Cleveland Avenue Research
Investment Thesis
Cleveland Avenue is a globally-minded venture capital firm founded in 2015 by Don and Liz Thompson, co-founders who bring significant operational expertise and entrepreneurial experience. The firm invests in lifestyle consumer brands and technology companies that positively disrupt large and growing markets. Their thesis centers on identifying market opportunities where consumer preferences are evolving and where the right combination of product innovation, operational excellence, and strategic partnerships can create transformative value.
The firm believes that great investments require more than capital—they require deep industry expertise, hands-on operational support, and access to a carefully cultivated network of strategic partners and category leaders. Cleveland Avenue takes a fundamentally active approach to investment, positioning itself as a true operating partner alongside its founders.
Stage and Check Size
Cleveland Avenue is a flexible investor across multiple stages:
- Pre-Seed through early Growth Stage
- Check sizes range from $1M to $50M+ for larger follow-ons
- Focus on companies with proven traction or exceptional teams
- Willingness to lead or participate in rounds
- Strong reserve capacity for follow-on investments
Geographic Focus
- Primary: United States (Midwest-centric with particular strength in Chicago)
- Secondary: Selective global exposure, particularly for food and beverage brands with scalable models
- Headquarters: Chicago, IL (222 N. Canal St, Chicago, IL 60606)
Sector Focus
Cleveland Avenue maintains a diversified portfolio across multiple lifestyle and technology-enabled consumer sectors:
Food & Beverage (40-45% of portfolio)
- Alternative proteins and plant-based foods (Beyond Meat, NotCo, Good Planet Foods)
- Ready-to-drink beverages and spirits (Bartesian, Bhakti, Gin & Juice, Kurvball, Somrus)
- Specialty food and health-conscious brands (Partake Foods, Hero, Every Body Eat, Nuritas)
- Food service and restaurant technology (Bear Robotics, FoodBoss, PreciTaste, 86 Repairs, Craftable)
- Coffee and tea (Red Bay Coffee, Bhakti)
AgriTech & Sustainability (20-25% of portfolio)
- Agricultural technology and precision farming (Aigen, Intelligent Growth Solutions, Verdant Robotics)
- Supply chain optimization (Evigence, CH4 Global, Plant Grow Harvest)
- Sustainable materials and packaging (Footprint, Open Water)
- Vertical farming and controlled environment agriculture
Consumer Goods & Lifestyle (15-20% of portfolio)
- Fashion and apparel (Flipper's, Listener Brands/CurlMix)
- Direct-to-consumer platforms and marketplaces (Full Glass Wine, BabyQuip, Unreal Estate)
- Event and experience platforms (EventNoire, Beatclub)
- Real estate and services (LiftUp Enterprises, ZenBusiness)
Software & Technology (10-15% of portfolio)
- AI and robotics (Soul Machines, NeuReality, Bear Robotics, Tackle AI)
- Enterprise SaaS (CLARA, Innovare, Gray Matter Analytics, Firebolt, Five to Nine)
- Creator and entertainment platforms (Bemyfriends, Believer)
- Specialized vertical solutions (Craftable for restaurants, Paladin for legal services)
Healthcare & Lifestyles of Health & Sustainability (LOHAS)
- Digital health platforms (CancerIQ)
- Health-focused consumer brands
- Sustainable and ethical business models
Recent Activity & Fund Status
Cleveland Avenue has been actively deploying capital across its fund vehicles:
- Most recent activity: Continuous portfolio company support and follow-on investments through 2025
- Fund status: Actively deploying across multiple fund vehicles with strong reserve capacity
- Investment pace: Regular deal flow, estimated 8-15 investments per year based on portfolio size
- Co-investment relationships: Works frequently with top-tier venture firms and strategic corporate investors
Investment Approach & Value Add
Cleveland Avenue differentiates itself through hands-on operational support:
Active Investment Strategy
- Board representation standard for significant investments
- Multiple partner engagement across functional areas
- Strategic advisory relationship model emphasizing founder support
Proprietary Operating Capabilities
Innovation Facility (33,000 sq ft)
- State-of-the-art test kitchens, mixology lab, and showcase restaurant
- Consumer research capabilities leveraging neuroscience technology
- Product development and concept testing environments
- Event hosting and portfolio company showcases
Functional Expertise Areas
- Marketing and brand building (global experience with consumer brands)
- Supply chain optimization (deep expertise from McDonald's and supply chain network)
- Financial management and FP&A (CFO-level expertise)
- Operations and organizational scaling (decades of operational experience)
- Product innovation and consumer research (culinary expertise, test facilities)
- Business strategy and market expansion
Team & Leadership
Founders & Leadership
- Don Thompson (CEO & Co-Founder): Former President & CEO of McDonald's with 25+ years at the company; electrical engineering background; globally respected entrepreneur and thought leader
- Liz Thompson (Co-Founder): Non-profit founder and education/philanthropy leader; CEO of The Cleveland Avenue Foundation for Education; co-founder and operator
Investment Team
- Joseph Q. McCoy (President & General Counsel): 27+ years in business transactions and law; former COO (2021-2025); structured investment strategy
- Keith Kravcik (Chief Investment Officer): Former CFO of Ovation Brands and SUPERVALU; 16 years at McDonald's; leads portfolio company financial strategy
- Andrea Zopp (Portfolio Lead, Diversity & Inclusion): Former CEO World Business Chicago; former Deputy Mayor Chicago; invests in minority and women entrepreneurs (CAST US Fund)
- Mingu Lee (Managing Partner, CA Tech Fund): Leads AI, robotics, and digital experience investments; former CTO Lockheed Martin; PhD systems engineering
- Randall Lewis (Portfolio, AgriTech): 35+ years in finance and operations; leads agricultural technology investments and CAST US Fund
- Harry Coaxum (Operations): 20+ years executive leadership; founded restaurant concept; expertise in franchising and operations
Support Functions
- Ryan Tlusty (CFO): 15+ years finance; former roles at Tyson Foods and Smithfield Foods; CPA
- Lisa Merchant (Chief Human Resources Officer): Former VP Human Capital at UnitedHealth Group; founder of consulting firm; leads EDLI
Decision Process & Timeline
- Process: Partnership-based with significant founder input; not committee-driven
- Decision timeline: Variable depending on stage and complexity; estimated 4-8 weeks from first meeting to term sheet for established founders
- Lead vs. follow: Leads most Seed stage and later investments
- Warm introductions: Strongly preferred through network or existing portfolio companies
Notable Portfolio Exits & Successes
Recent Exits:
- Hollow Games (acquired by Take-Two, 2024)
- BuildKite (acquired by Atlassian, 2024)
- LogStream (acquired by Datadog, 2023)
High-Profile Holdings:
- Footprint: Sustainable packaging unicorn; largest CA investment with $5B+ valuation
- Beyond Meat (exited): One of first plant-based meat IPOs
- Velocity Studios: 25M+ downloads on mobile
Competitive Advantages
- Operational Playbook: Proven ability to scale businesses from McDonald's experience
- Functional Expertise: In-house teams across marketing, supply chain, operations, and product development
- Innovation Facility: Unique 33,000 sq ft facility with test kitchens and consumer research
- Network Scale: Direct relationships with category leaders and retail partners
- Chicago Base: Strong regional anchor enabling operational support
- Founder-First Mentality: Philosophy of supporting founder well-being and long-term success
Foundation & Philanthropy
Cleveland Avenue operates alongside The Cleveland Avenue Foundation for Education (The CAFE Group) with focus on supporting Leaders of Color and education initiatives.
