Capital Providers

Overview

Avoid over-production, then harvest as much as possible. For wild-caught products, source only what is needed.

Financing Opportunity

This capital type can be beneficial in kick-starting the startup costs of organizations working to ensure that what is grown is utilized to its highest and best purpose. Government grants have previously assisted initiatives focused on creating markets for imperfect produce; this will likely continue, as others form and incentives need to be provided to encourage producers to harvest produce that would otherwise be left behind, which often requires additional picking and packing costs. Additionally, program-specific government grant funding can aid in the ongoing costs associated with on-farm gleaning and donation efforts.

Overview

Leverage technology to create smart systems that help efficiently move products to maximize freshness and selling time.

Financing Opportunity

Government grants can act as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development and adoption.

Overview

Align purchases with sales as closely as possible and find secondary outlets for surplus. Build out systems and processes for optimal on-site handling.

Financing Opportunity

Government grants can act as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development. Additionally, for a solution such as Waste Tracking, which requires upfront hardware and software costs, local government programs can provide incentives to spur adoption by smaller foodservice operators.

Overview

Design facilities, operations and menus to make as much of each product as possible. Upcycle surplus and byproducts into food products.

Financing Opportunity

Government grants can act as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development, R&D and pilot projects. In the case of Manufacturing Line Optimization, government grants can help reduce the upfront costs (e.g., costs related to service disruptions, capital expenditures, etc.) associated with the change-over of operations, particularly for small and medium enterprises.

Overview

Drive consumers towards better food management and less waste by creating shopping, cooking, and eating environments that promote those behaviors. Shift culture to place more value on food and reduce waste.

Financing Opportunity

Despite this being one of the most impactful action areas to fight food waste, the associated solutions (e.g., Consumer Education Campaigns, K-12 Lunch Improvements) can be harder to fund by more traditional sources of capital, since the return on investment is mostly derived from societal good and lacks a direct financial return. Especially for those solutions that drive the most impact but require a significant investment to work effectively at changing behaviors, government sources may be the most appropriate capital provider. That said, governments could invest in partnership with private stakeholders, including philanthropic funders, in consumer education efforts that increase awareness, offer food waste reduction strategies, and promote a culture of active waste avoidance. Additionally, government grants may be necessary to incentivize changes, particularly from a health and nutrition perspective. Grants covering the upfront costs of Trayless Dining systems and training can incentivize changes in smaller restaurants and medium-sized chains. Different levels of government can also provide grants to trade associations, academia, or nonprofits for areas requiring further research, such as Package Design and their impact on waste levels.

Overview

Further the rescue of high-quality, nutritious food by increasing capacity, addressing bottlenecks and improving communication flow.

Financing Opportunity

Government grants have a role to play in the intersection of food waste, hunger relief, and food donation – particularly in supporting donation education through grants to organizations focused on corporate and nonprofit education on policy, legislation, food safety, and liability. Additionally, government grants have a role in the early stages of food rescue initiatives by funding upfront costs. The expansion of grant and loan programs by federal agencies, such as the US Department of Agriculture, can help businesses expand processing capabilities, particularly on-farm where there are large opportunities for recovery. Funders can also help drive regional or coordinated efforts for asset sharing to improve overall logistics among various food recovery organizations. Funding sources from government agriculture programs may also contribute through the sourcing of healthy, fresh, and culturally appropriate foods for donation.

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Government grants can be helpful in accelerating the adoption of organics recycling solutions – from covering upfront costs or ongoing operating costs to making the adoption of a particular solution like Centralized Anaerobic Digestion potentially more viable from an economic standpoint. Specifically, grant funding could support site development, especially working to align community composting sites with other community assets to increase non-financial benefits, such as job creation and educational opportunities. Local government grant programs can help fund enabling technologies for recycling, such as waste hauling, dehydration, and depackaging. For smaller at-home solutions such as composting, local governments can also support the funding of recycling education and the initiation and maintenance of curbside pick-up programs.

Overview

Avoid over-production, then harvest as much as possible. For wild-caught products, source only what is needed.

Financing Opportunity

Gleaning organizations can be financed through charitable giving and “donations” by growers due to their non-profit nature. Although generally modest, the contribution of non-government grant dollars can be impactful for Buyer Spec Expansion and Imperfect Produce Lines to either help start organizations (in the case of the former) or cover the costs of behavioral changes (research and training) for both. Additionally, non-government grants can support marketing and educational efforts to farmers and consumers to stimulate adequate supply and demand for food related to Buyer Spec Expansion and Imperfect Produce Lines.

