Benchmark Makes ‘Contrarian’ Bet on Small Grocery Startup in Age of Amazon
The venture firm believes Good Eggs will appeal to millennials, who prefer to stock the kitchen with small, curated brands.
Source: Good Eggs Inc.
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Silicon Valley venture firms have cooled on food delivery startups, especially since Amazon traumatized the entire industry with its $13.7 billion acquisition of Whole Foods.
Not Benchmark. It’s participating in a $50 million round for Good Eggs Inc., which delivers artisanal farm products in the San Francisco area and has aspirations to expand in the western U.S. after a previous retrenchment. Benchmark’s Bill Gurley, who backed Uber Technologies Inc. and Open Table, has even joined the Good Eggs board. “This is a very unusual deal for us,” Gurley says. “It’s very contrarian.”