Matt Salzberg Raises $25M for New Venture Studio, Material

Material: A New Venture Studio Emerges

Matt Salzberg, previously the co-founder and CEO of Blue Apron until 2017, has re-entered the startup landscape with a new venture studio named Material.

Alongside Salzberg, Material is guided by partners Andy Salamon – formerly a general partner at Atomic Labs with investments in Hims and Terminal – and Danielle David Parks, who co-founded Jane Strategy.

A Deliberate Approach to Company Creation

The studio has been operational for a year and has recently secured its initial $25 million fund. Salzberg emphasized that Material will adopt a “slow and deliberate” methodology for building companies.

This involves extensive industry research – described as “more private-equity-style due diligence than venture-capital-style diligence” – identifying viable opportunities, and then recruiting an executive to co-found the company with the Material team.

Co-Founding and Long-Term Support

“We function as true co-founders,” Salzberg explained. “Providing support in areas like talent acquisition, fund resources, investor introductions, and strategic guidance.”

As the company matures and attracts external funding, Material’s role will evolve towards that of a board member, allowing the co-founding CEO to manage daily operations.

Quality Over Quantity

Salzberg clarified that the objective isn’t rapid company creation. “We aren’t aiming to launch five or six companies annually,” he stated.

Instead, Material prioritizes deep involvement with a select number of ventures. “We prefer to be significantly involved with very few companies.”

Launch Strategy and Investment

The team intends to introduce two new startups each year. The concepts for these companies will “almost always” be developed internally at Material, focusing on building businesses “from scratch” rather than making initial seed investments.

Salzberg acknowledged the personal fulfillment this approach provides, but also highlighted its financial benefits. “It’s also the correct investment strategy for generating strong, risk-adjusted returns,” he asserted.

Material aims to mitigate startup risks through thoroughly vetted ideas, experienced founders, and substantial initial capital – ranging from $2 million to $4 million.

Existing Portfolio

Startups originating from Material include Kitchen to Kitchen, a restaurant delivery service spearheaded by former FreshDirect CEO Dean Furbish.

Other ventures include Suma Brands, an Amazon brand acquirer led by Andrew Savage, previously COO of Dolls Kill, and a sales-focused startup currently operating in stealth mode.

Areas of Focus

While open to opportunities across various sectors, the Material team expresses particular interest in e-commerce – aligning with Salzberg and Salamon’s backgrounds – and the future of work.

These areas represent key strategic priorities for the studio’s future endeavors.