Bias & Blind Spots | Healthy food and access for all
Bias & Blind Spots sources and operates direct-investments in early-stage F&B brands on behalf of wealthy individuals and Family Offices. As such, we promote a structure that invests long-term, patient capital with the early-growth companies – aligning founders, investment managers and investors towards profitable businesses that don't necessitate a quick exit.
food & beverage investor, venture capital, VC, private equity, PE, family office investors, multi family office investors, minority investments, majority investments, CircleUp, healthy food, healthy beverage,
Our biases were forged from decades as investors, founders and operators in early-growth food & beverage brands. By avoiding a me-too mindset we’re free to operate in others’ blind spots.
with Managing Partner Douglas Raggio
What’s the point?
To provide early founder liquidity and hold all parties accountable in a long-term food & beverage endeavor. We believe it’s vital to have a diversity of investment models in any economic environment.
Are you a VC?
No. It’s our firm belief that short-term, exit driven investing in F&B is a poor substitute for profitable businesses.
How do you align interests and bring value?
Our partners invest alongside investors and take operational roles with each company. We remove the spoils of management fees and promote accountability between founders, investment managers and investors.
What’s your exit strategy?
We focus on profitable growth and an indefinite holding period. Future exit environments are murky at best as a result of new capital flooding the market, irrational pricing and major CPG investing at earlier stages.
What’s your track record?
Our debut fund anticipates profitability starting early 2018. So it’s too early to tell. True impact will be measured in decades when we have profitable, independently owned F&B brands that displace poor offerings at all levels of retail.
This seems a bit evangelical…
We are. Informed investing comes from historical insights and passive investments in F&B are insufficient. Driving topline growth at the expense of profitability, the need for outsize returns of the few at the expense of the many and forced exits is not a sustainable model for investing in F&B.
What deal structure do you prefer?
Where others experience failures of imagination, we created a structure that aligns and holds all accountable for the longevity of the brands while simultaneously eliminating manufactured timelines and financial wizardry.
Why only food & beverage?
We hold the strong belief that focus and discipline are the keys to sound investing. Our knowledge is in the packaged/branding F&B space, so that’s what we stick to.
What is your average investment size?
We’re comfortable with deals in the $2M-$5M range, but that’s not absolute. We’ve looked at smaller and larger check sizes as well.
KEY INVESTMENT CRITERIA
Premium status of product
Authentic teams, with strong ties to community
Revenue between $1M-$10M
Competitive advantages in distribution channels
History of attractive growth rates (>200%/year), and margins (>40%)
Undercurrent of market enthusiasm linked to industry sector attractiveness
Retail performance; quantitative and qualitative data from retail buyers
Supply chain mapping and feasibility
Validation of local/organic/natural claims, defensibility of health/functional benefits
Competitive market assessment
Interviews by industry veterans
References throughout product supply chain
Product/market fit analysis
Trend matching analysis
By simply making ourselves available to founders and paying attention to the early-growth F&B space, we’ve accumulated a wealth of news, data and insights over the past decade. To completely understand our method of thinking, we welcome you to peruse the same information we’re reading and form your own opinion. Enjoy.
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If you’ve read this far, we will assume you’re interested in what we’re up to. Bias & Blind Spots challenges the status quo and provides an investment vehicle that aligns interests, holds all parties accountable and drives economic development – all through early-growth food and beverages. We’re quite proud and excited for the future ahead.
Please don’t hesitate to reach out with questions or comments and we’ll get back to you as soon as we can.
For investor opportunities and general inquiries, contact us at firstname.lastname@example.org.