June 28, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

It was in April of this year that 301 INC, the venture arm of General Mills, committed a combined $15 million to two early-stage venture capital funds dedicated to supporting food enterprises led by women of color as part of its dedication to promoting racial and gender equality through economic opportunity.

“We experience firsthand the expertise and passion of the diverse and female founders within our 301 INC portfolio, and yet there is a systemic gap for minority food entrepreneurs looking for early-stage venture capital funding,” said Doug Martin, chief brand and disruptive growth officer, General Mills, at the time.

One of these funds is Supply Change Capital – a women and Latina driven venture firm, with a mission to invest “at the intersection of food, culture, and technology” in order to support early stage food and food tech founders that incorporate a focus on sustainability, health, and diversity.

Forty percent of new businesses in 2020 were launched by women, and of those launches, 47 percent were by women of color. And when examining the last decade, Latinos represented the fastest growing demographic of entrepreneurs in the U.S., growing by 34 percent, according to Stanford University, compared to only 1 percent for all other groups.

However, during 2020, funding for women and minorities actually declined, with only 2.6 percent of venture capital deployed as of August 31, 2020 landing with Black and Latinx founders, according to Crunchbase. 

Intention for 301 INC and General Mills includes using their expertise and scale to counter this, and bring greater equity in food access and representation. Since June 2021, when General Mills’ corporate venture capabilities were reorganized into a Disruptive Growth organization, approximately 80 percent of 301 INC’s investment dollars have been committed to minority-led or female-led food businesses, including Grub Market, Pet Plate, and Everything Legendary.

In April, Noramay Cadena, co-founder and managing partner, Supply Change Capital, said, “As the multicultural consumer population in the U.S. grows, we are focused on unlocking change in the venture ecosystem to infuse women and people of color with the capital they need to shape our future food landscape. We’re thrilled to have the support of General Mills in our network.”

Now, Supply Change has support from another powerful backer, announcing an equity investment from Bank of America (BoA)

Co-founders Noramay Cadena and Shayna Harris stated that this capital will help sustain the fund’s momentum toward its funding goal of $40 million to invest in diverse founders across the technology, sustainable ingredients, and culture-first branded supply chains.

“The rising multiculturalism of America is having a deep impact on the $6 trillion food sector in terms of what, how, and where we eat,” said Cadena. “Concurrently, climate change is the defining force of our generation, impacting food and agriculture across the supply chain.”

“The past year was record-breaking for food tech investments and IPOs. The food sector is essential to the economy, and innovation in this space will be critical in years to come.”

BoA is the first multi-million dollar institutional investor to back Supply Change Capital’s Fund I – a decision that aligns with the bank’s commitment to advance racial equity and economic opportunity. Under this mandate BoA has already deployed more than $300 million to more than 100 minority-focused investment funds active in the U.S. – in effect, acting as a force multiplier and encouraging other institutions to increase their investment in under-capitalized funds.

“Bank of America’s investment into Supply Change Capital underscores our ongoing efforts to catalyze highly-scalable, venture-backed businesses led by women and people of color,” said Raul A. Anaya, head of Bank of America business banking and president for Greater Los Angeles. “Supply Change Capital is well positioned to help more entrepreneurs scale their businesses while also addressing how technology can modernize our food system.”

~ 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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