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Daily news and analysis about the food tech revolution

food funding

Plum Raises $9 Million To Create An AI-Powered Keg For Wine

One of the worst things about opening a bottle of wine and not finishing it – aside from the lack of drunkenness – is the shortened shelf-life that bottle now has. Once air hits the wine, oxidation kicks in and at first may allow the beverage to open up but will eventually cause the wine to go bad.

That is the main problem driving wine startup Plum, a company that’s created and patented a smart wine serving appliance (aka a fancy keg for wine) that preserves a bottle of wine for 90 days, allowing single serving pours for up to three months. Plum has just raised a Series A round of $9 million and plans to ship pre-ordered systems this fall. Similar attempts have been made to create devices to make serving beer more enjoyable and close to an “on-tap” experience but Plum claims to have the first appliance that “automatically preserves, chills and serves wine by the glass” in the home market.

Plum has several unique features and requires very little of the consumer to get started. Place a 750 mL bottle of wine into the appliance’s chamber and close the door. The machine’s specialized (and patent-pending) needle will pierce whatever material surrounds the bottle’s opening and extract wine while also injecting argon gas to prevent oxidation.

The appliance is pretty high-tech too: with built-in cameras along with a cloud database of over 6 million wines, Plum will read the wine label and identify on the touchscreen what bottle is inside. The company claims the device is able to accurately identify wine’s 95% of the time. Plum is a good example of the growth in the use of cameras inside cooking and storage appliances paired with cloud intelligence to enhance the consumer experience with food and beverages.

The machine also chills the wine based on the varietal but can be manually adjusted by the user. And the life of the argon gas chamber is up to 200 bottles (refills are $29) so Plum’s initial longevity can be pretty long, depending on your individual drinking habits. The price of Plum’s smart wine appliance isn’t cheap – one system will set you back $1499 and the company is still taking preorders with plans to ship in “fall 2017.”

The $9 million investment, led by Khosla Ventures (Hampton Creek, InstaCart, Consumer Physics) and Las Olas Venture Capital along with other angel investors from the tech, wine and hospitality markets. The company says the investment will be used to take the smart appliance to the hospitality industry, allowing hotels to put Plum in guest rooms to deliver a better “mini-bar” experience and adding another in-room revenue source. Plum has already inked deals with big hotel chains including Four Seasons, Hilton, Marriott and the Hyatt among others.

Hungry for Funding? New Avenues for Food Startup Financing are Opening Up

Ask many people how to find funding for emerging food projects, and lots of them will point to crowdsourcing sites. After all, sites such as Kickstarter have driven concepts ranging from PicoBrew to the Anova Precision Cooker to levels of funding that would put a smile on any startup founder’s face. Indeed, when it comes to gadgets and devices in the food arena, the widely known crowdsourcing sites can pay off, but other kinds of concepts are finding funding through alternative routes and alternative crowdsourcers.

Where can you turn if Kickstarter or GoFundMe don’t seem right for your project? If you have a food or beverage startup concept, consider PieShell. It’s based in New York, and was founded by entrepreneur Cheryl Clements. Check out some of the concepts that PieShell is funding here.

Part of PieShell’s concept is that crowdfunding has benefits that go beyond just money. “Crowdfunding ultimately brings you closer to your customers — something that’s crucial for startup success,” notes PieSheller Caroline Halter. “Branching out beyond friends and family helps you learn what your customers like about your product, as well as what they don’t like. For instance, one of our first PieShellers, Edamam, crowdfunded to build a nutrition app. The crowdfunding experience helped them realize that their real potential was in B2B (business-to-business), rather than consumer markets.”

According to Halter, another benefit to crowdfunding is that it can give you an instant hook for a pitch to the press. “Once you get a little bit of press, it’s much easier to get more,” she said.

 Credibles is another avenue to look into for funding. It was started in San Francisco in 2014 by founder Arno Hesse. The twist that Credibles provides is a way for customers to financially support their favorite food businesses. The basic concept is that customers are investors. Customers can prepay a business by starting a tab with the business, and then they draw on the tab whenever they visit.

Credibles offers food and beverage businesses financial flexibility up front. Case in point: Driver’s Market is a small grocery store that focuses on transparent, non-GMO sourcing direct from as many local producers as possible. Through Credibles, Driver’s Market has already raised over $100,000 from its customers, with the first $10,000 arriving in 10 days. You can find out how to get your business or concept funded with Credibles here.

The angel investors who provide funding for technology-focused startups have their counterparts in the food and beverage arena. Food Angels is an organization that strictly invests in early stage food and food-tech startups. The group consists of accredited angel investors who screen companies each month and select a few to consider for funding. Food Angels invests in the form of equity, royalties and more.

There are also community organizations for food startups seeking funding. The Angel Food Network is an organization of emerging food and beverage companies seeking funding. Membership is by invitation and you can apply here.  Some types of food and food tech concepts may also qualify for the IKEA Bootcamp accelerator program, which will reward startups trying to solve the world’s problems. Food tech concepts have the potential to qualify, and you can find out more here.

Finally, it’s worth noting that the world of food funding has its own dedicated conferences. Future Food-Tech is one that is typically held in North America and Europe, and the Food Investing Conference is another one to look into.

Getting a project funded can call for some creativity, but there are more options available to startups than ever before. Entrepreneurs who think outside the box will have the strongest chances to find funding.

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