Startups Can Still Raise Capital Even If It's for a Good Cause Despite Market Challenges

In a year marked by a slowdown in venture funding, many have feared that investors would retreat to their comfort zone: backing SaaS companies founded by those within their network. However, this has not been the case for mission-driven startups like Everytable.

Table of Contents

Everytable’s Recent Fundraising Success

On June 27, the Los Angeles-based food tech startup announced a $25 million Series C-2 round led by Dohmen Impact Investment Fund. This funding will be used to expand the company’s retail footprint, with plans to open up to 25 new stores in the latter half of 2023.

Why Everytable Stands Out

This deal is notable for several reasons. Firstly, it shows that there is still investor appetite for startups looking to deliver more than just profits. Everytable’s commitment to keeping healthy food affordable may make it harder for them to scale, but investors are still backing the company.

Investor Appetite for Mission-Driven Startups

While some might view this as an anomaly in a tough market, the reality is that there is still significant interest in mission-driven startups. Everytable has received funding from a variety of impact-focused investors, including:

Gullspång Re:food, a Swedish organization backing founders trying to solve the food industry’s structural issues
The Libra Foundation, which invests in companies focused on helping communities of color flourish
Gratitude Railroad, an investor group that backs companies solving environmental and social problems

Growing Interest in Impact Investing

The number of investors looking to back mission-driven startups is growing. Public Ventures, a new impact-focused investor, recently announced that it is targeting $100 million for its debut fund.

Founder Sam Polk’s Perspective

According to Everytable founder and CEO Sam Polk, there has been significantly more investor interest in mission-driven startups in recent years compared to when he started the company seven years ago. "While the climate has shifted from funding ‘growth at all costs’ to more sustainable growth, investors (just like consumers) continue to seek out companies that align with their values," Polk wrote.

Impact-Driven Growth

Everytable’s ability to grow despite current economic conditions is a testament to the potential of impact-driven startups. The company has been able to expand its retail footprint and triple the number of stores it had in 2022.

Late-Stage Deals Slowing Down

According to new data from PitchBook, there was a slowdown in late-stage deal activity in 2023. However, this does not necessarily mean that mission-driven startups are at a disadvantage.

"Your mission or impact you want to make in the world should always be your North Star, but your strategic plan should be a roadmap to sustainable growth and profitability," Polk wrote.

Conclusion

Everytable’s recent fundraising success is a reminder that there is still significant interest in mission-driven startups. As investors continue to prioritize sustainability and social impact, companies like Everytable are well-positioned to succeed in this new landscape.

Related Topics