I just saw on news today that a food tech company ( that claims to reduce carbs in traditional bread products) successfully raised 7.5 million in series A. Its pre seed was an astoundingly 1 million.
I did some research and found a lot of questionable things in this food tech start up and wonder if any due diligence was done in such deals nowadays.
the founder has no food or chemistry background prior to this .
no patent mentioned but just say “proprietary”. from their websites and press release it seems it’s just a brand trademark. (Probably the patent application is on the way or they would have mentioned like the Beyond have done in their marketing).
no scientific stats show how the product is different from the traditional ones in terms of carb reduction . (they just say a number but didn’t mention any source how they measure etc ).
Its sales, according to founder, was exploding. “One million in the first three month” , the price mark is $4.5 per piece tho.
I read some reviews of the product online, it doesn’t seem like it’s overwhelmingly welcomed. I just don’t understand, how VC works nowadays. Do they still do due diligence?
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