The Food Revolution Group has lost its original cornerstone investor and gained two institutions.

Venture capitalists The Victorian Clean Technology Fund sold down 40 million shares in the company for $2.16 million, going from 15.3 per cent of the register to 5.7 per cent.

Fund managers Perpetual and SG Hiscock picked up a “cornerstone stake”, although neither are substantial shareholders.

The entrance of institutional investors into a small cap’s register is big news, as it provides validation that the company is big enough and growing well enough to spark the interest of large money managers.

The Vic Clean Tech Fund is an early stage investor and funds seed and pre-seed capital raisings. Seed capital is an equity investment in a startup company.

Food Revolution Group (ASX:FOD) is now a $38 million company with a share price that’s risen 64 per cent in the last 12 months — mainly after a surge in August when it revealed its first deal to get into China.

The second came this week when it sold up to half of the business to a Sydney investor and some unnamed sophisticated investors.

“The growing interest in our company reflects the traction we are gaining and not only validates our strategy but also brings stability at a time where we are poised to enter the Chinese market and rapidly accelerate sales growth,” said chairman Bill Nikolovski.

Food Revolution Group shares over the last six months.