Nutrition Capital Network (NCN), an organization that connects investors with high-potential growth companies in the nutrition, natural product and health and wellness industry, presented 64 companies to its investor members at four investor meetings in 2014. This brings to 407 the total number of companies presented at 23 investor meetings since NCN was founded in 2007; presenting companies were selected from more than 2,000 applicants.

Investors favor beverages, snacks and condition-specific supplements

Of the 40 companies that presented at NCN’s two day-long investor meetings in 2014—NCN XIV in New York and NCN XV in San Francisco—55 percent were natural, organic or functional packaged food and beverage; 15 percent supplements/medical food; 15 percent ingredients; 5 percent personal care and household brands; 5 percent IT-related; and 5 percent retail, according to CEO and Principal Grant Ferrier. “Overall our dealflow database is somewhat similar in terms of segment breakdown,” he noted.

“Investors continue to be interested in innovative brands in wellness and nutrition that are past proof of concept and ready to scale or go beyond regional distribution,” said Ferrier. “The numbers show that beverages, snacks, and condition-specific supplements that are consumed frequently are favored by investors, but our meetings also prove that a unique product concept with an authentic story and a seasoned, well organized management team has the best odds of raising capital.”

Ingredients and science attract pharma, biotech and life science investors NCN also held two half-day investor meetings in 2014 dedicated to science and ingredients and principally aimed at functional foods, supplements and consumer health; 24 companies presented.

“Healthy and functional foods are a battleground for market share between the world's biggest food and beverage companies, and consumer health is increasingly a serious endeavor for leading pharmaceutical companies,” Ferrier observed. “This is making the science, intellectual property and ingredients behind new nutrition and health and wellness products of utmost importance.” Among NCN investor-members are leading ingredient suppliers like DSM, BASF, Ingredion and others, in addition to life science and biotech investors looking for natural or faster-to-market compounds compared to the conventional drug track.

More than half of NCN companies complete a transaction

Analyzing the flow of companies that have presented at NCN investor meetings from 2007 to 2013, 195 out of 330, or 59 percent, have raised capital or completed some sort of transaction, suggesting that more than 35 of the 64 NCN 2014 presenters will have completed a transaction by this time next year.

“Although not all transactions are directly or exclusively attributable to NCN, a success rate of nearly 60 percent is indicative of the talents of our 20-member selection committee in choosing and advising companies that appeal to a range of investors in the nutrition and health and wellness industry,” said Ferrier. “It also reflects the support of NCN’s evolving network that creates a productive ecosystem for young growth companies.”

Highlights of NCN past presenting companies announced in 2014:

Companies invited to apply

NCN invites companies to apply to present their business plans at its NCN investor meetings in 2015 by applying online at surveymonkey.com/s/LLJJKF9 (no cost to apply). More information is available on www.nutritioncapital.com or by contacting Executive Director Mike Dovbish at [email protected] (415.202.5254).