Graze.com backed by Lovefilm investors

Healthy snack company Graze.com has raised £2 million from two of the venture capital backers of DVD rental business Lovefilm.

Octopus Ventures and DFJ Esprit invested in Graze.com six months after the launch of its service, whereby healthy snacks such as fruit, nuts and seeds are delivered to office workers. The service has 15,000 subscribers who pay £2.99 per box.

As part of the deal, William Reeve, co-founder of Lovefilm, has been appointed non-executive chairman of Graze.com.

Says Reeve, ‘The combination of Octopus’ private investor group and DFJ Esprit’s global network offers a pool of relevant experience that is already proving invaluable to the team.’

Octopus investment manager Alliot Cole led the transaction on behalf of the firm, with DFJ Esprit partner Nic Brisbourne in the corresponding role. John Finnemore, an associate at law firm Shoosmiths, advised Octopus on the deal.