FoodTech is booming in Europe and is rising exponentially. In 2020, €3 billion went into European FoodTech corporations (State of European Tech Report, March 2021), and the pandemic has accelerated demand as customers have shifted to grocery supply. The business has additionally been affected by the rise of direct-to-consumer meals manufacturers. Lastly, the pandemic created a increase in curiosity in wholesome meals and vitamin to enhance individuals’s immunity to COVID-19.
So it’s maybe comprehensible that European FoodTech VC Five Seasons Ventures has introduced the ultimate closing of €180 million second fund. Their first fund was €77 million, so this subsequent fund is a sizeable enchancment and displays what’s happening in Meals Tech.
The brand new Fund II will proceed making Collection A and B investments into European FoodTech corporations, with, says the corporate “an emphasis on fast-growing consumer-focused meals with a quantifiable environmental or social affect.”
5 Seasons says it’s aiming to show that FoodTech startups can develop as quick as ‘regular’ tech startups, with its Fund I portfolio on monitor to achieve a mixed income of over €350M in 2021, it says. One such firm, Air Up, has hit a €100M income run charge in lower than two years, says 5 Seasons. Air-Up sells a reusable sensible water bottle that “delivers taste by way of retro-nasal scent”.
Ivan Farneti, Co-founding Companion of 5 Seasons Ventures, mentioned: “There’s little question that FoodTech is experiencing a increase in Europe proper now. After we launched 5 Seasons in 2018, we had been the primary VC to concentrate on FoodTech in Europe, and we consider we contributed to creating this a lovely asset class. Fund II was shortly oversubscribed as extra buyers wished to get uncovered to European FoodTech, in search of excessive progress and affect.”
5 seasons has additionally backed Butternut Field, a direct-to-consumer contemporary pet food firm in Europe, and ‘This’, plant-based meat different. The VC’s crew has additionally grown to 9, with the appointment of a Head of Affect and Sustainable Investing.
Fund II has thus far invested in feminine wellness dietary supplements her1, and vly, an organization utilizing peas to supply a plant-based milk different full of protein. It’s additionally invested in Barkyn and The Nu Firm.
In complete, 5 Seasons Ventures has backed 14 corporations throughout six European international locations: Germany, France, Italy, Portugal, Switzerland, and the UK.
In an interview, Niccolo Manzoni, Co-founding Companion of 5 Seasons Ventures, added: “For those who take a look at the quantity of capital that has gone into FoodTech ventures within the final two years it’s grown from €1 billion to €3 billion simply in Europe, and it’s certain to proceed rising as a result of there are many corporations which have raised good cash and have grown actually quick.”
“Secondly, it additionally has the Affect facet,” he mentioned. “Two of probably the most urgent points the world is dealing with in the present day are human well being and local weather change. And that’s precisely the type of corporations we search for. For those who look throughout our portfolio, for instance, final yr we saved about 2 million kilograms of meals waste. The merchandise that our corporations promote are designed to enhance well being and properly being… There’s an enormous quantity of issues you are able to do in meals tech which you can’t do in SaaS, for instance.”
