[00:00:10] Ray Latif: Hello, friends. I'm Ray Latif, and you're listening to the number one podcast for anyone building a business in food or beverage, Taste Radio. In this episode, we sit down with Gabriela Morales, the Co-Founder Managing partner of Ignite 20. Ignite 20 isn't just cutting checks. The new $7 million venture capital fund and hybrid accelerator is lighting a fire under the next wave of CPG innovators. Launched in February of 2025, Ignite20 was born out of the Redwood Ventures Group and is also backed by early-stage VC firm Santatera Capital and food distributor RPM Food. Over the next three years, the fund will invest in 60 early-stage startups across the health, beauty, food, beverage, and pet care industries, targeting 20 promising brands per year. Each selected company will receive a $50,000 capital investment, along with hands-on support from a network of operators, investors, and retail buyers. Through tactical mentorship, operational strategy, and founder-focused development, the program is designed to help brands grow sustainably and strategically. In this episode, we sit down with Gabriela Morales, Ignite 20's Co-Founder Managing director, who shares how the fund is rethinking early-stage investing, the reason why margins matter more than price point, how categories like functional snacks and high-protein foods are redefining innovation, and the value of the 30-second video pitch. Hey folks, it's Ray with Taste Radio. Right now I am honored to be sitting down with Gabriela Morales, who is the managing partner of Ignite20. Gabriela, great to see you.
[00:01:57] Gabriela Morales: Hello, thank you. Thank you for having me here.
[00:01:59] Ray Latif: Yeah, we are here in Anaheim for Natural Products Expo West 2025. You told me before we hopped in the mic, this is your first Expo West.
[00:02:07] Gabriela Morales: Yes, yes. And I'm so excited. Just like a few minutes ago, I just walked a little bit. I mean, it's not open yet, let's say. But yes, I'm like so excited. I can't wait.
[00:02:16] Ray Latif: Yeah. You're not ready, I don't think, to see about 80,000 people in three major halls. But yeah, it's an experience for sure.
[00:02:24] Gabriela Morales: Yes. And I'm ready for it. This is what everyone had told me. Anything you imagine, it's like 10 times that.
[00:02:31] Ray Latif: That is a very good explanation of what Expo West is like for a first timer. You've been in this business, that of CPG, for some time, and when I heard about Ignite 20, I said to myself, I need to talk to Gabriela because this is a fund that a lot of people would be interested in, a lot of people want to hear about, and hence, we are sitting down here in the press room at Expo West. Talk a bit about your background in the industry and the origins of Ignite 20.
[00:02:57] Gabriela Morales: Okay. Yeah. So actually, I'm a nutritionist. So it's been a long time. I've been very interested in the wellness space. And yeah, I'm a former founder. So I first started with a healthy food restaurant back in Mexico. And this is where I had the first experience with the CPG industry, let's say, with cold produce, superfoods, and so on. And looking forward a few years ago, then Redwood Ventures, which is a group of different funds from Mexico as well, started Santatera Capital. So this is how the stories are going to align.
[00:03:37] Ray Latif: And Santatera Capital, they've invested in a bunch of brands that folks might be familiar with, including
[00:03:43] Gabriela Morales: Yes, exactly. Like, for example, High Yield, Little Sesame, Wild Wonder, Mescla. One of our later investment is Refresh Gum, for example. So yes, but actually Santatera is investing in later stages like Series A plus Leading Rounds. But throughout these years at Santatera, we have realized that they were like some amazing founders, but they were not there yet. Let's say it's just a matter of time, but they are like very cool startups. So we say, hey, why don't we start like a new fund, like the newest fund, leveraging all of the experience, the network and everything that we already know from Santa Terra, but for early stage, because there are not so many funds for early stage. But of course, even me being a former founder, we know how hard this when you start, you don't have the network, you don't know anything. And of course, you make a lot of mistakes. It's hard. But what if someone can help you and introduce you to the right people and just like get a little bit of a guidance? Right. And of course, it's even more if they can trust your product and your company to a level that they put money in it. So we really are going to have a skin in the game, as we often say. And yeah, I mean, this is kind of like that. Let's say like that first. like the first step, because later, of course, we are going to look. Some of these amazing founders that we are going to look for can also, when they grow to series A and plus, be invested by Santa Terra. Right. So this is like like kind of closing the loop in the industry where we really want to help founders and grow great companies.
