Read on Twitter
1/ This weekend @goustocooking 
announced its latest round of funding, at a valuation in excess of $1 billion 
https://sifted.eu/articles/gousto-uk-unicorn/
I thought I would look back on Gousto when we first invested vs now. Thread
...
announced its latest round of funding, at a valuation in excess of $1 billion https://sifted.eu/articles/gousto-uk-unicorn/I thought I would look back on Gousto when we first invested vs now. Thread
...
2/ We met Gousto in late 2012. Timo & James had quit their jobs earlier that year & launched out of a living room 
. They'd just come out of beta, with 130 active customers. They were about to close an angel round with food industry execs (super helpful) and @AngelCoFund
. They'd just come out of beta, with 130 active customers. They were about to close an angel round with food industry execs (super helpful) and @AngelCoFund
3/ At the time, we all admired Graze, Abel & Cole, Riverford, Ocado, and the Swedes 
- Lina's Matkasse and Middagsfrid had 1% of the local grocery market between them. The belief was that the same was possible in the UK 
. We all underestimated the size of the opportunity!
- Lina's Matkasse and Middagsfrid had 1% of the local grocery market between them. The belief was that the same was possible in the UK . We all underestimated the size of the opportunity!
4/ Later in 2013 they'd 5x-ed revenue 
and achieved what they'd set out on operations and unit economics. We agreed a term sheet for MMC to lead a £1m funding round.
and achieved what they'd set out on operations and unit economics. We agreed a term sheet for MMC to lead a £1m funding round.
5/ During our due diligence, Timo and James appeared on the BBC's 'Dragon's Den' 
. Turns out that having a huge spike of TV-driven traffic in the middle of DD is good for getting your round closed!
. Turns out that having a huge spike of TV-driven traffic in the middle of DD is good for getting your round closed!
6/ At the time Gousto had a partnership with Ocado, which accounted for half of all deliveries. The team made a brave decision to go it alone and own the whole customer experience. Switching off half your orders and a giant partner was scary 
but the right thing.
but the right thing.
7/ Over time Gousto grew and grew, scaled up its operations and welcomed new investors including @UnileverVenture, @BGFinvestments, Hargreave Hale and Perwyn - and of course Joe Wicks @thebodycoach 
The company has now raised £155m 
. @MMC_Ventures has now invested 10 times.
The company has now raised £155m . @MMC_Ventures has now invested 10 times.
8/ A lot of the money raised has been invested in a highly-automated warehouse (and now several) and in one of the most talented data science teams in European tech. This has been key 
to personalising the customer experience, just-in-time purchasing, smart pick+pack and more.
to personalising the customer experience, just-in-time purchasing, smart pick+pack and more.
9/ Years of incremental progress in each of these areas has enabled Gousto to scale fast but also release margin. This has been reinvested in quality ingredients 
and lower customer prices, expanding the offering to serve more families and address a bigger market.
and lower customer prices, expanding the offering to serve more families and address a bigger market.
10/ MMC's partnership with Gousto has spawned other opportunities along the way, too. When Ops leader Ricardo Hummel migrated their data stack to @snowplowdata, he was so impressed that he left to join them. We followed soon after, with MMC leading Snowplow's Series A in 2019.
11/ We've also had a fruitful exchange of people. @SandoDominic left MMC to join Gousto in 2018 and is now a talented Head of Growth. We hosted Timo's Chief of Staff @aidanwillcocks on a 6m secondment, later reciprocated with @DelsAkin. His takeaways here https://mmc.vc/latest/the-road-to-4-million-meals-some-takeaways-from-my-time-at-gousto
12/ Gousto now delivers 5 million meals every month 
, employs over 1,000 people across the UK (heading to 2,000 
) and proudly helped to feed the nation through lockdown.
, employs over 1,000 people across the UK (heading to 2,000 ) and proudly helped to feed the nation through lockdown.
13/ It also continues its focus on sustainability 
. The founding vision was to eliminate food waste (vs >30% in supermarket supply chain). They achieved near zero years ago 
. Next is plastic - they reduced usage by 50% (over 100 tonnes) in 2019 and will go further this year.
. The founding vision was to eliminate food waste (vs >30% in supermarket supply chain). They achieved near zero years ago . Next is plastic - they reduced usage by 50% (over 100 tonnes) in 2019 and will go further this year.
14/ As Timo says, it's still 'day one'. The grocery market is vast, & online adoption has leapt forward by a decade in six months. A billion dollars is a nice number for the VCs but a sustainable, profitable, fast-growing biz that customers love is the most important thing! /end
