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 growth in curiosity in wholesome meals and diet to enhance folks’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 observe to achieve a mixed income of over €350M in 2021, it says. One such firm, Air Up, has hit a €100M income run price in lower than two years, says 5 Seasons. Air-Up sells a reusable good water bottle that “delivers taste through retro-nasal scent”.
Ivan Farneti, Co-founding Associate of 5 Seasons Ventures, mentioned: “There’s little question that FoodTech is experiencing a growth in Europe proper now. Once we launched 5 Seasons in 2018, we have been the primary VC to concentrate on FoodTech in Europe, and we consider we contributed to creating this a horny asset class. Fund II was shortly oversubscribed as extra traders needed to get uncovered to European FoodTech, in search of excessive progress and affect.”
5 seasons has additionally backed Butternut Field, a direct-to-consumer recent pet food firm in Europe, and ‘This’, plant-based meat different. The VC’s workforce has additionally grown to 9, with the appointment of a Head of Impression and Sustainable Investing.
Fund II has to this point invested in feminine wellness dietary supplements her1, and vly, an organization utilizing peas to offer a plant-based milk different stuffed with 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 Associate of 5 Seasons Ventures, added: “Should you have 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 Impression aspect,” he mentioned. “Two of probably the most urgent points the world is going through at the moment are human well being and local weather change. And that’s precisely the form of corporations we search for. Should you look throughout our portfolio, for instance, final 12 months 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.”