Startup Food Chain
IP Uh Oh
Since GrubHub Seamless went public with a valuation of $2.67 billion, venture capitalists are racing to find the next hit food delivery app for their portfolios.
According to the report on the CB Insights blog, investments in food tech in the first quarter of 2014 (Q1) were the highest they’ve been in five years. Over $200 million went to food and grocery apps during those three months, which was the biggest VC investing boom in over a decade.
Most of these are small, local apps that focus on a particular set of stores and services, whereas GrubHub and Seamless are nationwide giants with a combined 25 years under their belts. The two companies merged last year, and served over three million customers nationwide in 2013 alone.
What happens when you combine tech investment fervor, hype-as-absurdist-performance-art and the kind of advanced mathematics required by birthday party magicians to “pick a number, any number at all”? You get a brief history of Groupon’s valuations in the press. This is what a coupon company whose value increases by a factor of 48 in less than two years looks like in TechCrunch headlines (with exceptions for context).