Participated · Series C · Jul 2022

Kitchen United operates a platform combining commercial kitchen space, restaurant-hub technology and streamlined logistics to help foodservice operators enter new markets, grow off-premises revenue and expand delivery areas. Its technology enables customers to order from multiple prepared food and consumer goods brands on the same ticket and with the same delivery driver, synchronized to maximize quality and payload while minimizing time and expense. The company also develops Kitchen United OS, a multi-concept ordering technology platform used by national restaurant brands. Led by CEO Michael Montagano, Kitchen United currently powers approximately 200 operational kitchens across 20 regions. The company plans to increase both its technological and physical presence, with continued focus on Los Angeles, New York City, Chicago, Texas and other U.S. trade areas. Management intends to use the recent funding to accelerate growth and expand operations. Kitchen United operates commercial kitchen centers that house 10–15 restaurant brands each, providing operators a value-driven, low-risk way to enter new markets and expand delivery areas by removing capital and technology barriers. Launched in 2017 and headquartered in Pasadena, Calif., the company positions itself as a strategic real estate partner for restaurant chains as consumer preference shifts to off-premise dining. Kitchen United handles operations so restaurant brands can focus on food while scaling via shared kitchen infrastructure. The company cites a large addressable market—William Blair estimated U.S. off-premise restaurant sales at $279B in 2018, growing to an expected $402B in 2022. Current locations include Pasadena and Chicago, with upcoming openings in Scottsdale and Austin and additional sites under construction in Chicago, San Francisco, Los Angeles and other major markets. As part of its growth strategy, Kitchen United plans to enter New York City through a relationship with RXR Realty to open kitchen centers in RXR and other Tri-State properties. The company recently closed a financing round to support expansion into its primary growth markets, including New York City, Chicago, Los Angeles, San Francisco and Boston. Kitchen United is a virtual-restaurant concept that operates "Kitchen Centers" — converted warehouse, big-box or light-industrial facilities that can house 10–20 restaurants and centralize delivery production. The company aggregates demographic and cuisine-specific demand data to select locations and provide restaurant partners opt-in consumer and operational intelligence to tailor menus, staffing and operations. Kitchen United positions its offering as a lower-cost, lower-risk way for national, regional and local chains and food entrepreneurs to enter new markets and expand off-premise dining. Launched in 2017 and headquartered in Los Angeles, the company says its centers create operational efficiencies and reduce delivery costs while expanding partners' addressable delivery markets. Kitchen United plans to use recent funding to accelerate national growth and to build its real estate, marketing, engineering and operations teams. Leadership brings experience from chains and hospitality companies including Taco Bell, McDonald’s, SBE Entertainment and Wolfgang Puck.

Led · Series A · Apr 2022

Food Rocket is a Chicago-based on-demand grocery delivery startup that operates a 15-minute delivery service and uses AI-enabled technology to manage warehouse stock, forecast demand and optimize delivery routing. The company typically carries around 3,500 products and since launching in California in 2021 it sees a 60% repeat purchase rate and an average cart size of $30. Revenue has grown roughly 40% month over month. Food Rocket plans to convert dark stores into micro-fulfillment centers, launch a dark-kitchen arm for ready-to-eat items, and eventually expand to deliver items such as phones. The company says it will create over 2,000 jobs in new areas and provides full-time employment to all of its riders. Food Rocket operates a mobile app that promises 10–15 minute delivery of fresh groceries, ready-to-eat meals and household goods to neighborhoods across the Bay Area. The company is launching service in areas including SoMa, South Park, Mission Bay, Japantown and Hayes Valley. Food Rocket has publicly said it hopes to open 150 dark stores on the West Coast as part of its infrastructure. The startup raised a $2 million investment round from AltaIR Capital, Baring Vostok fund and the Angelsdeck group of business angels. Philipp Bashyan of Yandex joined the round as an investor and advisor. Vitaly Aleksandrov is the CEO and co-founder. The company is positioning itself against incumbents such as DoorDash, GoPuff, Instacart and Amazon Fresh.

Participated · Series C · Feb 2021

Jackpocket’s core product is a mobile-first lottery ticket ordering service that purchases physical tickets on users’ behalf, provides watermarked scanned images, and enforces age and location compliance via GPS and ID checks. The app has 2.5 million active users and currently operates in 10 U.S. states, with active-user growth up 300% in the past eight months. Its business model charges a 9% fee on customer deposits (no fee on winnings used to play and no withdrawal fee). The company emphasizes responsible gaming with spending monitoring and an initial $100-per-day cap. Jackpocket plans to use new funding to expand beyond lottery ticket sales into broader mobile gaming (raffles, sweepstakes, bingo, social casino games), invest in technology and best practices from e-commerce, subscriptions, and mobile wallets, and expand into additional states and partnerships. It operates out of New York with an operation in Santa Barbara, CA, where CEO Peter Sullivan is based. Jackpocket is a NYC-based licensed third-party app that provides a secure way to order official state lottery tickets. Led by CEO and founder Peter Sullivan, the app enables users to automatically order official state lottery tickets through the company's licensed service. It is currently available in Arkansas, Colorado, Minnesota, New Hampshire, New Jersey, New York, Ohio, Oregon, Texas and Washington, D.C. The company closed a $50M Series C round to support growth. Jackpocket intends to use the funds to grow its user base as it launches in new jurisdictions and to expand the team. The company is expanding to many new markets. Jackpocket is a mobile-first third-party app that enables players to order official state lottery tickets such as Powerball and Mega Millions and to manage plays through features like lottery pools, autoplay, and result checking. The company emphasizes security, including automatically locking a player’s identity to a ticket serial number. Jackpocket is available in Minnesota, New Hampshire and Texas and said it is expanding to many new markets in 2019. Since its Series B announcement the company reports it has tripled ticket sales and grown its player base by over 150% in six months, and it has awarded $1 million in player prizes in 2019 to date. The platform is positioned as a no-cost, no-integration turnkey solution for lotteries to drive incremental revenue and attract new customers such as millennials. Leadership includes founder and CEO Peter Sullivan, with recent senior advisors Gavin Isaacs and Paul Palmieri. Jackpocket is the first third-party mobile app in the U.S. that enables users to order official state lottery tickets (Powerball, Mega Millions and state games) and check results. Its core product includes a proprietary ticket-scanning and processing technology that uses machine learning, a Pools feature for group plays, and autoplay functionality. The app enforces responsible-play measures such as a $100 daily limit per user and in-app access to the National Council on Problem Gambling. Jackpocket is available in New Hampshire and Minnesota and was recently inducted as an Associate Member of the North American Association of State and Provincial Lotteries. The company says its platform is a no-cost, no-integration turnkey solution that helps lotteries drive incremental revenue and attract new players. Management plans to use new capital to expand the service into additional jurisdictions.