Humble was founded by three successful industry veterans, including Orgain founder Andrew Abraham, RxBar founder Peter Rahal, and consumer lawyer and Giannuzzi Lewendon founder Nick Giannuzzi. Growth has a massive $321 million in cash, from which it plans to write checks ranging from $10 million to $40 million. For mid-term innovative consumer brands. It also features an impressive roster of investors with lived experience and ready to share lessons learned, including the founders of Nestlé Health Sciences and Body His Armor and Stonyfield Farms.
In this episode of FoodNavigator-USA’s Soup-To-Nuts podcast, Humble Growth founder and CPG attorney Nick Giannuzzi talks about what it takes to raise capital in today’s economy and why money isn’t everything. Talk about what companies and products are used. The fund is interested in investing and is interested in seeing what the next two years look like for CGP companies to raise capital. He also shares the tough lessons and advice he learned to overcome financial challenges.
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A “purposeful” approach to financing and investing
The current capital squeeze is not only difficult for small and medium-sized businesses, but also for limited partners to invest in investment groups, especially first-time funds like Humble Growth, which has raised an eye-popping $312 million. The amount of funds entrusted to them has also been reduced. It deserves more attention.
The amount of capital and the caliber of investors speaks to the success of Humble Growth’s founders and the reality of how much capital it takes to make money in today’s environment.
Both had a purpose, Giannuzzi said.
“It didn’t make sense for us to set up a small fund,” he explained. One reason is that the three of them were well aware that choosing which small businesses would succeed was “really, really difficult.” .
“Our thought process was that by having a big fund, $300 million plus an endowment, we could write a bigger check a little further down the line,” he said.
Giannuzzi said by targeting companies with at least $20 million in revenue, they will ensure there is product-market fit, pricing is right, and consumer loyalty and ongoing demand. He said it will be easier to check and consider whether it is appropriate. Data suggests that the company will continue to grow.
How did Humble Growth raise so much money during difficult economic times?
Humble Growth’s logic in creating such a large fund is sound, but the question remains how the company’s first fund raised so much money during one of the worst times in fundraising history. And how can small businesses achieve the same?
“We were successful because … we didn’t do the typical thing,” Giannuzzi said.
He said Humble Growth’s founders are working as co-packers, founders, distributors and suppliers to succeed in the industry – rather than going to the usual sources of funding such as family offices or pension funds. He explained that he went to people who knew what was needed. Food industry. And because they have the money now, they are interested in supporting entrepreneurs and the companies that Humble Growth invests in.
“There [are] …100 of us willing to help. And everyone who wrote a check said, “Yes, we can help you.” We send you the deals that we’re looking at, roll up our sleeves, help that founder and their management team, and introduce you to them,” Giannuzzi said.
Success means being a warrior and a worrier.
While Humble Growth has a deck of LPs ready to fight for the entrepreneurs and companies they invest in, Giannuzzi eschews the adage that people, especially leaders, should be warriors, not worriers. There is.
Instead, he says, successful entrepreneurs, including many of Humble Growth’s LPs, are both warriors and worriers, a combination that gives them an advantage over their competitors.
Being an entrepreneur requires being fearless and having the courage to launch a brand, but “unless you’re an idiot, you’re always worried. The odds are not that high. The chances of success are not that high,” and “the great… To be a good warrior…you have to be a person who worries, because you go to sleep in fear and wake up the next morning to fight again.
“We truly desire longevity and good health.”
Humble Growth values the experience and ethos of the founding teams and entrepreneurs behind potential investments, while ensuring product and brand fit leverages real consumer needs and long-term trends, rather than fads. I’m also looking for sex.
“We really love longevity and health. Why do we like it? The same reason everyone else likes it, because that’s where people are starting to get a lot of attention,” he said. said.
Looking back over the past 10 to 15 years, Giannuzzi said most of the successful fads and trends, including those that briefly exploded and stuck, are centered around improving consumer health. That central trend will continue, he said.
What’s next for food and beverage investments?
A self-described “glass half full” man, Giannuzzi is optimistic about the future of Humble Growth and the broader consumer goods industry, even as he acknowledges the current investment challenges and the reality of so-called “easy money.” . What was available before the pandemic is unlikely to return to the dining space.
“We’re seeing a slowdown. We’ve certainly seen mild M&A activity over the last two years, and that’s kind of the driving force, and it trickles down,” Giannuzzi said.
He added that the industry is in a trough but believes it will rise again and “have another really good time.”
Giannuzzi said he is not an economist, but he hopes 2024 will be better and 2025 will be a “really good” year.
