Flood Of Well-Financed Food Start-Ups Will Lead To A “Bubble”

A certain “recklessness” is entering the food business, one related to the disastrous (to investors) tulip market bubble of the 17th century when inflated tulip bulb prices sank like a stone. Food historian Robyn Metcalfe says a new bubble is coming, largely due to the fact that investment capitalists are not subjecting food industry start-ups to the same careful scrutiny they devote to other start-ups. Instacart, for example, raised $220 million with a $2 billion valuation on revenue of $100 million. “At least it had revenue,” says Metcalfe. Unfortunately, a lot of food business startups have yet to produce any revenue. We should welcome the plethora of food start-ups, says Metcalfe, but “let’s get ready for the food bubble.”