• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees

1

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

2

Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers

3

Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees

Meet the LGBT-Owned Food Startup That Just Landed $500,000 on West Texas Investors Club

By
Jared Lindzon
Jared Lindzon
Down Arrow Button Icon
By
Jared Lindzon
Jared Lindzon
Down Arrow Button Icon
July 15, 2016, 2:57 PM ET
Photograph courtesy of Hip Chick Farms

When Serafina Palandech and Jennifer Johnson first met the West Texas Investors Club, they felt worlds apart. When they left, they took an investment of half a million dollars home with them.

The married couple and co-owners of Hip Chick Farms appeared on the CNBC reality show on Tuesday night, pitching their ethically sourced organic frozen chicken products to self-made millionaires Mike “Rooster” McConaughey (brother of the Oscar-winning actor, Matthew) and Wayne “Butch” Gilliam.

They were nervous about it at first. “We couldn’t be more progressive, left, ‘California-y’ people, and they’re West Texas,” says Johnson.

When the women launched Hip Chick Farms in 2011, they knew the sort of odds they were up against. Nine out of 10 startups fail, and only 10% of startups with a female founder receive funding. Lesbian-owned companies appear to be at a particular disadvantage, with only 3% reaching revenues of more than $5 million, compared with 12% of companies owned by gay men, according to a new study by researchers at the Chicago Booth School of Business.

Hip Chick Farms makes organic frozen chicken.Photograph courtesy of Hip Chicks Farm

“We’re rewriting lesbian–owned company history here,” says Johnson, adding that the journey has not been entirely free of prejudice. “As a lesbian company we have been discriminated against; a distributor chose not to sell our products because we’re lesbians,” says Palandech.

Related: Matthew McConaughey’s Brother Just Gave Some Brutally Honest Business Advice

In spite of the challenges, Hip Chick Farms just closed a $2 million Series A investment round with Advantage Capital Partners, landed a major contract with the Orinda Union School District in California and, in October, Johnson will have the honor of preparing a meal at the White House for president Obama and his staff (it won’t be her first time; she’s done it before). Johnson and Palandech were also recognized on Fortune’s most innovative women in food and drink in 2015.

The couple has been married for seven years, and launched Hip Chick Farms in 2013 after buying a farm in Sebastopol, California, approximately an hour and a half north of San Francisco. Palandech, an entrepreneur who runs the day-to-day business operations, along with Johnson, an executive chef for billionaire Gordon Getty, originally set out to make ethically sourced, healthy recipes for their daughter, Rubyrose.

But the couple would quickly learn that making organic, free range frozen chicken nuggets, wings and meatballs on a large scale was much more difficult and expensive than anticipated.

“We want every kid in America to have access to the best clean food, but what we’re doing is not cheap; it’s difficult, and it’s expensive, and it’s artisan,” says Palandech. “When we started we were making batches of 100 pounds, now we make batches of 40,000 pounds. There’s a huge difference in the economies of scale and the costing that goes along with that.”

 

The couple has pursued every source of funding available in order to keep their business afloat. They have literally bet the farm, twice, with second mortgages, raised capital from friends and family and earned $25,000 with a Kickstarter campaign. They have also secured a series of micro loans and even took advantage of Whole Foods Market’s Local Producer Loan program, available to the grocery giant’s suppliers.

“I don’t think either of us had any idea how much capital it would take to launch our business,” says Palandech. “There are so many unexpected costs, as well as startup costs and basic cash-flow.”

Palandech says she has taken advantage of every opportunity that presents itself to the company, but when she received an email from the West Texas Investors Club inviting them on the show, Johnson had her doubts.

“It just seemed like I was going to be really out of my comfort zone, and Serafina tends to really push me into areas where I’m not comfortable but in the end I’m really glad I did it,” she says.

Related: This Is What Happens When a Pregnant Economist Researches Pregnancy Advice

Johnson and Palandech, however, say they clicked with hosts Rooster and Butch almost immediately, but not over their mutual appreciation for agriculture and poultry.

“Regardless of whether you’re a lesbian couple from Northern California or a traditional family from Midland-Texas, everyone wants the best for their kids,” says Palandech. “That was the common language that we all spoke. It was all about love for our kids, and wanting them to be healthy and make good choices.”

The new $500,000 investment, along with the $2 million raise, will help grow the business, fund infrastructure upgrades, marketing efforts and additional staffing, they say. In spite of their achievements, neither entrepreneur will take credit, with each citing the other as the company’s strongest ingredient.

“It’s taught me a lot, working with my wife, seeing how strong she is and how she blisters through when everyone’s closing the door in her face constantly, and it still won’t take her down. That’s the heart of an entrepreneur,” says Johnson.

About the Author
By Jared Lindzon
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

U.S. debt is the ‘elephant in the room’ amid bond market rout as Fed-fueled interest costs could drive even larger deficits, analysts warn
EconomyDebt
U.S. debt is the ‘elephant in the room’ amid bond market rout as Fed-fueled interest costs could drive even larger deficits, analysts warn
By Jason MaMay 23, 2026
19 minutes ago
Iran and U.S. near agreement on memorandum of understanding to end war, as Tehran says Hormuz is included in talks but nuclear issues are not
PoliticsIran
Iran and U.S. near agreement on memorandum of understanding to end war, as Tehran says Hormuz is included in talks but nuclear issues are not
By Munir Ahmed, Matthew Lee and The Associated PressMay 23, 2026
2 hours ago
The Fed’s worst inflation fears may be coming true as consumers lose faith in long-term prices—and even Trump supporters doubt he can bring relief
EconomyInflation
The Fed’s worst inflation fears may be coming true as consumers lose faith in long-term prices—and even Trump supporters doubt he can bring relief
By Jason MaMay 23, 2026
3 hours ago
gf
SuccessEntrepreneurship
Meet the 32-year-old who is America’s only full-time spelling bee coach — he charges up to $180 per hour
By Ben Nuckols and The Associated PressMay 23, 2026
4 hours ago
o
PoliticsOregon
Oregon Democrats wrote a gas tax, watched it get destroyed and now Jeff Merkley has a fight
By Claire Rush and The Associated PressMay 23, 2026
4 hours ago
t
North AmericaMedia
‘Hello, Goodbye’: Paul McCartney closed the lights on a Late Show that CBS couldn’t cancel quietly
By Mark Kennedy and The Associated PressMay 23, 2026
4 hours ago

Most Popular

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
2 days ago
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
Success
Indeed chief economist says we’re entering an era of ‘great mismatch’ thanks to a generational imbalance of workers
By Emma BurleighMay 22, 2026
1 day ago
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
AI
Microsoft reports are exposing AI's real cost problem: Using the tech is more expensive than paying human employees
By Jake AngeloMay 22, 2026
1 day ago
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
Success
Apple’s Steve Wozniak says he cofounded the tech giant after 5 rejections from HP—not to ‘make money.’ For years, his paycheck was just $50
By Preston ForeMay 22, 2026
1 day ago
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
Workplace Culture
Bolt CEO says he let go of his entire HR team for creating problems that didn’t exist: ‘Those problems disappeared when I let them go’ 
By Preston ForeMay 19, 2026
4 days ago
Current price of oil as of May 22, 2026
Personal Finance
Current price of oil as of May 22, 2026
By Joseph HostetlerMay 22, 2026
1 day ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.