Model and Strategy
Food System 6 (FS6) is a dynamic business accelerator for entrepreneurs who are innovating and designing solutions to transition us to a just and regenerative food system. The Accelerator primarily serves entrepreneurs that live and work in frontline communities that are disproportionately affected by the social, health, and environmental inequities of our current industrial food system – specifically Black, people of color, immigrants, women, people with lower incomes, those in rural areas, queer and indigenous people – and have historically lacked access to business accelerator programs and traditional finance opportunities.
FS6’s high-touch program is designed to equip frontline entrepreneurs with sophisticated business modeling support, custom financial coaching, a national network of diverse industry mentors, and a trusted community to heal financial trauma and build entrepreneurial stamina. While traditional business accelerators often focus on a singular goal of ensuring that start-up food and beverage companies are able to raise venture capital and ultimately exit by acquisition, the FS6 approach is to build community, educate on the variety of capital options available to entrepreneurs, provide a path on how to secure it, and ensure that the entrepreneur is ready – strategically and personally – to take on funding.
In the fall of 2022, FS6 is hosting a series of webinars resourcing entrepreneurs on fundraising and financial management. In Spring of 2023, FS6 will be launching its next national Accelerator program. Each cohort is multicultural, multi-racial, and multi-generational, comprising 10-12 entrepreneurs from across the United States who are designing alternative business solutions (including non-profit, for-profit, worker-owned, and cooperatively-owned entities) that serve children, families, seniors, and entire communities by returning cultural and economic sovereignty to their local and regional food systems. Typically, its entrepreneurs are early-stage, with fewer than 25 employees and less than $1M in revenue.
In addition to the Accelerator program, FS6 synthesizes the data it pulls from its selection process and programming to provide learning about how and why community food system innovations and alternative business models are working across the country. These are shared with its community of innovators and ecosystem of capital providers through transparent and open-sourced platforms.
Impact
Near-term success for Food System 6 portfolio companies includes the entrepreneur feeling resourced, empowered, inspired, and eager to use the tools that they have gathered to continue leading their organization. Mid-term success includes successful fundraising, improved relationship building, ecosystem leadership, team growth, awards, and accolades, instituting internal impact metrics, and professional and personal stabilization.
FS6 has a highly engaged portfolio of over 50 entrepreneurs who participated in the Accelerator’s first seven cohorts. The portfolio includes 50% women (when on average only ~3% of start-up founders are women) and 45% BIPOC-led and serving. While the typical startup survival rate is 10%, FS6’s portfolio survival rate is 90%. FS6 has supported its portfolio to raise over $250M in blended capital: funding from VCs, foundations, government grants, individual investors, and crowdfunding platforms. This does not include the debt financing FS6 has worked with many of its entrepreneurs to secure.
Along with the Accelerator, FS6 engages investors, philanthropic donors, and institutional funders in conversations and partnerships that provide a safe and authentic space to test new, transparent ways to invest in equitable food solutions. One of these funder partnerships will enable FS6 to offer this year’s Accelerator cohort participants non-restrictive grants of $50,000.
Longer-term, FS6 seeks to build a fund whose express purpose is to invest in the kinds of innovations that FS6 supports that are likely not suitable for other forms of capital. This will require defining the tools that are best suited for frontline early-stage innovations and testing its impact hypothesis over 5-10 years. FS6 wants to create a model for the type of long-term impact that is possible when a fund is oriented around flexible, accessible funding tools. Returns from these investments should be used to continuously fund more food system entrepreneurs.
Leadership
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Perri Kramer
Program Director