[00:05:26] Ray Latif: What really interested me about what I heard about Ignite 20 is that it's not one or two businesses that you're looking to invest in. It's a lot of them. It's about 50 plus, if I'm not mistaken, which is amazing because when I think about incubators and I think about early stage financiers, it's sort of one here, one there, but you're working with or plan to work with a broad range of companies. How do you evaluate which companies to invest in? What is the criteria for investment?
[00:05:59] Gabriela Morales: I will answer this question in two parts. The first one is the criteria in paper, let's say, is within that they need to be in the industry of health, wellness, food and beverage, pet and beauty. So you first need to be in one of these five categories, better for you or have a healthy ingredient or so, and be early stage. What does it mean early stage? from $100,000 to $1 million. In revenue? Yes, in revenue. Yes, this is our sweet spot. So this is the in-paper, let's say, part. But the other one is, as we are in the early stage, let's say there is a component that is really important, which is the founders. So we really are looking for an engaged team, like a hustler team, right? Because at the end of the day, start a business. It's like really hard. You need to be really resilient. And we really want to look for these people that will have this fire in the belly that they really want to sell something through a product and go for it. And we really want to help them there. So so this is like the like in theory, but also we are looking for the right people.
[00:07:17] Ray Latif: Certainly the founder is an important component, perhaps the most important component to a brand's potential success. But solving the problem, as you pointed out, finding a problem that you can solve with a product or a brand isn't necessarily the easiest thing to do. People have been trying to do it forever. And yes, sometimes there is white space. Sometimes there is a true problem that can be solved by a new innovative brand. But how do you define white space? How do you identify whether or not a problem is truly there to be solved?
[00:07:48] Gabriela Morales: Okay, it depends. What a great question. It depends also in the, let's say, in the industry that they are in it. For example, we have realized that we care more and more about health, right? So I'm just mentioning one example. So there are a lot of people, a lot of brands like building like high protein. So let's say high protein, it's a tendency, right? So we are looking for tendency and trends because it makes sense. because the more you age, and this is where I'm going to be a little bit of my nutritionist side. So the more you age, the less protein you will have. And there is correlation between how many percentage of muscle you have in your body on on how early you develop a certain illness that you will maybe have in your genes, right? So this is a trend that is going on, but it makes sense, right? So if there is like two bars or two, I don't know, like coffees or whatever, And one has highest protein and is going there. And the other one is just like less sugar or something. OK, so we're going to go to that trend because there's also a side of business in that sense. So the people, they will have more success if you are going to a market which is growing. So this is also very important to go on that wave that will be there.
[00:09:10] Ray Latif: So it sounds like functionality is critical to your investment strategy.
[00:09:14] Gabriela Morales: Yes. Yes, exactly. One hundred percent.
[00:09:19] Ray Latif: So I was reading just back to the number of companies you're investing in. The goal is to invest in 60, if I'm not mistaken, companies over a three year period, 20 each year and giving $50,000 to each brand or each business as a startup, as some startup money.
[00:09:34] Gabriela Morales: Yes, exactly. Yes, we're looking into that. But actually, there might be some, let's say, kind of surprises that I cannot reveal yet, but they can be a little bit more in that sense. A little bit more money. Yes, those numbers can just slightly change. But yes, of course, because we're really seeing potential in this project. So yes.
[00:09:57] Ray Latif: I've always advocated for funds, whatever size they are, in corporations, venture capital arms, to invest smaller amounts in a larger number of companies. Sometimes I think that's like you're shooting darts at a dartboard and hoping one of them hits. But is that part of your thesis here? Is that, yes, we're going to invest in a bunch of companies. Some of them may not make it, but we're hoping that a percentage of them might actually build successful brands. Is that kind of the mindset here?
[00:10:24] Gabriela Morales: Yes. Yes. One hundred percent. Like let's say in the in the vision of an investment side. Yes. This is more strategic in that sense, because if you see the stats, so if you have more investments and and even if it's a smaller side, let's say there is more probability like five or ten from them will will rise. And this is why we are there for. So if we do things right and we help them, from pricing strategies, from commands, from, I mean, all of these tactics themselves, and of course with money, you know, so we see like, hey, we're decreasing the risk in that sense. So yes, it's really strategic in that sense.
