Food Site Gets Prized Ingredient: $83 Million in Funding

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AH from wondering I'm David Brown and this is business wars daily on this Thursday October tenth there were dollar a month subscription service that will deliver live video cooking lessons from celebrity chefs like Bobby Flay Guy Fieri the food network is modeling the Channel Home they felt it would be a good business opportunity notice that community I products second Well hellers instinct appears to have been and editor endorsed kitchen products ranging from aprons two sets of pots and pans and expensive candles what makes the company different is that its founders Amanda Heller in Mirror Awesome pop up stores success of course isn't guaranteed as recode points out the behemoth food network just announced a new somewhat similar venture seven stubs set out from the start to make food fifty two into a community the two whipped up the idea while cooking and stubbs kitchen heller dual sports recode reports companies in its portfolio don't rely solely on advertising for revenue but sell products or subscriptions the the success of Peleton the high end indoor cycling company it's betting that wealthy consumers will pony up for virtual cooking classes just like they do for spin classes right on because now the site claims millions of followers it's videos are entertaining board travelers on jet blue flights perhaps most importantly the founders salad the website is called food fifty two it offers a combination of superb writing for home cooks ranging from recipes to feature stories about workplace around crowdsource all of their product designs they say they tap into a community of twenty five thousand people for design ideas and feedback still with food and cooking the News Corp. which owns the Wall Street Journal he started turning group last year with the original intent to build a huge Internet conglomerate but that strategy sued fifty two's literary slant in some ways food 52s content is no different from what you can find on any good food blog recipes cooking tips in content coming out of our ears and eyeballs why did it investor sink so many millions into this particular site well. Peter Churn and used to run in your own business at more than one hundred million that's a hefty evaluation for a site started by two former New York Times food writers which by the way explained you know what I'm talking about and so good business news like good news in the wider world comes as a breath of fresh air today were reporting on the sale of a site that you may not assessment in restaurants and online stores selling kitchen and homegoods plus a wildly enthusiastic community that's the backbone of the business last week the evolved quickly and now T. CG take stakes in niche companies with clearly defined audiences like the meditation at Business Head Space and bars a venture capital firm called the Churn Group announced it's buying a majority stake in food fifty two for eighty three million dollars that stake values the ten you money will help Heller and stubs to expand their original line of kitchen and home accessories called five two they also plan to open a brick and mortar retail location as well told INC magazine in two thousand seventeen that they wanted a place online to hang out with other cooks and there wasn't one if they could create such an online while it's not the same model as food fifty two the channel is targeting the same audience as well funded as food fifty two now is it can't match the ever of heard out unless that is you're one of the millions of foodies who live and die by the best way to crush garlic or how best to season your roasted leaking apple strong bonds it's grown with its millions of followers who as Amanda Heller predicted love to hang out in its virtual space and that could be challenged resources of the multi-million dollar food network which has been around for more than three decades food fifty two has grown by some fifty percent a year over the last set if the new money turns out to be all about selling more cutting boards and garlic presses and less about funding mouth-watering recipes and stories about workplace the years according to the online newsletter morning brew now as venture capital boost the homegrown company into rocketship speed it lead to maintain the days when we feel like the business news is filled with failures and bankruptcies to be honest can get a little depressing if you listen to the show yesterday about forever twenty one linked in send a note by carrier pigeon whatever works best for you we sure appreciate. I'm David Brown back with you tomorrow

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