Overview

Leverage technology to create smart systems that help efficiently move products to maximize freshness and selling time.

Financing Opportunity

Although many solutions that enhance product distribution are internal corporate decisions, potential solution adopters such as retailers, manufacturers, and distributors can be incentivized through non-government grants, particularly smaller-to-medium sized firms. Reducing perceived risk by providing capital can help organizations to run pilot programs to make distribution efforts more efficient – thereby giving these businesses the opportunity to understand the ROI before financing themselves.

Overview

Align purchases with sales as closely as possible and find secondary outlets for surplus. Build out systems and processes for optimal on-site handling.

Financing Opportunity

Although many solutions that enhance product distribution are internal corporate decisions, potential solution adopters such as retailers, manufacturers, and distributors can be incentivized through non-government grants, particularly smaller-to-medium sized firms. Reducing perceived risk by providing capital can help organizations to run pilot programs to make distribution efforts more efficient - thereby giving these businesses the opportunity to understand the ROI before financing themselves. Additionally, early stage, mission-driven solutions such as Markdown Alert Applications which have a food access angle may also benefit from the assistance of non-government grants.

Overview

Design facilities, operations and menus to make as much of each product as possible. Upcycle surplus and byproducts into food products.

Financing Opportunity

Although many solutions that enhance product distribution are internal corporate decisions, potential solution adopters such as retailers, manufacturers, and distributors can be incentivized through non-government grants, particularly smaller-to-medium sized firms. Reducing perceived risk by providing capital can help organizations to run pilot programs to make distribution efforts more efficient - thereby giving these businesses the opportunity to understand the ROI before financing themselves.

Overview

Drive consumers towards better food management and less waste by creating shopping, cooking, and eating environments that promote those behaviors. Shift culture to place more value on food and reduce waste.

Financing Opportunity

This is one of the most impactful action areas to fight food waste, but the associated solutions (e.g., Consumer Education Campaigns, K-12 Lunch Improvements, etc.) can be harder to fund from more traditional sources of capital, since the return on investment is mostly derived from societal good and lacks direct financial return. Especially for those solutions that drive the most impact, but require a significant investment to work effectively at changing behaviors, non-government sources of capital may be the most appropriate capital provider. Philanthropic funders with local or regional ties can extend and supplement the reach of national campaigns to address additional customer segments. Grants covering the upfront costs of Trayless Dining systems and training can incentivize changes in smaller restaurants and medium-sized chains. Philanthropic funders can fund consumer education on new date labeling practices in partnership with manufacturers or retailers.

Overview

Further the rescue of high-quality, nutritious food by increasing capacity, addressing bottlenecks and improving communication flow.

Financing Opportunity

Non-government grants for solutions that strengthen food rescue and hunger relief efforts (including supporting the development of new concepts and the expansion of proven solutions) can be critical sources of capital, given that many of these business models have not historically resulted in market-rate returns that would be needed to attract more traditional sources of financing. Philanthropic funders can especially help drive regional or coordinated efforts for asset sharing to improve overall logistics among various food recovery organizations.

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Non-governmental, philanthropic capital can help bridge gaps in the financing of organics recycling infrastructure (particularly for more regional operations) and reduce real or perceived risks to business adoption (including for long term off-take agreement pricing risk). These grants also have a potential role to play in areas where the infrastructure does not have a strong business case due to lack of population and/or feedstock density to incentivize more distributed options (e.g., home composting rather than community composting). Non-government grants can fund non-profits and solution providers to develop large-scale consumer education and marketing campaigns around waste disposal.

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Further the rescue of high-quality, nutritious food by increasing capacity, addressing bottlenecks and improving communication flow.

Financing Opportunity

Tax incentives by design are intended to offset the incremental costs of donating (e.g., labor, storage, and ideally transportation) and cover some of the losses incurred by the food business. There is the potential to unlock “trapped” food in our system with an ambitious approach to tax incentives – both broadly by encouraging donations and more targeted through building out infrastructure and overcoming roadblocks such as transportation and storage.

Overview

Financing Opportunity

Overview

Avoid over-production, then harvest as much as possible. For wild-caught products, source only what is needed.

