Growing European food and agritech industry pulls in investment
Funding for the sector predicted to double to €2bn this year
Investment in European food and agritech start-ups is expected to more than double this year as corporate and generalist venture capital groups increased funding in what has been regarded as a niche market.
This year investment in the sector is expected to rise to €2.3bn from €1.1bn in 2018, Paris-based Five Seasons Ventures and Dealroom, an Amsterdam-based data provider on the technology industry, revealed.
European food and agritech investment in 2019 were led by a $575m late-stage round by Deliveroo, a €125m capital increase by Ynsect, a start-up that raises insects for pets and fish feed, as well as a $100m round by vertical farming group Infarm, Five Seasons Ventures, a food and agritech investor, found.
Niccolo Manzoni, partner at Five Seasons, said interest was rising in the nascent sector as exits, or sales of the companies, have increased while more entrepreneurs are entering the market, he added.
“We’re seeing a new generation of foodtech companies,” he said at the Future Food-tech conference in London.
In total valuation terms, start-ups delivering products direct to consumers are the top category in Europe, estimated at €4.5bn, while alternative proteins are at about €600m.
Multinationals have been behind recent exits in Europe, with Unilever buying Graze, a UK online retailer delivering natural food, for £150m in February and The Vegetarian Butcher in December. Mars bought sports German nutrition maker FoodSpring this year.