DeepSummary
Andrew Bluestein and Ashley Hartman, managing partners of Bluestein Ventures, were interviewed for this podcast episode. Bluestein Ventures is a venture capital firm that invests in the future of food, focusing on high-growth consumer brands, proprietary food tech, next-gen commerce, and value-add digital technology. They transitioned from being a family office to raising outside capital for their third fund of $45 million.
The episode delves into their investment strategy, including their focus on finding businesses that hit the triumvirate of taste, price, and nutrient density, particularly in plant-based meat. They discuss the challenges faced by their portfolio company Foxtrot, a modern convenience store concept, and the potential for retail concepts to achieve venture-scale returns if executed well.
The conversation also covers channel strategy for food brands, with a focus on balancing online and retail presence. Ashley and Andrew emphasize the importance of cash efficiency, building strong unit economics, and taking a long-term view for success, regardless of the business model.
Key Episodes Takeaways
- Bluestein Ventures transitioned from a family office to raising outside capital for their third $45 million fund, focused on investing in the future of food across various business models.
- Their investment strategy emphasizes finding businesses that hit the triumvirate of taste, price, and nutrient density, particularly in the plant-based meat category.
- They believe retail concepts like Foxtrot have the potential to achieve venture-scale returns if executed well, with a focus on strong unit economics and cash efficiency.
- Channel strategy for food brands should balance online and retail presence, with a focus on building strong unit economics and taking a long-term view.
- Cash efficiency and strong unit economics are crucial for success, regardless of the business model, whether it's a consumer brand, food tech, or software business.
- Building alignment with entrepreneurs early on regarding their vision and approach to building the business is essential for Bluestein Ventures' investment strategy.
- Consumers are becoming more knowledgeable about the impact of food on their bodies, driving demand for products that go beyond just being "better for you."
- Vertical integration and owning manufacturing can be a strategic decision for food companies, depending on the nature of their product differentiation and proprietary technology.
Top Episodes Quotes
- “We created a portfolio across the supply chain, because it is a mix of that risk reward and that's what we're trying to do when we kind of put this portfolio together.“ by Andrew Bluestein
- “I think anytime something gets hyped, you get the negative nancy that come to the market. But as continued innovation happens in that space, it's going to continue to grow.“ by Ashley Hartman
- “It's all about creating alignment upfront with the entrepreneur. And, like, I can't predict where things are going to go. You know, a few years in and we create a long relationships with our entrepreneurs. But I do understand, I want to understand the earliest stages, how you want to build the business.“ by Andrew Bluestein
- “I think better for you was a starting point, but I think in the next five to ten years, we're only going to take this to another level because consumers are much more knowledgeable about their bodies.“ by Ashley Hartman
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Episode Information
The Consumer VC: Venture Capital I B2C Startups I Commerce | Early-Stage Investing I Brands
Mike Gelb
6/27/24
Our guests today are Andrew Bluestein and Ashley Hartman, Managing Partners of Bluestein Ventures. Bluestein Ventures invests in the future of food. What does that mean? They focus on investing in High-growth consumer brands, Proprietary foodtech, Next-gen commerce, Value-add digital technology. They just raised a $45 million third fund – which huge congrats to them for doing so. We discuss the transition from family office to VC firm, investing in inventory businesses and technology businesses, the difference between fund 3 and funds 1 and 2, what happened with Foxtrot, future of plant based meat, and much much more.
Thank you to our Partner –– Propeller Industries Industries https://www.propellerindustries.com/
Propeller Industries is the leading strategic finance and accounting partner for venture-stage companies.
0:00:00 - Intro
0:03:32 - Trends in Food Industry Digitization (35 Seconds)
0:07:14 - Food-Centered Investing Strategy Discussion (65 Seconds)
0:13:38 - Supply Chain Investing and Business Models (78 Seconds)
0:27:45 - Channel Strategy for Expanding Food Brands (75 Seconds)
0:38:10 - Plant-Based Meat (59 Seconds)
0:41:52 - Debate on Plant-Based Meat Benefits (91 Seconds)
0:50:59 - Investing in Great Businesses (77 Seconds)
0:57:47 - Optimizing a Complex Store Concept (67 Seconds)
1:02:09 - Strategic Framework in Business Startups (54 Seconds)
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