How a new $40 million VC fund wants to embed culture into food innovation

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August 3, 2023

On Monday, Noramay Cadena and Shayna Harris, co-founders of the venture firm Supply Change Capital, announced the close of their inaugural $40 million fund. Investors included General Mills’ venture arm 301 INC, MassMutual and the Illinois Growth and Innovation Fund.

Two years in the making, it stands out as a significant win for a more just and sustainable food system for two reasons: First, it’s one of the largest Latina-led funds. Second, the investors primarily support startups with diverse leadership whose innovations often benefit communities of color that remain underserved in the climate space.

Mind the gap

Despite the increased focus on diversity in the private sector over the past years, inclusion in the investment and startup community still has a long way to go. A mere 16.1 percent of venture capital decision-makers are female and just 2 percent of venture capitalists identify as Latinx.

The numbers look even worse for startups than venture capital firms. Still, in 2022, startups founded exclusively by women have received only 2.1 percent of total U.S. venture capital investments. The chances of closing a deal were even worse for women of color. While these numbers have improved in the past years, we still have a very long way to go.

This is where Supply Change Capital aims to make a difference. Latinx, Black and female founders account for 80 percent of its portfolio. “We’ve seen momentum over the last three years around wanting to see yourself and your heritage represented on shelves, whether that means beauty, clothing, or food,” said Cadena. “And that’s relevant for venture [capital firms].”