Investor Appetite Grows for Food Delivery Startups

Investors are salivating over food delivery startups, at least judging from a series of funding announcements in recent weeks.

Munchery, a startup that provides same-day delivery for meals prepared by local chefs, announced Thursday that it raised a $28 million Series B round, bringing its total funding to date to about $35 million. The company intends to use the funding to expand its service to new cities beyond the Bay Area.

The majority of the new round — $25 million — was contributed by Sherpa Ventures. Shervin Pishevar, the VC firm's founder, had pitched in for Munchery's seed round and Series A, and believes the company has the potential to be "bigger than Chipotle," a bold statement considering Chipotle generated more than $3 billion in revenue last year. Read more...