NatureBox’ latest $30 million Series C fundraising round led by Global Founders Capital, following an $18 million Series B round in April 2014, illustrates investor confidence that the online, direct-to-consumer snack delivery business model has long term viability.
Since its launch in January 2012, NatureBox’ total fundraising has nearly reached $60 million. Given this significant sum and the rapid succession of the rounds, it is apparent that investors are growing more confident in the online subscription business model.
Among the many factors that make the business model attractive to investors is its ability to capitalize on multiple long term growth drivers including home delivery which answers consumer demand for convenience, flexibility and personalization through the ability for consumers to customize their orders, affordability, portion controlled servings, and an offering of natural, unique, niche food products. One of the newest investors in the Series C round, John Foraker, president of Annie’s added that the business model also offers access to real-time consumer data that can drive rapid product innovation.
The subscription model is not only growing in popularity in the snack sector, but across multiple food platforms through companies including Love With Food, Mouth, Graze and nibblr.
Having already expanded into Canada, and already forged an agreement to supply American Airlines with in-flight snacks, NatureBox plans to use the new capital to expand its business model into additional food categories and into new markets, channels, and eating occasions.
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