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

April 22, 2015: 12:00 AM EST
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.”
Robyn Metcalfe, "The Coming Food Bubble", Tech Crunch, April 22, 2015, © AOL Inc.
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