Cavu raises $325 million "better-for-you" consumer fund

• Limited partners, meanwhile, are turning to dedicated consumer VC funds because so many generalists have exited the sector.

Zoom in: This is Cavu's largest fund since it was founded over a decade ago, besting its $275 million target.

• It will continue to focus on food and beverage products — the new fund's first investment is in magnesium-based drink brand Recess — plus wellness, beauty, and pet startups.
• Portfolio companies have included Poppi, which was purchased by Pepsi last year for nearly $2 billion, and Once Upon a Farm, which is expected to go public this week.

What they're saying: "Something we didn't expect is a lot of the political action that's happened to force changes in our food system," explains Cavu co-founder and managing partner Brett Thomas. "We're now seeing states and school systems all start to ban certain ingredients that were allowed here but banned in places like Europe and Canada, so that creates another secular win in terms of adoption.

• Her adds: "It's hard for Democrats and Republicans to agree on anything, let alone now, but there does seem to be bipartisan momentum on this, despite lobbying efforts being very heavy."