July 18, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

Building upon the success of Valor Siren Ventures Fund I (VSV I), Valor Equity Partners announced that Valor Sire Ventures II (VSV II) closed oversubscribed on April 1, 2022 at $595 million. 

Founded in 1995 by managing partner and CIO Antonio J. Gracias, Valor Equity is a previous investor in SpaceX, Tesla, Eatsa, Fooda, and Wow Bao, among others. The group launched VSV 1 in early 2019 with a $100 million anchor investment from Starbucks and a mission to back the next generation of food and retail technology startups. 

VSV I also acted as an incubator for startups with which Starbucks can partner, giving the company first-hand access to innovations that it can leverage to advance its own technology and retail platforms.

There has been a flurry of accelerators and venture capital arms launched by large CPG companies. This reflects the continued truth that there is a shift occurring within the food sector that is creating a scenario in which Big Food needs the rapid-response innovation generated by startups as much as startups need the capital available from Big Food.

The move to launch or anchor venture capital vehicles has become a widely used method by some of the world’s largest and most conventional companies to achieve diversification and relevance in a swiftly changing consumer market. CPG companies also use these programs as a means to stay a step ahead of their competition while realizing the growth potential in disruptive food innovation.

“We believe that innovative ideas are fuel for the future, and we continue to build on this heritage inside our company across beverage, experiential retail, and our digital flywheel,” said Kevin Johnson, president and CEO, Starbucks at the time. 

Continuing VSV I’s strategy, VSV II invests in and serves stand-out early stage companies, entrepreneurs, and founders making the world a better place through their focus on food, food tech, retail, retail tech, and sustainability.

Surpassing an initial funding target of $400 million, VSV II received anchor investments from Starbucks and Nestlé S.A., who were joined by return investors Marriott International, Gordon Food Service, Alshaya Group, and Alsea.

“We are incredibly grateful to be trusted and backed again by Starbucks and Nestlé, two iconic companies in the food, beverage and retail industry,” said Jon Shulkin, manager of Valor Siren Ventures Funds, and partner and co-president, Valor Equity Partners.

“Our world class strategic and financial partners in VSV I rejoined us in our oversubscribed VSV II fundraise,” added Shulkin. “VSV II will continue to partner with and serve exceptional entrepreneurs and companies that are driving innovation and leadership within our sector focus areas with an increased emphasis on sustainability.”

Before a transaction even closes, the VSV team stated that it will begin working directly with its portfolio management teams to establish what goals each company is trying to achieve and to determine the challenges that must be addressed. And as Valor works alongside each portfolio team, operational plans are developed and deliverables and outcomes identified.

“At Valor, we invest with and serve outstanding entrepreneurs and companies that are making the world a better place,” said Antonio Gracias, founder, CEO and CIO, Valor. “VSV II is another example of our team delivering the firm consistent with our mission and purpose. Consistent with our long term track record, VSV II, building on the success of VSV I, provides a unique and value-added platform for Valor to serve early stage companies.”

~ Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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