Innovative US salad chain draws tech investors' dollars

New York

WHY is a venture-capital firm led by online pioneers backing a farm-to-table salad chain? That is the question some tech industry watchers asked themselves three weeks ago, after Sweetgreen, a fast-casual salad restaurant with outlets on the East Coast of the United States, announced that it had raised US$18.5 million in financing.

Individual investors in the company during this round included restaurant magnates Danny Meyer, Daniel Boulud and David Chang, as well as Gary Hirshberg, chairman of yoghurt maker Stonyfield Farm. But most of the financing came from Revolution Growth, an investment firm started by Steve Case, a founder of AOL, and other former AOL executives.

Revolution Growth typically finances consumer-focused, technology-enabled companies that aim to disrupt established industries. In that context, the salad startup seemed a non sequitur. "It has surprised people because it was not a typical technology or venture investment," Mr Case said recently. But he says he believes Sweetgreen is tapping into a large, underserved market: wellness-minded consumers who want to eat healthier food in casual settings with quick service. "There's clearly a revolution in food unde…