Shef Raises $20M to Expand Homemade Meal Delivery

The Growing Trend of Home-Cooked Meal Sales

Despite existing legal complexities, an increasing number of cities are adapting to allow individuals who prepare food at home to supplement their income through local sales.

Shef is a marketplace designed to facilitate connections between these home chefs and their customers, managing orders and coordinating food delivery. The company has recently secured $20 million in funding to further its expansion.

Series A Funding and Key Investors

The company announced its Series A funding round today, spearheaded by Andreessen Horowitz and supported by Y Combinator, Craft Ventures, M13, and a diverse group of celebrities.

Notable investors include Padma Lakshmi, Chef Aarón Sánchez, Katy Perry, Tiffany Haddish, Orlando Bloom, and NBA All-Star Andre Iguodala.

Jeff Jordan, a General Partner at Andreessen Horowitz and former CEO of OpenTable, will be joining Shef’s board of directors as part of this investment.

Operational Adaptability and Ordering Process

Due to variations in local regulations, Shef’s operational model differs depending on the specific market.

In some areas, the platform utilizes existing local delivery services for final-mile delivery, while in others, chefs are responsible for delivering the meals themselves.

The ordering process is consistent across all markets: customers select a chef, place their order several days in advance – pre-orders are essential for chefs to plan effectively – and then reheat the meal upon delivery.

Navigating Legal Challenges

The legality of services like Shef is subject to regional differences.

Even within California, where a recent state law permits home cooks to sell their creations, the ultimate authority and implementation details rest with individual counties.

In many locations, operating a “homecooking” business still necessitates access to a commercial kitchen facility.

Strategic Allocation of Funds

Shef’s co-founders, Alvin Salehi and Joey Grassia, acknowledge the legal hurdles and are proactively addressing them.

They indicated that a significant portion of the raised capital will be allocated to two key areas: advocating for the legalization of their service in additional markets and onboarding new chefs as those markets become accessible.

To support these efforts, they have appointed Danielle Merida, formerly the General Counsel for TaskRabbit, to their team.

Chef Onboarding and Safety Standards

The company reports a waitlist exceeding 12,000 home chefs, a number that has grown substantially since the onset of the pandemic and subsequent restaurant closures.

Each chef undergoes a comprehensive 150-step onboarding process, which includes a food safety certification exam and a thorough food quality assessment.

Future Expansion and Commitment to Safety

“Our goal is to extend these services to as many individuals as possible, as there is a significant need,” explains Salehi.

“However, expansion requires resources to ensure both effectiveness and, crucially, safety.”

Shef is currently operational in the Bay Area, Austin, Boston, Chicago, Houston, Seattle, and New York, with plans for further expansion contingent upon regulatory approvals.