July 19, 2016

Advantage Capital Agribusiness Partners (ACAP) announced it has invested $3.7 million in Austin-based startup, NuturMe, a maker of organic quinoa-based baby and toddler foods and snacks.

Founded by Caroline Freedman and Lauren de la Rosa, NuturMe labels itself as the only line of gluten-free, organic, non-GMO, and kosher meals and snacks for babies and toddlers based on ancient grains without added sugars or preservatives.

“We’re dedicated to finding innovative new ways to ensure children are forming healthy eating habits right from the start and are excited to continue revolutionizing the way modern, health-conscious parents feed their little ones,” said Caroline Freedman, co-founder and CEO of NuturMe.

“A greater focus on nutrition is driving a boom in the baby foods market as parents look to start early to influence babies’ food habits,” said Tyler Mayoras, Principal at ACAP.

A shift in consumer demands toward more natural, transparent food choices has affected demand shifts in the baby food segment as well, and has driven a doubling of NuturMe’s sales over the past two years.

This investment marks the first investment in a baby food company for ACAP since its launch as a Rural Business Investment Company (RBIC) by the U.S. Department of Agriculture and nine farm credit organizations through the Rural Business Investment Program (RBIP) in 2014.

“It’s no secret that businesses in rural America face a shortage of investment capital,” notes Tim Hassler, Principal at ACAP. “Advantage Capital Agribusiness Partners is focused on making impactful investments to foster growth and job creation in those rural communities.”

NuturMe will use the fresh capital to support continued growth of its brand which will be available in more than 5,000 stores including Babies “R” Us, Whole Foods, and Safeway by the end of 2016.

Under its investment framework, ACAP invests between $2 million and $15 million in small agri-food businesses in rural regions across the U.S. Portfolio companies for ACAP include Shenandoah Growers, a greenhouse operation that produces herbs in Virginia, Indiana, Texas and Georgia, Pacific Ag, a crop residue supply chain solutions company, bulk herb and botanical product supplier, American Botanicals, irrigation management systems company, Hortau, Iowa-based egg producer, Iowa Cage-Free, and North American Natural Resources Inc., a Missouri-based bulk herb and botanical company.

“We are excited to see this fund continue to support businesses like NurturMe and look forward to seeing more partnerships like this come to fruition in the coming months,” says U.S. Secretary of Agriculture, Tom Vilsack.

—

Lynda Kiernan