NetZro aims to address the huge problem of food waste and the many social, environmental, and economic issues that result from it. The company’s biotechnology processes recovered food by-product waste, reducing its volume, recapturing water, eliminating bacteria, AND preserving nutrient value. This allows NetZro to turn various food by-product waste streams directly into new products that can be sold profitably.
Venn’s PRI will help NetZro develop and deploy its first food by-product waste solution at commercial scale. This first solution will turn spent grain from Twin Cities craft distilleries and breweries into up-cycled low carb, high protein food ingredients like grain and flour. The project has the potential to divert many tons of spent grain away from landfills, reduce greenhouse gas emissions, and create new high-value products from existing food waste rather than from new resources.
Recipient Name: NetZro, SBC
Corporate Form: Specific Benefit Corporation
Entrepreneurs: Sue Marshall, Founder & CEO
Investment Sought: $50k - $250k
Overview of Preliminary Investment Terms:
Accrues simple interest at 3% annually before conversion
Maturity: Optional conversion to most senior equity in set years at a set pre-money valuation.
Qualified Financing: Automatic conversion to equity at a sliding discount (0%-15% based on timing) to the stock price negotiated in qualified financing. Set valuation cap.
Change of Control before Qualified Financing: No conversion. Venn will receive 1.5 times the principal and accrued interest then outstanding.