Cereal company Kellogg Company (NYSE: K) is establishing its own corporate venture capital fund.
eighteen94 capital (1894) will make minority investments in innovative companies and startups pioneering new ingredients, foods, packaging, and enabling technology providing growth capital and access to the Kellogg’s resources and expertise.
Managed by Simon Burton, managing director, 1894 intends to invest approximately $100m in emerging businesses in both Kellogg’s core categories and adjacent categories, and in companies that have developed new consumer-driven technologies that could lead to long-term, mutual growth opportunities. While stage-agnostic, the fund will emphasize early stage opportunities with companies that have demonstrated good product and market fit and have generated initial revenue.
Touchdown Ventures, which specializes in corporate venture capital, will assist with management of the fund.
With 2015 sales of $13.5 billion and more than 1,600 foods, Kellogg is the world’s second largest producer of cookies, crackers and savory snacks; and a frozen foods company. Popular brands include Kellogg’s®, Keebler®, Special K®, Pringles®, Kellogg’s Frosted Flakes®, Pop-Tarts®, Kellogg’s Corn Flakes®, Rice Krispies®, Cheez-It®, Eggo®, Mini-Wheats®, etc.