While food tech investment might have seen a decline alongside overall venture capital activity, Bluestein Ventures remains undeterred. The Chicago-based early-stage venture capital firm has successfully closed on $45 million in capital commitments for its Fund III.
Founded by Andrew Bluestein in 2014, Bluestein Ventures has seen continued growth, bolstered by the addition of Ashley Hartman as co-managing partner eight years ago. Their latest fundraising success follows in the footsteps of other venture capital firms such as Kost Capital, Supply Change Capital, and Joyful Ventures, all of which have recently secured new funds to invest in food tech.
Bluestein Ventures focuses its investments on companies at the pre-seed to Series A stages, boasting a portfolio of over 50 companies. Their investment strategy centers on consumer-facing technology across the food supply chain, encompassing areas such as health and wellness, proprietary foodtech, commerce, and digital technology.
Among their notable investments are Factor75, a prepared meal delivery service acquired by HelloFresh in 2020; Foxtrot, a network of tech-enabled corner stores; FourKites, a developer of freight visibility software; and Meati, a producer of mycelium-based alternative proteins. Additionally, Bluestein Ventures was an early supporter of New Culture, a company pioneering animal-free cheese products.
The first two funds of Bluestein Ventures were primarily backed by the Bluestein Family, which notably includes Ilene Gordon, former chairman and CEO of ingredient company Ingredion, and Bram Bluestein, serving as a firm advisor.
In a significant shift, the third fund marks the inclusion of external investors for the first time. This diverse group encompasses strategics, additional family offices, as well as executives and entrepreneurs from the food sector. Alongside the family office, this expanded investor base signifies a broader recognition of Bluestein Ventures’ potential.
With the launch of Fund III, Bluestein and Hartman are joined by Lindsay Levin, formerly the chief marketing officer at RXBAR, who assumes the role of venture partner.
Reflecting on the evolution of their investment focus, Bluestein remarked, “When we started Bluestein Ventures, people would ask us why we were investing in food. Now that we’ve seen a lot of the trends around consumers changing their consumption habits or the focus more on health and wellness, it’s a much easier conversation to have.”
The firm aims to deploy Fund III across 20 to 25 companies, with initial investments already made in promising ventures. These include BiomeSense, offering an end-to-end platform for scaling gut microbiome research and testing; WECO Hospitality, providing chef-quality prepared meal delivery services; and Attane Health, a marketplace offering food prescriptions tailored for individuals with chronic conditions.