Bluestein Ventures, a Chicago-based investment firm, has recently closed its third fund at a whopping $45 million. This fund was oversubscribed and marks a significant milestone for the firm as it looks to expand its investment focus in early-stage businesses within the food and beverage supply chain. With backing from external family offices and entrepreneurs with expertise in the food space, Bluestein Ventures is set to increase its average individual check size from $500,000 to $1.5 million.
The firm plans to concentrate on three core investment pillars: nutrition, sustainability, and digitization. This strategic approach aims to capitalize on emerging consumer trends driven by health and wellness, as well as the growing digital economy. By identifying and investing in companies that align with these pillars, Bluestein Ventures hopes to stay ahead of the curve in the rapidly evolving food industry.
In addition to closing their new fund, Bluestein Ventures has brought on board Lindsay Levin, previously the CMO at RXBar, as a venture partner. Levin will play a crucial role in supporting operations and marketing for the firm’s portfolio companies. This strategic move reflects the firm’s commitment to providing hands-on support and expertise to the businesses it invests in.
Andrew Bluestein, Managing Partner at Bluestein Ventures, co-founded the VC firm a decade ago after identifying the shifting consumer habits towards healthier food options and digital platforms. With deep ties to the food industry through his family, particularly his mother Ilene Gordon, Bluestein Ventures is well-positioned to leverage industry expertise and insights to make informed investment decisions. Ilene Gordon serves as a key advisor to the fund, drawing from her experience as a former CEO and chair of Ingredion, a Fortune 500 food ingredient manufacturer.
Bluestein Ventures’ investment strategy focuses on transforming the food system to be healthier and more sustainable. The firm invests across the food supply chain, ranging from products on the shelves to manufacturing processes, at the earliest stage of a company’s lifecycle. Some of the notable companies in their Fund III portfolio include BiomeSense, WECO Hospitality, and Attane Health. These companies offer innovative solutions and technologies in the food space, aligning with Bluestein Ventures’ mission to drive positive change in the industry.
The successful close of Bluestein Ventures’ third fund can be attributed to the firm’s years of trust-building within the food industry. Despite a challenging fundraising environment, the firm’s commitment to its core investment thesis and strategic partnerships has enabled it to secure significant capital for future investments. As Bluestein Ventures looks to deploy capital from Fund III, its focus on nutrition, sustainability, and digitization will continue to drive its investment decisions and shape the future of the food and beverage industry.
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