Food tech investment may have declined along with overall venture capital, but Bluestein Ventures is not letting that slow it down. The Chicago-based early-stage venture capital firm closed on $45 million in capital commitments for its Fund III.
Key Takeaway
Bluestein Ventures has secured $45 million for its Fund III, focusing on consumer-facing technology across the food supply chain, health and wellness, proprietary foodtech, commerce, and digital technology.
Background of Bluestein Ventures
Andrew Bluestein, co-managing partner of Bluestein Ventures, founded the firm in 2014 and brought on Ashley Hartman, also co-managing partner, eight years ago. They join other venture capital firms, like Kost Capital, Supply Change Capital, and Joyful Ventures, that have recently raised new funds to invest in food tech.
Investment Focus and Portfolio
Bluestein Ventures invests at pre-seed to Series A and has amassed a portfolio of over 50 companies, targeting consumer-facing technology across the food supply chain like health and wellness, proprietary foodtech, commerce, and digital technology. Previous investments include Factor75, Foxtrot, FourKites, and Meati, among others.
Expansion and New Investors
The first two funds were anchored by the Bluestein Family, which includes Ilene Gordon, former chairman and CEO of ingredient company Ingredion, and Bram Bluestein, a firm advisor. In addition to the family office, the third fund is the first to include a group of external investors, including strategics, additional family offices, executives, and entrepreneurs from the food sector.
Strategic Vision and Future Investments
Bluestein Ventures believes the sector is at major inflection points that will accelerate innovation in the next few years, especially as more consumers prioritize their health and wellness. The firm intends to deploy Fund III into between 20 and 25 companies, with an emphasis on nutrition, sustainability, and digitization.
Technological Advancements and Regulatory Landscape
Technologies like artificial intelligence, machine learning, and synthetic biology fermentation, along with the U.S. Food and Drug Administration’s approval of new ingredients and devices, are expected to drive innovation in the food tech sector.
Investors are optimistic about the potential of food tech companies perfecting precision fermentation, and Bluestein Ventures is poised to play a significant role in this evolving landscape.
