PowerPlant raises $330M fund to expand beyond food

PowerPlant Partners has closed a $330 million fund that will expand to consumer tech and so-called "enablement companies" that improve production.

Why it matters: The LA-based food-tech venture capital firm is looking beyond the farm in a move that suggests it's seeking to both de-risk its food tech investments and to expand more broadly into consumer wellness.

Details: The new fund, PowerPlant Ventures Fund III, will invest $15 million to $40 million into companies, typically as a minority investor.

• It's aiming at "larger, more established growth companies," particularly those generating revenue between $10 million to $75 million, a spokesperson tells Axios.
• In spite of the fund’s non-food aspirations, its first four investments are in food and beverage companies: Miyoko's Creamery, a plant-based dairy company; Liquid Death, which sells canned water (not Malört, as the name might suggest); Partake Brewing, a non-alcoholic beer company; and Systm Foods, which has acquired sustainable-coffee company Chameleon Cold-Brew and Rebbl, a plant-based drink maker.

State of play: Relative to other climate-tech sectors, food tech had a relatively strong H1. But venture dollars into the space have slowed overall from last year. Q1 alone plummeted 41% from the previous quarter.

Of note: PowerPlant's last fund closed in 2019 with $165 million. It invested in four beverage companies, plus vegan supplement maker Rae Wellness and nutrition-focused food-tech Treasure8, per PitchBook.