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 shoppers have shifted to grocery supply. The trade 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 diet to enhance individuals’s immunity to COVID-19.
So it’s maybe comprehensible that European FoodTech VC 5 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 Sequence 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 impression.”
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 succeed in a mixed income of over €350M in 2021, it says. One such firm, Air Up, has hit a €100M income run fee 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 Associate 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 deal with FoodTech in Europe, and we imagine we contributed to creating this a beautiful asset class. Fund II was rapidly oversubscribed as extra buyers needed to get uncovered to European FoodTech, searching for excessive development and impression.”
5 seasons has additionally backed Butternut Field, a direct-to-consumer contemporary pet food firm in Europe, and ‘This’, plant-based meat various. The VC’s workforce has additionally grown to 9, with the appointment of a Head of Affect and Sustainable Investing.
Fund II has to date invested in feminine wellness dietary supplements her1, and vly, an organization utilizing peas to offer a plant-based milk various crammed with protein. It’s additionally invested in Barkyn and The Nu Firm.
In complete, 5 Seasons Ventures has backed 14 corporations throughout six European nations: Germany, France, Italy, Portugal, Switzerland, and the UK.
In an interview, Niccolo Manzoni, Co-founding Associate 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 essentially the most urgent points the world is going through at present are human well being and local weather change. And that’s precisely the form 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 not do in SaaS, for instance.”