Sage Growth Capital, an Idaho-based investment fund specializing in companies that do not fit traditional models, has made its first investment: $200,000 in Killer Creamery.
Killer Creamery, based in Boise and headed by Louis Armstrong, makes 12 flavors of keto ice cream using medium-chain triglyceride (MCT) oil from coconut and sweeteners such as stevia instead of sugar. The company’s products are sold in a variety of grocery stores on the West Coast, including Albertsons, the Boise Co-Op, Fred Meyer and WinCo in Idaho. In addition, it can be ordered online.
Killer Creamery was one of the Idaho companies that John Williamson, director of Idaho operations with venturecapital.org, a Salt Lake City-based nonprofit venture accelerator and executive in residence for the College of Business and Economics at Boise State University, took to the Investors Choice event in Salt Lake City earlier this year. At that time, the company said that it expected to earn $2.4 million in revenue this year and to become profitable in 2020.
Managing partner Molly Otter had said in an Oct. 9 panel during Boise Startup Week that the firm had invested in an ice cream company that she wouldn’t name.
Sage Growth Capital, which launched July 1, is considered a revenue-based fund, which means investors are paid back out of the revenue the companies generate. The advantage of such a system is that repayments are flexible because they go up or down based on sales performance as opposed to a venture capital fund, where investors typically take a share of equity and participate in the company.
Sage had said at the time that it was in due diligence with several companies and that some of them were food businesses.
In addition to Otter — formerly chief investment officer of Lighter Capital in Seattle, where she worked in revenue-based lending — the fund’s managing partners are Kevin Learned, a partner with Loon Creek Capital in Boise, and Denise Dunlap, a co-founder and managing partner with Loon Creek.