brandproject Launches $43M Fund, Expanding Beyond Studio Model

BrandProject Launches $43 Million Venture Fund

BrandProject, a company with a proven track record of supporting thriving direct-to-consumer businesses – including Freshly (acquired by Nestlé), Persona (also acquired by Nestlé), and Chef’s Plate (acquired by Hello Fresh) – has announced the successful completion of a $43 million fundraising round.

This capital will be utilized for the firm’s inaugural traditional venture fund. The company was established by Andrew Black, formerly a co-founder of Virgin Mobile Canada and the president of LEGO Americas.

A Unique Approach to Startup Support

BrandProject has historically operated with a $12 million fund linked to BrandProject Studio. This studio offers more than just financial investment. A significant portion of the firm’s resources – reportedly six out of eight team members – are dedicated to actively assisting startups.

These team members often function as essential, yet temporary, leadership roles such as Chief Technology Officers (CTOs), Chief Financial Officers (CFOs), and Chief Marketing Officers (CMOs).

Expanding Investment Capabilities

The newly formed BrandProject Capital fund will enable the firm to make larger investments in companies that are at a more developed stage. Andrew Black anticipates investment amounts ranging from $1 million to $3 million per deal.

The fund’s strategy involves allocating capital equally between new investments and follow-on funding for startups initially supported by BrandProject Studio.

Focus on Team and Market Validation

“We will continue to support businesses aligned with the Studio’s ethos, but Studio is open to very early-stage ventures, prioritizing the strength of the founding team,” explained partner Hayden Williams. “Capital investments, however, will require demonstrable evidence of initial success, even on a limited scale.”

The firm’s core investment focus remains firmly on direct-to-consumer brands.

Pandemic Didn't Alter Strategy

Despite the substantial growth in e-commerce spurred by the pandemic, Black confirmed that BrandProject’s investment strategy has remained consistent.

“Our investment criteria haven’t shifted due to COVID-19,” he stated. “We consistently invest in categories, brands, and market segments that address fundamental consumer needs.”

Notable Limited Partner

A key limited partner in the new fund is Michael Wystrach, the co-founder and CEO of Freshly, which was acquired by Nestlé for $1.5 billion. Wystrach initially connected with BrandProject after reading about them in TechCrunch.

He proactively sent meals to partner Jay Bhatti in New York, hoping to gain their attention.

Early Support for Freshly

At the time, Freshly had only secured funding from friends and family, and Wystrach admitted they were receptive to investment from any source. Fortunately, Bhatti enjoyed the meals, leading to BrandProject’s investment.

Following the investment, Black served as an interim co-CEO, Bhatti as interim CTO, and Andrew Bridge as interim CMO, providing crucial guidance.

A Collaborative Partnership

Wystrach emphasized BrandProject’s collaborative approach. “They never dictated the direction of our business,” he said. “They empowered us to build our vision, acting as supportive team members throughout the process.”

He likened BrandProject’s involvement to the U.S. education system, stating that the new fund represents a shift from providing foundational support (K-6) to assisting companies in their growth phase (middle school).