Full Harvest: Reducing Food Waste with Imperfect Produce

Addressing Global Food Waste with Digital Solutions

The issue of food waste represents a substantial global economic challenge, currently valued at $2.6 trillion annually, with approximately 40% of all food being discarded each year. Full Harvest posits that the core of this problem lies in inefficiencies within the distribution network, a challenge they believe can be overcome through the digitization of the produce supply chain.

A B2B Marketplace for Surplus Produce

Based in San Francisco, Full Harvest operates a business-to-business marketplace specifically designed for produce. This platform facilitates rapid transactions between buyers and sellers of surplus or imperfect crops with just a few clicks. It simultaneously generates an additional income source for farmers.

Outdated Practices in the Produce Industry

Christine Moseley, Founder and CEO, has highlighted that a significant portion of produce businesses still rely on traditional methods like pen, paper, and fax machines for their operations. This reliance on antiquated systems creates friction and inefficiencies.

“Our aim was to modernize this vital industry and bring it online, resolving longstanding issues,” Moseley explained. “A considerable amount of paperwork is typically involved in produce transactions, but automating the onboarding process has reduced what once took weeks to mere minutes.”

Technology and Quality Control

Full Harvest developed a technology suite including a spot marketplace powered by a matching algorithm, providing buyers with real-time visibility into supplier availability. Furthermore, a rigorous third-party audit and verification system was implemented to ensure consistent product specifications.

This focus on quality control significantly reduces the amount of rescued produce that is ultimately rejected. While the industry average rejection rate is 10%, Full Harvest maintains a rate of only 1% to 2%, according to Moseley.

Growth and Funding

Over the last two years, Full Harvest has experienced a fivefold increase in its impact on diverting food from landfills, prompting the company to seek further investment to sustain its growth trajectory.

Today, Full Harvest announced the successful completion of a $23 million Series B funding round. Telus Ventures spearheaded the investment, with participation from Rethink Impact, Citi Impact, Doon Capital, Stardust Equity, and Portfolia Food & AgTech Fund, alongside existing investors like Spark Capital, Cultivian Sandbox, Astia Fund, and Radicle Growth. Jay Crone, Investment Director at Telus, will be joining Full Harvest’s board of directors as part of this investment.

A History of Investment

Full Harvest’s journey has been marked by consistent investment. The company was initially profiled in 2016, followed by a $2 million raise in 2017. An additional $8.5 million in Series A funding was secured in 2018. This latest round brings the company’s total funding to $34.5 million.

Key Partnerships

Full Harvest collaborates with prominent companies across the food and beverage, processing, and grower sectors, including Danone North America, SVZ, and Tanimura & Antle.

“The need for more sustainable business practices is increasingly apparent, particularly within the food and beverage industry,” stated Surbhi Martin, Vice President of Greek yogurt and functional nutrition for Danone North America. “By sourcing produce through Full Harvest’s online platform and utilizing fruit that might otherwise be wasted, we are meeting the growing consumer demand for sustainable food choices.”

Revenue Model and Expansion

Full Harvest’s revenue model centers around taking a percentage of each transaction completed on its marketplace. The company experienced a tripling of revenue between 2020 and 2021, driven by increased supply chain transparency, as reported by Moseley.

The team has also grown significantly, expanding from eight employees in 2018 to 35 currently, and extending its geographic reach to include Canada.

Future Investments

With the new funding, Moseley plans to prioritize technology development, aiming to triple the size of Full Harvest’s technology and product teams in 2022. Further expansion across North America and enhancements to its data and market insights offerings – including produce availability, pricing, specifications, sustainability data, quality assessments, and forecasting support – are also planned.

A Competitive Landscape

Full Harvest is part of a growing wave of companies addressing food waste and attracting venture capital. Recent funding announcements include:

• TreeDots: Secured $11 million in Series A funding for its B2B food surplus marketplace and a social commerce feature.
• Shelf Engine: Raised $41 million in Series B funding in March, followed by an additional $2 million in September, focused on reducing food waste in grocery stores.
• OLIO: Received $43 million in Series B funding for its food sharing app.
• Apeel: Secured $250 million in Series E funding for its plant-based protective layer for fruits and vegetables.
• Too Good to Go: Obtained $31.1 million for its marketplace connecting customers with surplus food.
• Martie: Launched with $3 million in seed funding to divert shelf-stable items from landfills.
• Imperfect Foods: Raised $95 million in Series D funding for its sustainable grocery delivery service.

Differentiation and Leadership

While numerous companies are innovating in the produce space, Moseley believes Full Harvest distinguishes itself through its specialized expertise in sustainable products and its established leadership in digitizing the produce supply chain, positioning it at the forefront of both areas.

Looking Ahead

The company’s next steps involve forging partnerships focused on logistics technology to facilitate further scaling and broaden the range of products offered.

“Significant improvements in our technology and user experience followed the automation of previously offline processes,” Moseley noted. “We also expanded our spot buy marketplace and achieved a milestone of 50 million pounds of produce sold.”