Everytable, the Los Angeles-based startup that prices their healthy meals around $5 in underserved communities, said it closed a $16 million Series B round on Tuesday.
Kaiser Permanente Ventures, a venture arm of the health care giant, joined lead investor Creadev in the funding. It marks Kaiser Ventures' first investment in a "fresh-prepared food company to support community health," according to a statement announcing the news.
Everytable sells individually prepared meals that are priced according to what each neighborhood can afford. The food is cooked at a kitchen in Lincoln Heights and distributed to grab-and-go stores across the city. Locations in Compton and South L.A. have meals starting around $5 while their Santa Monica and Brentwood locations are more expensive.
Former hedge fund trader and Everytable CEO Sam Polk is behind the vision. He wanted to create an affordable fast food chain as a healthy alternative to the McDonalds and Subways that populate so-called food deserts, low-income neighborhoods where fresh grocery options are limited.
Since founding in 2016, Evertyable has sold over four million meals and partnered with the City of L.A., Santa Monica College, the Department of Aging and Los Angeles Homeless Services Authority.
According to the statement, Everytable will use the bump in capital to build more stores throughout Southern California and expand its subscription delivery service. The startup is also preparing to launch in its first market outside of L.A. and will build out its social equity franchise program.
That initiative will use the $4.5 million raised by investors like the W.K. Kellogg Foundation and the Annenberg Foundation to offer funding opportunities to graduates and train entrepreneurs to open Everytable locations in their own areas.
"Creadev, along with new and existing investors, shares our mission and passion to transform America's food system to ensure that everyone has access to affordable and nutritious food," said CEO and founder Sam Polk. "Nutritious food should not be a luxury afforded to few."
Other investors include Candide Groupe, Gratitude Railroad Ventures, Desert Bloom Food Ventures and Kimball Musk, a chef and philanthropist who sits on the board of his brother's companies Tesla and SpaceX.
The company had already raised $14.8 million as of September, according to Pitchbook.