[00:11:14] Ray Latif: Value-added investment is something that funds and financiers always talk about. Oh, we're bringing something else more than just money. But in the case of Ignite 20, you are truly a value-added investor in that there's more than just the initial investment. Talk about what else you're bringing to the table for brands that you're investing in.
[00:11:31] Gabriela Morales: Yes, 100 percent. And actually, this is, to be honest, this is just replicating what we have been doing at Redwood as a group. For example, Santa Terra, we have some in the funds where how it typically works, what the funds have investors. Call it LPs or limited partners. And just to mention, some of our limited partners are already helping our brands in Santa Terra, right? Because we are from the same industry, so we really want to make connections beyond the money. So yes, it's already happening in Santa Terra. This will not be deceptive in 9.20.
[00:12:10] Ray Latif: How do brands put the best foot forward? How do they apply in a way that is going to attract your attention, get you interested, get you wanting to get in touch with their founders?
[00:12:23] Gabriela Morales: OK, so I love this question and actually something that I have, I have to say that it has worked for me in the past as a founder and I have seen just one startup that made it. It's like sending an email, but with a video, right? With a video, just like 20 seconds recorded like, hey, my name is Gabriela. I'm the founder of Ignite and my product is this and this. But because it's like it's like creating like a TikTok if you want to. But it's why TikTok had became like, of course, the algorithm and so on. But it's also because our human brain gaps more when it's visualizing, right, rather than reading. So it is also very important, for example, when you get to try or make an intro to an investor, how you do it. It's just not your product, it's also how you do it, right? So for example, just sending an email, my email is Gabriella at ignite20.com. I will be very happy to receive a lot of videos, for example, just recording. It doesn't have to be really like professional, just with your phone, you know, just like, hey, my name is this and this is my company. This is like how we've been growing and we are our target for this year is so and so. So this is just like 20, 30 seconds. But you, one, you stand out from the crowd, you know. Second, you give a little bit of a sneak peek so you get attention from the potential investor. And third, let's say you as an investor, you kind of read the energy and the enthusiasm in just like seeing a person, right? So for example, this is a good way that you can like get the attention of someone. And for example, this one, this is another thing that we are going to have at Ignite. We are focusing on distribution on like a crash course of CPGs, but also we are really focusing on we're calling it founder one on one, how to be a better founder, how to be a better leader, how to address investors, because there are some soft skills that sometimes we need to know. Right. And we we don't know what we don't know. And being in the other side now as an investor, you can like, hey, do this and this will work better. Like don't write a 10 lines paragraph, just like two lines. Very concise. It's not on you. But sometimes people doesn't have a lot of time just send a video and so on. So
[00:14:58] Ray Latif: Just wet the palette, get the matrices.
[00:15:00] Gabriela Morales: Exactly, exactly. So, for example, if they want to start like reaching out, which I will be very happy, just like send a video. Right. And just like that. And this is one of the things that we really want to have the founders to.
[00:15:14] Ray Latif: That is so refreshing to hear that you want people to email you. Gabriella at ignite20.com. I'd love to. Okay, there you go. Well, hopefully you're going to be hearing from a lot of folks. There you go.
[00:15:23] Gabriela Morales: Retail, please.
[00:15:25] Ray Latif: Now again, there's another application process beyond that as well.
[00:15:28] Gabriela Morales: Yes, of course.
[00:15:29] Ray Latif: But I think in that initial email, in that application as well, realism is really important. A lot of times I will see an initial pitch and the founder will be talking about the market potential. Certainly, early stage angel investors want to hear about how big the brand could potentially be. But if you start out by saying, hey, we're going to take a big piece of this $3 billion X category, I tune out. I'm not an investor, but I end up tuning out. Is that something that kind of doesn't work for you either?
[00:16:01] Gabriela Morales: Yes. Yes, because I mean, I would say it's important to mention it. But for example, one thing that I I've already had like a few, a few interviews with some founders, but sometimes I've seen they take like three, four slides just talking about that, about the market. You know, it's like, like, yeah, that yes, this is a huge opportunity. But I want to I want to know about you. Like, why will you stand out? You know, so yes, 100 percent. Exactly.
