Foodzie raises $1M for foodie treats
Foodzie, an online marketplace for specialty-food producers and growers, has just raised $1 million in seed funding. The company is part of this year’s group of startups incubated by TechStars.
Foodzie launches with 25 small food artisans and growers on its site. It’s much easier for foodies to discover new products on a single site than through the artisans’ standalone web sites (think about how many bands link to their MySpace music pages). With an emphasis on handmade and locally-grown products from across the country, you can’t just pick up Foodzie’s offerings at your nearest Whole Foods or specialty-foods store. Hand-dipped chocolate-covered graham crackers and California cheese made from fresh raw milk are just a few of the treats available.
It’s easy for producers to set up an online store through Foodzie, and establish their personalities through their company and product descriptions, Foodzie says. Consumers have a direct way of contacting the individual producers as well, through e-mail. You can also recommend new products for Foodzie to carry here.
The site connects buyers directly to the producers, unlike Amazon or iGourmet. This way, the producers manage their inventory and all of the shipping while Foodzie handles the transactions. When we last spoke to Foodzie, their revenue model involved a small $0.60 cent transaction fee and about 20 percent commission on all sales. Hopefully, the producers can keep up as demand grows for their creations and the site expands with more vendors. Organic, gluten-free, vegan and nut-free products appear to be among the most sought after items on Foodzie.
The seed funding comes from from Jeff Clavier at SoftTechVC, First Round Capital and undisclosed angel investors.
Next Story: Steve Jobs’ health not behind the keynote snub, says the one story with an actual source
Previous Story: Report: Small online news sites more proven than large ones
