Hermosa Beach-based venture capital outfit PowerPlant Ventures closed a $165 million second fund this month to further its investment in health-focused food service and tech startups.
PowerPlant had aimed for a $100 million fund but exceeded its target thanks to what co-founder Mark Rampolla called “the early innings of a major food revolution.”
In a statement, Rampolla said, “Upstart insurgent brands are responding to changing consumer demands at a much faster pace than the major incumbents.” He added that newcomers are grabbing large shares of the market for healthy food and grocery offerings.
One of the upstart brands PowerPlant backs is Marina del Rey-based online grocery shopping platform Thrive Market Inc. The company also backs Beyond Meat Inc., the El Segundo-based maker of meat substitutes. Beyond Meat served up large returns on PowerPlant’s investment when it closed a May initial public offering worth roughly $241 million.
The company has already used part of its new fund to invest in two new companies, Berlin-based food powder mix producer Your Superfoods and Venice-based organic beverage retailer Wellness Shots Co. Inc., doing business as Vive Organic.
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