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Startup’s Latest Disruption: Food

Cloud storage, social media, e-commerce, and transportation are some of the innovative disruptions of startups in the past few years. The technological advancements combined with smart algorithm provides services that are efficient and user friendly. The latest disruption far extends past hailing sleek black cars with a smartphone app; startups are onto a basic human need: food. Companies such as Plated and Sprig offer on demand freshly cooked meals in about 30 minutes. Both companies which are headquartered in New York and San Francisco use location based technology to deliver their food. U.S. households spend $1.1 trillion annually on food and snacks, according to the U.S. Department of Agriculture. Capturing a “small percent of that number, it’s very, very big,” in terms of revenue, says Jeffrey Lieberman, a New York venture capitalist whose firm invested in HelloFresh GmbH, a meal-kit maker that raised $50 million last month.

While efficient food delivery offers a macro perspective of innovative companies, there are startups looking to disrupt the actual product itself. Soylent, a San Francisco based company claims to contain all the human nutritional requirements with each serving. The pancake batter looking mix was the brainchild of engineer and entrepreneur, Rob Rhinehart. The product has received mix reviews such as cost efficient, taste, and nutritional content. Another San Francisco based startup called Hampton Creek, is taking on the egg industry head on. The company has its own proprietary method of turning crops into liquid proteins that can be cooked just like an egg. It’s also attracted high profile investors from Asia’s richest man Li Ka Shing, Bill Gates, Vinod Khosla, and Yahoo founder Jerry Yang, and Peter Thiel.

“It’s logistics. It’s customer acquisition. It’s customer service,” says John Frankel, a partner in ffVenture Capital and an early investor in Plated. The food industry is past due on innovation and needs a fresh set of eyes to see how technology can help improve the well being of our future. For the latest news in startups and upcoming industries, sign up for our newsletter!

 

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