
One, angels with experience in a field can better recognize a good value
proposition. Two, those angels can
bring their expertise to new companies.
We know a lot about food in the Treasure Valley thanks to
Albertsons, Simplot and Ore-Ida to name a few major producers and sellers. The angels in the Boise Angel Alliance
and its funds thus far have invested in three food companies. Each has taken
advantage of the knowledge of food available in the Treasure Valley.
Nurture. (www.happyfamilybrands.com) Selling
under the Happy Family brand, Nurture produces a line of organic, natural baby
and toddler food. This is an
unusual company in that the CEO lives and works in New York and the COO,
Jessica Rolph lives and works in Boise.
Both officers are mothers of toddlers with an interest in creating
good-for-you food for children.
Under Rolph’s direction the company sources its
raw materials, directs the manufacture of its products and coordinates the
delivery to more than 10,000 stores throughout the United States. Nurture employs more than 25 people in
the Treasure Valley, many of them with prior food experience with some of our
biggest companies.
In June, 2013 Danone, the French yogurt
maker purchased the company. The local angels received approximately eight times their investment, a superb return over four years.
Prosperity Organic
Foods. (www.meltbutteryspread.com) Prosperity
produces a line of organic, natural butter substitutes under their “Melt”
label. Hailey resident, Cygnia
Rapp created the product when dietary restrictions meant she couldn’t eat her
favorite foods (like butter). As
the company grew, Cygnia and her board (I was a board member at the time)
determined that her best role in the company was as the spokesperson and chief
science officer.
Meg Carlson, who was an angel investor in the company and
board member, became the CEO. Meg
had a very successful career as a vice president at Ore-Ida and brought to the
company her in-depth experience in food development, manufacturing, marketing
and distribution. Meg has attracted experienced food industry talent to the
company, both as employees and directors.
The company is now beginning to scale with Melt available in about 3500
stores.
Fit Wrapz. (www.fitwrapz.com) Shige Toyoguchi was a
personal trainer in Boise with an interest in healthy food. He began creating foods for himself and
his clients. This led to a line of
healthy frozen burritos available locally at coffee shops, athletic clubs and
Albertsons.
Fit Wrapz is a seed stage company, now ready to expand
beyond the Treasure Valley. It
recently concluded a seed stage round of financing led by the Boise Angel
Alliance. The capital will be used
to fund the expansion as the company tests different channel strategies.
Shige attracted two very
experienced directors to help guide his company at this critical time. One is a former senior officer with
Simplot; the other was a senior vice president in merchandising for Albertsons.
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