Building a Business Worth Investing In — and a Life Worth Living

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Most entrepreneurs dream of the “five-year sprint” — taking a business from zero to $100 million in record time. But as my guest on today’s episode proves, the path to lasting success in CPG often looks a lot different.

Mike Fata co-founded Manitoba Harvest Hemp Foods in 1998, grew it into a nine-figure brand over two decades, and sold it for $419 million in 2019. He’s since gone on to lead multiple ventures, invest in and advise a portfolio of high-growth companies, and complete two more nine-figure exits.

Beyond the headlines, Mike’s story is about sustainable growth, operational discipline, and the personal health practices that allow founders to play the long game.

From Rock Bottom to a $100M Brand

Mike’s journey into entrepreneurship started with a personal transformation. At 18 years old, he weighed 300 pounds, felt mentally and emotionally drained, and decided to turn his life around. Over two and a half years, he lost 100 pounds, developed a deep interest in natural health, and began weight training, meditation, and mindful eating.

That foundation of wellness later became central to how he built and ran Manitoba Harvest — not just as a CPG company, but as a leader in the organic and natural foods space.

“To be your best and perform at a high level, you have to treat yourself like an athlete. Sleep well, eat well, train, and keep your mind sharp.”

The Reality of Growth: 20-Year “Overnight” Success

While many entrepreneurs chase quick exits, Mike advocates for building a “little engine that could” — refining operations year over year, maintaining capital efficiency, and growing in a low-risk, durable way.

At Manitoba Harvest, the company added roughly $10 million in sales annually for a decade, going from $10M to $100M in ten years. The pace was steady but relentless, and the problems didn’t disappear at higher revenue levels — they just evolved.

Why Mike Became an Investor

After exiting Manitoba Harvest, Mike wanted to stay in the game without taking on the daily grind of operating. His solution: invest in and advise founders at the Series A stage — typically $5–10 million in revenue — and help them scale to $50–100 million.

But he only invests in:

• Products he personally uses and loves

• Founders he wants to spend time with

Mike’s portfolio includes Nuts For Cheese, Mid-Day Squares, and several other high-growth brands.

Fundraising Lessons From Both Sides of the Table

Mike has raised capital as a founder and now deploys it as an investor. Here are some of his most important takeaways:

1. Valuation Reality Check

• In today’s investor’s market, most CPG brands at the venture stage see valuations between 1–2.5x net revenue — not gross revenue.

• Be clear and honest: always speak in net revenue terms and use industry-standard gross margin calculations.

2. Beware of Term Sheet Traps

• Preferred shares can come with liquidation preferences, accruing dividends, and governance controls that impact your future payout.

• Don’t fixate solely on valuation — understand the true cost of capital.

3. Run a Tight Process

• Avoid open-ended fundraising timelines. Create urgency by structuring a 10–12 week process with defined stages for teaser decks, management calls, and data room access.

• Investors respond to tension in a deal — not vagueness.

The Power of Relationships

Some of Mike’s best deals came from relationships built long before funding conversations. He often meets founders at trade shows or through shared networks, offers help, and invests only after developing genuine rapport.

Playing the Long Game

Mike’s approach is grounded in health, governance, and sustainable scaling. He believes founders should build businesses they could “do forever,” even if the ultimate plan is an exit.

“If you just grow a good business — a world-class company — the exit opportunities will come.”

About Mike Fata

Mike Fata is the co-founder of Manitoba Harvest Hemp Foods, which he grew into a $100M+ brand before selling it for $419M in 2019.

He has since completed two additional nine-figure exits, authored the best-selling book Grow: 12 Unconventional Lessons for Becoming an Unstoppable Entrepreneur, and hosts the Founder to Mentor podcast. Today, Mike invests in and advises a portfolio of natural product companies, serves as Chairman of Nuts For Cheese, and runs Fata & Associates.

Connect with Mike: LinkedIn | Instagram | mikefata.ca

Listen to the full episode for more from Mike on:

• How to protect your health while scaling fast

• The right way to structure your cap table for long-term success

• Why building for 30 years will get you better results than chasing a 3-year exit