Launched last December by the industry veterans behind JPG Resources and RCV Partners, RCV Frontline is seeking to invest annually in four seed- and series A stage emerging brands with $1-5 million revenue run rates in the food, beverage and food technology space that want to bring their products to the largest audience possible.
As fund co-founders Andrew Reynolds and Erc Stief explain in this episode of FoodNavigator-USA’s Investing in the future of food, RCV Frontline seeks to help fill two emerging gaps – the first in operationally-focused funding for early stage brands and second around a shortage of innovation in coming years as ongoing fallout from the pandemic.
‘We saw a gap in that early stage’
Over the past decade, as more investment interest has targeted the food and beverage industry, many funds have grown and are looking for more developed companies that have a stronger proof of concept that can justify larger checks, Reynolds said.
“As that happened, I think we saw a gap in that early stage where there aren’t a ton of really operationally focused, experienced funds out there,” and RCV Frontline can fill that gap, he said.
Stief explained that RCV Frontline is well positioned to fill this gap because the founders all have experience operating or launching food and beverage companies, including finding financing, developing products, managing supply chains, manufacturing and brand building.
They also have experience working at large CPG companies, as well as many connections within those companies, that help them as they consider exit strategies, he added.