[00:16:33] Ray Latif: I know you are looking at a lot of categories. I know that you're looking at a lot of interesting ingredients that can help brands stand out. But I'd love to get your perspective on specific categories, perhaps specific ingredients, if I may, and just get a general sense of how you feel about them, if I may.
[00:16:51] Gabriela Morales: Oh, yes, of course.
[00:16:53] Ray Latif: I'll ask and let's see how, let's see how you respond. So I've heard, this is interesting because I've heard mixed feelings on this particular category, even though it is one of growth, which is better for you soda.
[00:17:05] Gabriela Morales: Oh, okay. Yes.
[00:17:06] Ray Latif: How do you feel about better for you soda?
[00:17:08] Gabriela Morales: OK, so let's say, I mean, this is just my my humble opinion, but sometimes when everyone hears about a specific category, it's maybe because it's kind of too late. You know what I mean? So it's better to start when it's rising. Let's say one ingredient, I mean it's not an ingredient, but it's like a pre-hormone precursor, but like GLP-1, right? It's more of the rice than Better4U soda. So, because Better4U soda is so established, even at Walmart, you already have that, like a soda, modern soda shelf. You have all of these amazing brands, right? And there are coming, there are coming more brands, but it's, let's say we don't want to, for example, at Santa Clara, we already have One example, we have Hayo, which is an amazing brand, right? But they have started like a few years, a few years back. So if you are just starting or thinking about starting, it's maybe too late. I mean, just take it. We say it in Spanish, in Mexico, like with a grain of salt. So just take it. My advice is a grain of salt. You know, I'm not meaning don't start a healthy soda brand.
[00:18:30] Ray Latif: No, I think you make a really good point here, which is that maybe it is a little too late to think that you are going to be able to compete with some of the brands that are already established out there, unless you have significant financial capital or a strategic partner that can help you scale quickly. Adaptogens, we've seen adaptogens incorporated into all kinds of food and beverages. I think there's still a misunderstanding or a lack of education among most Americans about what adaptogens are, what they do. How do you feel about adaptogens just in a general sense?
[00:19:04] Gabriela Morales: Yeah, I agree with you. There's like, let's say like a cloudy, let's say. Yeah, we don't really know how to categorize this. So sometimes it's like, hey, they can like energize you. Hey, they can help you sleep. Hey, they can, I don't know, like, like help you get less anxious. So, yes, I just would be very specific. I mean, if you as a founder, if you want to go into this category, I would start just like in a very niche market, for example. So, hey, helping to decrease depression to Gen Z, to teenagers. Right. So this is very niche specific with this one or two ingredients. It's just not like, hey, like taking the same example, healthy soda with a lot of a lot of nootropics, you know, because it's like, hey, yes, but for who? So, for example, this is one of the masterclasses that we have, but this is in a sense of branding, right? It matters what your storytelling is. So, yeah, it's something to talk about it longer. For sure.
[00:20:17] Ray Latif: Another ingredient, I guess, category that a lot of folks have interest in are non-nutritive sweeteners. Things like stevia, monk fruit, erythritol. There's still a great amount of education that needs to be done among everyday Americans about why they should be consuming these things, and there's certainly a lot of information out there about why people should not be. How is, as an investor, as a potential advisor, would you talk to founders about incorporating those ingredients into their products?
[00:20:49] Gabriela Morales: Just going research, research a lot on past, present, but also future, you know, because it's like a few years ago, like, I don't know, like 10 years ago, one of the today's sweeteners that are like the worst were like the best, you know, so just like research, research a lot. And at the end of the day, we are, they are also a business. So it's, it's like more strategic if you add a sweetener that it's in the rice. You know, so it's a mix of having the great product, but also on being in the market, on the trend. I mean, this is also really important.
[00:21:28] Ray Latif: You mentioned protein earlier. It feels like protein isn't everything. You can find protein in beverages. You can find protein in snacks. You can find it in pasta nowadays. Is there a particular category where you think protein can have a breakout potential, can really help a brand differentiate itself within that specific category?
