Earlier this month, GoodGuide, one of the first startups to rate products on health, social and environmental factors using a scientific, research-driven approach, was acquired by Underwriters Lab Environment (UL Environment). This acquisition brings it under the umbrella of a global company that, in part, helps manufactures create more environmentally-responsible products and customers to make more informed purchasing decisions.
The terms of the deal have not been disclosed but, according to GoodGuide, it will continue to operate “business as usual” and offer its free web and mobile apps. Prior to the acquisition, GoodGuide raised
a total of $9.2 million over $13 million from investors like New Enterprise Associates, Draper Fisher Jurveston and Physic Ventures.
“After multiple discussions between GoodGuide and Underwriters Lab, it became clear we had the same agenda – enabling people to make scientific decisions about the products they buy,” said Scot Case, Director of Market Development for UL Environment, in a Q&A with Sustainable Brands.
“GoodGuide has seen significant uptick in demand in the procurement space and feels their back end can serve as a tool for the broader set of UL customers,” said Dara O’Rourke, Co-Founder and CSO of GoodGuide, in the same interview.
Since, here at Food+Tech, we always have an eye on ways data is being used, want to also point out the GoodGuide API. It would allow for a company, e.g., Amazon, to incorporate the GoodGuide ratings system on its site and give customers more information about the social and environmental effects of the products they are buying. It’s a parallel to some food+tech startups that are helping customers make more informed decision in the grocery aisle, like Fooducate and NxtNutrio. And whether it’s t-shirts or cereal, greater transparency and more informed purchasing decisions can have a significant positive effect on our health and environment — another great use of technology and data.