Financing Opportunity

Impact-First Investments can act as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development for Imperfect Produce Lines. In cases where there is a perception that low-price solutions mean low-margins (which are generally unattractive to traditional financiers), Impact-First Investments can act as bridge financing. Gleaning initiatives can also be catalyzed through Impact-First Investments with earned revenue which can require funding for tools, transportation, and storage infrastructure. Additionally, Impact-First Investments can support marketing and educational efforts to farmers and consumers to stimulate adequate supply and demand for food related to Buyer Spec Expansion and Imperfect Produce Lines.

Overview

Leverage technology to create smart systems that help efficiently move products to maximize freshness and selling time.

Financing Opportunity

Impact-First Investors can act as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development and the adoption of Intelligent Routing. Opportunities for Impact-First Investments in later stages of development may be less necessary, given that proven solutions in this category will likely be able to attract other capital types seeking profit, including Corporate Finance and Spending. Solutions in this action area can present operational risks, particularly for smaller organizations, which as a result may require an additional cushion of financial support to implement and/or pilot.

Overview

Align purchases with sales as closely as possible and find secondary outlets for surplus. Build out systems and processes for optimal on-site handling.

Financing Opportunity

Impact-First Investors may choose to finance solutions that refine product management efforts locally or nationally by funding incentives to reduce the cost of implementation of Waste Tracking solutions. Meanwhile, grants are also needed for their role as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development (e.g., Assisted Distressed Sales solutions).

Overview

Design facilities, operations and menus to make as much of each product as possible. Upcycle surplus and byproducts into food products.

Financing Opportunity

Impact-First Investments have an important role to play as catalytic, risk-taking capital ahead of more traditional investors, especially in the earlier stages of product development and adoption, – most notably through pilots. Solutions in this action area can present operational risks, particularly for smaller organizations, which as a result may require an additional cushion of financial support to implement and/or pilot.

Overview

Drive consumers towards better food management and less waste by creating shopping, cooking, and eating environments that promote those behaviors. Shift culture to place more value on food and reduce waste.

Financing Opportunity

Impact-First Investors can incentivize food waste reduction efforts in smaller restaurants, as well as medium-sized outlets and chains, by covering the upfront costs of Trayless Dining systems and training. They can also play a particularly powerful role in more hyper-localized organizations, where real impact can be measured and achieved but is not large on the whole. As a result, place-based funding for these types of solutions can be vital.

Overview

Further the rescue of high-quality, nutritious food by increasing capacity, addressing bottlenecks and improving communication flow.

Financing Opportunity

Impact-First Investments can act as catalytic, risk-taking capital to supplement grant funding. They could be particularly useful if focused on providing capital to cover the upfront or infrastructure costs necessary for food rescue that are essential for impact. A particularly powerful area for investments is the enabling equipment for food rescue, such as trucking or cold storage infrastructure for food donations.

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Impact-First Investments can help bridge gaps in financing organics recycling initiatives and projects (particularly for more regional operations) and help reduce real or perceived risks to business adoption. Impact-First Investments may play a very important role in funding the purchase of enabling technologies such as grinders or depackagers that may be too small a check size for project finance.

Overview

Avoid over-production, then harvest as much as possible. For wild-caught products, source only what is needed.

Financing Opportunity

Solutions in this action area that are most appropriate for Venture Capital financing include those that have differentiated marketing, branding, and distribution, such as Imperfect Produce Lines, in which regional and direct box delivery players have been gaining traction supported by early stage venture funding.

Overview

Leverage technology to create smart systems that help efficiently move products to maximize freshness and selling time.

Financing Opportunity

While many solutions that enhance product distribution are in the later stages of maturity, continued innovation and improvements (e.g., AI-enabled products and self-driving cars) and existing alternatives are still good targets for venture financing. Beyond providing funding, Venture Capital providers can also help play the role of strategic advisor or matchmaker among complementary solutions in this category, helping to develop complete, end-to-end solutions for food businesses to adopt.

Overview

Align purchases with sales as closely as possible and find secondary outlets for surplus. Build out systems and processes for optimal on-site handling.

Financing Opportunity

While many solutions that refine product management are in later states of maturity, continued innovation and improvements (ie: AI-enabled products and self-driving cars) and existing solutions are still worthwhile portfolio additions for venture financing. The recurring revenue models of Waste Tracking, Enhanced Demand Planning, Dynamic Pricing and Assisted Distressed Sales are particularly appealing to Venture Capital, depending on investment thesis and stage of development. The most powerful solutions in this action area are not only focused on providing the most effective product, but are able to integrate with existing systems. There is also a notable potential for automation in this category.

