If you thought the world didn’t need another prepared food distribution and delivery service, apparently you’d be wrong, as the newly minted startup Territory has managed to pull in $6.7 million for its healthier eating options.
The Washington-based company formerly known as Power Supply raised the money as it looks to expand to new geographies and consolidate its position in the Washington, DC, Southern California and San Francisco markets it’s already operating within.
The timing is auspicious, as another twist on the meal delivery service, Maple (which was backed by the Momofuku-famous celebrity chef, David Chang) has just shut down. Another prepared food delivery company, SpoonRocket, shut down last year.
Territory has what investors and the company’s founders hope is a fresher take on the food preparation and distribution game. The company taps local chefs for its supply and gives them pre-determined menus or ingredients selected by nutritionists or healthcare facilities that they can use to fulfill customer orders.
The company incorporated in 2011 when co-founders Patrick Smith and Robert Morton, old colleagues from the financial analysis website The Motley Fool hooked up with Jeff Kelly and Josh Krieger — two DC-based food entrepreneurs.
The company launched in DC in 2011 and expanded in 2015 to Los Angeles, followed by San Francisco last year, and Dallas earlier this year. The slow expansion is a reflection of the methodical way in which the company approaches growth.
To date, Territory has served 2 million meals through its roughly 350 distribution locations and delivery service.
The secret to the company’s success so far has been its go-to-market strategy, which depends on reaching out to customers through places like gyms and wellness centers.
It’s pre-prepared food for the crossfit set, a customer base that’s a reflection of the founders’ own lifestyle.
“After having ignored my health for a long period of time… I popped up and I realized my mortality was becoming pretty evident,” said Smith. “It led me to a commitment around fitness and nutrition.” At the time, he said there were few companies that truly offered the kind of dietary options he felt he needed. So he founded his own.
Smith and his co-founders aren’t alone, according to Morton. The 20-something to 40-something professionals committed to healthy lifestyles are naturally occurring hives of people, he said. Territory partners with…