Vital Farms

Vital Farms operated in the premium egg market. It was founded in 2007 by Matt O'Hayer, who predicted a growing market of consumers willing to pay a premium price for ethically produced foods, O'Hayer built a network of small family farms committed to strict environmental standards, ensuring humane treatment of the hens and ethical practices. The company's high quality and clever marketing led to significant growth.

O'Hayer based the organization on "Conscious Capitalism" as espoused by John Mackey and Professor Raj Sisodia. Under this model, the company sought to support the interests of diverse stakeholders — farmers, employees, customers, communities, and even the hens, as well as investors. To formalize its commitment to stakeholders, Vital Farms received certification as a B Corp and reincorporated as a Delaware Public Benefit Corporation.

Initially funded by O'Hayer's personal resources, the company had attracted private investors and impact funds aligned with its mission as it grew. In 2020, Vital Farms recognized the need for significant capital infusion to maintain its growth trajectory. As it looked to raise capital, O'Hayer and Vital Farms CEO Russell Diez-Conseco faced the challenge of balancing its stakeholder interests against the pressures from capital markets, where investor priorities often dominated, while maintaining its commitment to conscious capitalism values. Potential options included seeking additional impact investors or venture capital, taking on debt, or considering public market offerings. Given the benefits and challenges inherent in each option, what path was best for the company, its investors, its stakeholders, and its mission?