Thu. Jan 20th, 2022

Food waste is a $2.6 trillion global problem, as approximately 40% of food is wasted every year. Full Harvest believes this is a distribution problem that can be solved by digitizing the product supply chain.

The San Francisco-based company’s business-to-business marketplace offers product buyers and sellers a way to quickly close deals on surplus or imperfect crops in just a few clicks. It also creates an additional income stream for farmers.

Founder and CEO Christine Moseley told BestFitnessBands that a majority of manufacturing companies still use pen, paper and fax machines to conduct business.

“This is one of the most important industries and we wanted to automate the industry and bring it online to solve things that haven’t been solved before,” she added. “For example, there is a lot of paperwork involved in buying and selling, but by automating the onboarding process, that process that used to take weeks now takes minutes.”

So Full Harvest set out to develop a spot marketplace technology with a matching algorithm and visibility so buyers could see what suppliers had available. It also created a third-party audit and verification process to provide consistent specifications to reduce the average amount of rescued products that are rejected. The industry average stands at 10%, while the company’s rejection average is 1% to 2%, Moseley said.

Over the past two years, Full Harvest’s impact on keeping food out of landfills has increased fivefold, prompting the company to look for additional capital to maintain momentum.

Today, the company announced $23 million in Series B financing. Telus Ventures led the round, bringing in new investors Rethink Impact, Citi Impact, Doon Capital, Stardust Equity and Portfolia Food & AgTech Fund, as well as existing investors, including Spark Capital, Cultivian Sandbox, Astia Fund and Radicle Growth. As part of the investment, Jay Crone, investment director at Telus, joined Full Harvest’s board of directors.

It’s been a while since we checked in with Full Harvest. We profiled the company beginning its journey in 2016 and then again in 2017 when it raised $2 million. The company raised an additional $8.5 million in Series A financing in 2018. Including additional funding, the company now has $34.5 million in total funding.

The company works with big names in the food & beverage, processing and grower industries such as Danone North America, SVZ and Tanimura & Antle.

“The importance of building more sustainable businesses has never been more apparent, especially to those in the food and beverage business,” said Surbhi Martin, vice president of Greek yogurt and functional foods for Danone North America. “By purchasing products online through Full Harvest and selecting fruit for our products that would otherwise have gone to waste, we are responding to growing consumer demand for more sustainable food options.”

Full Harvest’s business model is to take a percentage of every trade made in its marketplace. Between 2020 and 2021, the company tripled its sales as it provided transparency in its supply chain, Moseley said. In 2018, Full Harvest had approximately eight employees; that has now grown to 35. The company also expanded geographically, including Canada.

With the new capital, Moseley plans to invest in technology development, triple the size of Full Harvest’s technology and product teams by 2022, further expand its presence in North America and expand its offerings in data and market insights, such as improving product availability, prices, specifications. , sustainable supply, quality and support for forecasting.

Full Harvest isn’t alone in tackling food waste and raising venture capital for their efforts. This year we’ve seen announcements from companies such as:

While that list of companies is innovating technology in the product sector, Moseley considers Full Harvest unique because it has its expertise in sustainable products and has proven itself as a leader in the digitization of the product supply chain, putting it at the forefront. on both fronts.

Next, the company plans to forge partnerships around logistics technology to further scale and expand the SKUs it can offer.

“We saw a significant increase in our technology and user experiences after completing some automation processes that were previously offline for the industry,” she added. “We also expanded our spot buy marketplace and reached a major milestone of £50m sold.”

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