Mary Kay James (pictured), a managing director (MD) at DuPont Ventures, the corporate venturing unit of the eponymous chemicals company undergoing a complex merger with peer Dow Chemical, has joined US-based meat processor Tyson Foods to run its new $150m fund.
Tyson New Ventures will invest in alternative proteins, food security and using the internet in the food chain and its first deal was acquiriing 5% of Beyond Meat, which has created a plant-based protein, in October.
James, a Global Corporate Venturing Rising Star 2016 awardee, said as well as three to four people in the deal team, she would also be setting up an incubator to connect with companies as potential acquisitions.
Monica McGurk, executive vice president of strategy and new ventures and president of foodservice for Tyson, said investment activity in agriculture- and food-tech companies was on the rise.
She added: “We can accelerate the growth of startups through our capabilities in such areas as food and culinary research and development, sourcing, insights, customer relationships and distribution. By doing so, we hope to materially advance the state of the US and global food system.
“This fund is about broadening our exposure to innovative, new forms of protein and ways of producing food, while remaining focused on our core fresh meats, poultry and prepared foods businesses, which are also experiencing tremendous consumer demand and growth.”
The company has been undergoing management change with Tom Hayes, president of Tyson Foods, stepping up to succeed Donnie Smith as CEO at the end of the year. Smith had been CEO of Tyson Foods since November 2009.
Tyson, which is the world’s top meat processor, had bought Chicago-based Hillshire Brands, the packaged-meat spinoff of Sara Lee, for $8.55bn in 2014 and James and her team will be based there.
Similar large-scale M&A has been impacting James’s former company, DuPont, which is planning to merge with peer Dow and then split into three companies covering agriculture, specialty chemicals and plastics over potentially the next 18 months.
DuPont Ventures has been preparing for the transition with James and her former colleague, Michael Blaustein, both leaving. Frank Klemens, director of intellectual assets management and MD of DuPont Ventures covering electronics and communications, nutrition and health, industrial bioscience and DuPont Protection Solutions, and Vivek Sharma, strategy and business development lead for DuPont Biologicals, are covering ventures with Tyler Ames as business manager in the Science & Innovation Business Development Group at DuPont.
On the other side of the merger, Kevin McElgunn, director of venture capital at Dow, said: “Until the merger closes, Dow leadership has restricted all employees from holding any external conversations about ‘life after the close’. Meanwhile, Mark [Felix, head of Europe,] and I continue to support Dow businesses in identifying and assessing venture-backed firms for potential strategic relationships and, where appropriate, supporting a strategic relationship with financing. In short – business as usual for now!”