Overview

Design facilities, operations and menus to make as much of each product as possible. Upcycle surplus and byproducts into food products.

Financing Opportunity

A meaningful level of funding for Upcycling is needed from Venture Capital, as this solution remains relatively early-stage, requiring more R&D and time to prove out business models. Although solutions such as Active & Intelligent Packaging and Manufacturing Line Optimization are in the later stages of development, continued innovation and improvements (ie: AI-enabled products) to existing solutions can also be appropriate for Venture Capital.

Overview

Drive consumers towards better food management and less waste by creating shopping, cooking, and eating environments that promote those behaviors. Shift culture to place more value on food and reduce waste.

Financing Opportunity

While more limited than other action areas, Venture Capital can still play a role here, especially in the earlier stages of development of Package Design.

Overview

Further the rescue of high-quality, nutritious food by increasing capacity, addressing bottlenecks and improving communication flow.

Financing Opportunity

Technology-enabled solutions may be funded by Venture Capital, especially those with the potential for revenue generation. Coordination & Matching and Donation Transportation can lend themselves to app-based solutions or business software, which are models that Venture Capital may find appealing. However, given the association between food donation and charity, many solution providers that are interested in Venture Capital will need to confront a historical lack of willingness among food donors to pay for services. Other non-traditional and innovative food rescue business models may be appropriate for Venture Capital as well.

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Venture Capital is needed to fund startups in the organics recycling sector, as they continue to develop and scale. Direct-to-consumer niche opportunities in composting equipment, waste-related software, and other unique business models may be appealing to Venture Capital.

Overview

Avoid over-production, then harvest as much as possible. For wild-caught products, source only what is needed.

Financing Opportunity

Potential models of Imperfect Produce Lines solutions may require large amounts of infrastructure, given that they are warehousing and transporting a significant volume of fresh produce, which can be appealing funding opportunities for Private Equity.

Overview

Leverage technology to create smart systems that help efficiently move products to maximize freshness and selling time.

Financing Opportunity

Private Equity can play a role in solutions in this action area as they scale. The Intelligent Routing space is particularly interesting, but has many players. As consolidation occurs and winners emerge, Private Equity can help scale these solutions with growth capital. Additionally, optimization of the supply chain can be pursued by Private Equity, given major food supply chain actors can be acquired through this financing mechanism.

Overview

Align purchases with sales as closely as possible and find secondary outlets for surplus. Build out systems and processes for optimal on-site handling.

Financing Opportunity

Private Equity can finance solutions in this category as they continue to scale, but investors will likely avoid technology risk and consider businesses with hard assets that can adopt (i.e., pay for) solutions in this action area.

Overview

Design facilities, operations and menus to make as much of each product as possible. Upcycle surplus and byproducts into food products.

Financing Opportunity

Solutions in this action area are key targets for Private Equity financing due to their asset-heavy nature. Those that have potential cash flow generation and are more mature than earlier-stage organizations (at the stage of growth capital) are appropriate funding targets.

Overview

Drive consumers towards better food management and less waste by creating shopping, cooking, and eating environments that promote those behaviors. Shift culture to place more value on food and reduce waste.

Financing Opportunity

Innovative Package Design solutions are key targets for Private Equity due to their asset-heavy nature. Much of the innovation in this action area is occurring in established manufacturers, which would be appealing for Private Equity investors, as they can purchase existing, cash flow-generating businesses with the optionality of growth.

Overview

Financing Opportunity

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

The established nature of Livestock Feed businesses make them ideal targets for Private Equity, which can focus on driving further sustainability in operations. Additionally, new and emerging models for feeding animals using otherwise wasted food may be appropriate as well.

Overview

Avoid over-production, then harvest as much as possible. For wild-caught products, source only what is needed.

Financing Opportunity

Corporate Finance and Spending-type funding is often most appropriate for solutions in this action area, as these can be implemented internally by food organizations. Solutions such as Buyer Spec Expansion and Imperfect Produce Lines will create additional revenue opportunities. Food retailers have a significant amount of influence upstream in the supply chain and can implement these solutions alongside appropriate operational changes. Their internally generated capital will be directed towards researching customer preferences of specific types of food, sourcing off-spec food, transportation, and the implementation of new processes. Alternatively, direct-to-consumer business can enable these solutions as well.