[00:21:46] Gabriela Morales: Yes, I would say two. It's snacks and like salty snacks. Yes, exactly. Yes, because we already have seen a lot of protein bars, a lot of protein beverage, like from many years ago. But right now, like, I don't know, like pretzels or like any other salty snacks is going to be more like in a trend.
[00:22:09] Ray Latif: The last thing I want to ask you about isn't necessarily a category or an ingredient. It's really about price. I see a lot of early stage concepts where, yes, the price is going to be high because they're not able to source ingredients at a broad scale. They're not able to get their costs of goods down to a place where they can get a price point that is, I guess, reasonable for everyday Americans at mainstream retailers. How does price influence or how does price point influence your perspective as an investor?
[00:22:44] Gabriela Morales: It is very important, but I will say more than price or let's say beyond pricing is margins.
[00:22:49] Ray Latif: Sure.
[00:22:49] Gabriela Morales: Because you can have like the best product at $1, which is like cheap. But if you have like 5% of margin, it doesn't work. But instead, if you have, let's say another startup that it's $2 price, which is like 100% X, like the difference, but it's having better margins that will be like in a perspective of an investor, right? That will be like not a no brainer. There's like more variables you take in account. But yeah, you will go for the for the one that has better margins. And of course, we understand at the beginning, you don't have the best margins because of how much you are producing. But for example, if you already have a plan to better your margins and reducing the cost, that will be something that we will look for it. So, yeah, answering to your question. Yes. Beyond pricing, that will be the margins.
[00:23:43] Ray Latif: Whenever someone talks about margins, they talk about profitability. Yeah, exactly. Profitability is certainly the buzzword of the last few years for investors. But if you're an early stage brand, you know, profitability. Sustainable growth. Yeah, sustainable growth. Is that the new term? Sustainable growth? Okay.
[00:23:58] Gabriela Morales: Sustainable growth after 2021.
[00:24:01] Ray Latif: I'm kidding. So 2025 is the year of sustainable growth. I get it. Okay. I'm kidding. Well, no, with profitability, velocity is really important as well. I think both those things, you have to have a long term perspective. But at what point does a founder need to think about one versus the other? At what point is velocity the most important factor in their building their businesses versus profitability?
[00:24:25] Gabriela Morales: All the time. I mean, yes, it's just like, it's like having too many balls on your court, you know, like when you are just playing pick a ball or paddle or, you know, like all this racket sports that everyone is playing right now. Me too. And yes, both are very important. So it's just like, Like trying to measure everything. So yes, I wouldn't, I don't want to say like one is something that you have to put more focus than the other one. Both.
[00:24:58] Ray Latif: Okay.
[00:24:59] Gabriela Morales: Yes.
[00:24:59] Ray Latif: It's difficult to be a founder. It is. It's difficult to try to figure your way through this industry. But it certainly helps when you have a good partner. like an Ignite 20. And I am so excited, as I mentioned at the top of our conversation, that you're in this business, that you're working with founders that need money even more. So they need help with scaling their businesses. They need that value add as well. Thank you so much, Gabriella, for sitting down and speaking with me today. I really feel like a lot of our listeners are going to get in touch with you and want to chat with you. And I really hope to see those folks as part of your portfolio in the years to come.
[00:25:37] Gabriela Morales: Yes, thank you. Thank you for having me here. I'm very happy. And yes, please, please reach out. Definitely.
[00:25:49] Ray Latif: That brings us to the end of this episode of Taste Radio. Thank you so much for listening. Taste Radio is a production of BevNET.com Incorporated. Our audio engineer for Taste Radio is Joe Cracci. Our technical director is Joshua Pratt, and our video editor is Ryan Galang. Our social marketing manager is Amanda Smerlinski, and our designer is Amanda Huang. Just a reminder, if you like what you hear on Taste Radio, please share the podcast with friends and colleagues. And of course, we would love it if you could review us on the Apple Podcasts app or your listening platform of choice. Check us out on Instagram. Our handle is BevNetTasteRadio. As always, for questions, comments, ideas for future podcasts, please send us an email to ask at Taste Radio.com. On behalf of the entire Taste Radio team, thank you for listening, and we'll talk to you next time. you