Overview

Leverage technology to create smart systems that help efficiently move products to maximize freshness and selling time.

Financing Opportunity

Corporate Finance and Spending can provide a majority of the capital for solutions in this action area, as they are mostly a corporate decision with financial benefit going to the implementer through reduced shipping costs, cost of goods sold, loss from spoilage, etc.

Overview

Align purchases with sales as closely as possible and find secondary outlets for surplus. Build out systems and processes for optimal on-site handling.

Financing Opportunity

Corporate Finance and Spending is expected to be the largest bucket of financing required for solutions in this action area, since corporations can bear the implementation costs for these solutions while also receiving a great portion of the financial benefits. While some of these solutions increase costs (e.g., transport), this may be offset by increased revenue opportunities (e.g., more options for customers) and reduced costs of food waste disposal. Additionally, food businesses are likely to assess whether it is best to internally develop these capabilities or partner with outside developers of solutions such as Markdown Alert Applications and Enhanced Demand Planning. These types of technology-enabled solutions may attract the attention of organizations who service food businesses – such as other software providers and Point-of-Sale firms – thereby gaining further scale.

Overview

Design facilities, operations and menus to make as much of each product as possible. Upcycle surplus and byproducts into food products.

Financing Opportunity

These solutions are corporate decisions with a likelihood to result in net economic benefit; therefore investment in this action area would be most appropriate in the form of Corporate Finance and Spending. Corporations have shown recent interest in Upcycling as an opportunity to innovate product development, although uptake is not widespread yet. However, as this solution continues to develop as a category, it may attract strategic acquisitions particularly from manufacturing firms.

Overview

Drive consumers towards better food management and less waste by creating shopping, cooking, and eating environments that promote those behaviors. Shift culture to place more value on food and reduce waste.

Financing Opportunity

A number of solutions in this action area are expected to be mostly financed through Corporate Finance and Spending, given that they are often a corporate decision with potential financial benefits. Corporate Finance and Spending has a role to play in funding Consumer Education Campaigns, because retail organizations are important distribution points for food-related information (e.g., at the point of sale). Even a national, government-funded consumer education program can benefit from support from private stakeholders such as food businesses to help increase awareness, offer strategies for food waste reduction, and promote a culture of active waste avoidance. Corporations will not necessarily be viewing this type of spending from a return on investment perspective, but rather as a broad Environmental, Social, and Governance (ESG) or CSR strategy and/or brand/reputation building.

Overview

Further the rescue of high-quality, nutritious food by increasing capacity, addressing bottlenecks and improving communication flow.

Financing Opportunity

Although financial resources for paying for donations can come from tax incentives and charitable organizations, coordination and capital are required from food producers and retail. Coordination & Matching solutions, in the most basic sense of connecting with food organizations that have unused food, require a small amount of capital to fund associated labor and adjusting storage processes. Additionally, corporations can play an impactful role in supporting non-profit organizations in covering a portion of the transportation costs of food or lending their own transportation assets.

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Corporate Finance and Spending is positioned to provide a meaningful amount of the capital for this action area, as corporations receive most of the financial benefits for solutions like Livestock Feed, and disposing of waste is already a cost of doing business that could be reduced through a composting program. By adopting waste-related solutions, overall increased demand can make a stronger case for the further build out of projects on the government and investor side. Additionally, food growers upstream in the supply chain are expected to be using Livestock Feed and composting as best practices to get the most out of their preventable and unpreventable food waste.

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Low-cost Government Project Finance is uniquely positioned to finance solutions in this action area, as they create a public good despite potentially generating low-value products such as compost, which may or may not be economically viable as a for-profit venture. In many cases, Government Project Finance can be useful for entering into a funding structure covering a portion of the asset cost, thereby helping to de-risk a project. Government investment can also act as a valuable endorsement for projects, backstop risk (as more funding is appealing from a risk perspective), and ensure the asset generates regular service fees (e.g., citizens pay directly or revenue from taxation).

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Financing Opportunity

Overview

Find the highest and best use for any remaining food or food scraps in order to capture nutrients, energy, or other residual value.

Financing Opportunity

Commercial Project Finance is needed to fund organics recycling infrastructure projects that have the potential to be profitable by generating compost, service fees, or energy. For these solutions, Project Finance can be used to cover the upfront initial investment of facilities and larger pieces of equipment. In some cases, these projects can also be funded via a joint effort from public and private sources.