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The State of European Food Tech 2018
in partnership with
www.foodtech.vc
€169 billion €6.5 billion €1 billion
Combined value of global food tech venture capital invested in food tech 2018 estimated investment in ‘next
unicorns, of which in Europe since 2013 generation’ food tech companies
€30 billion €21 billion 63%
From 9 European companies, vs. Value created by first wave of Annual growth in investment in ‘next
€43B in the USA from 10 unicorns European food tech leaders gen’ since 2013, in 1,241 companies
Europe produced 9 unicorns in Food Delivery received nearly The ‘next generation’ of food
Food Tech, in the Food Delivery half of the €6.5 billion, but it tech entrepreneurs are focusing
segment in the past five years only disrupts ~1% of the food on the 99%, reinventing
retail market agriculture, food production
and consumption
2
Food tech has created 35 unicorns globally, with a combined value of
€169B, of which €30B from Europe
Production & Distribution &
Transformation Consumption
Agri-tech Consumer brands eCommerce Restaurant tech Delivery
Europe €30B
USA €43B
Asia €83B
Rest of
World
€13B
Source: Dealroom.co. Uber Eats excluded from €43 billion. 3
Food tech is clearly heating up: globally €42B in combined
transactions in 2018 so far, excluding IPOs
Global VC investment in food tech Global food M&A Global food tech IPOs
€ 49,5B
€ 14,3B € 29,4B
€ 27,3B
€ 12,2B
€ 9,5B
€ 6,9B
€ 3,0B € 9,1B
€ 3,8B € 2,2B € 3,2B
€ 1,9B – € 1,0B
2014 2015 2016 2017 2018E 2014 2015 2016 2017 2018 YTD 2014 2015 2016 2017 2018 YTD
Notable investment rounds Round Notable acquisitions Transaction Notable IPOs IPO
DoorDash (USA) $ 250M Growth Equity Ele.me (China) $ 3.0B acquisition Tilray (USA) $ 1.5B IPO
Food delivery across the US and Canada Aug 2018 Meal ordering services in China by Alibaba & Softbank Medical cannabis research and production July 2018
Instacart (USA) $ 150M Series E LevelUp (USA) $ 390M acquisition Meituan Dianping (China) $ 53B IPO
Groceries delivered at your home Apr 2018 A user-engagement platform by Grubhub Online retail including food delivery Sep 2018
Ele.me (China) $ 3.0B Growth Equity Cornershop App (USA) $ 225M acquisition Delivery Hero (Germany) € 4.4B IPO
Meal ordering services in China Aug 2018 On demand grocery delivery by Walmart Food ordering website Jun 2017
Indigo (USA) $ 250M Series E Chewy (USA) $ 3.4B acquisition Blue Apron (USA) € 3.0B IPO
Utilizing plant microbes to improve crops Sep 2018 Sells dog and cat food, treats, and supplies by Petsmart Food ingredients and recipes delivered Jun 2017
Deliveroo (UK) $ 385M Series F Whole Foods (USA) $ 13.7B acquisition HelloFresh (Germany) € 1.7B IPO
Delivering premium restaurant meals Sep 2017 America’s healthiest grocery store by Amazon Subscription service for premium quality food Nov 2017
Source: Dealroom.co 4
In Europe €6.5B in venture capital invested since 2013. Nearly half of
that for five global food delivery leaders
Food tech investment (€B) Top-5 delivery platforms (€B)
Top-5 delivery platforms:
€ 2,0B
€3.1 billion invested
€ 1,7B
€ 1,7B
€ 1,6B
€ 0,8B
€ 1,2B
€ 1,0B
€ 1,2B € 1,0B ‘Next Generation’ food
€ 0,9B
tech: €3.4 billion invested
€ 0,8B € 0,3B
€ 0,7B
€ 1,0B
€ 0,9B
€ 0,4B
€ 0,7B
€ 0,2B
€ 0,5B
€ 0,1B € 0,2B
€ 0,1B
€ 0,0B
2013 2014 2015 2016 2017 2018E
Source: Dealroom.co
Note: 2018 is based on Jan-Sept annualized.
5
Following investment of €3.1B, five global food tech leaders emerged
from Europe, worth a combined €21B
7x
€ 21B
Value creation
2.8x
€ 8,8B
(€ 3,1B)
Investment
Exit (IPO) Value today
(2012-2015)
‘10 € 1.9B ‘17 € 4.4B € 8B
’01 € 0.1B ’14 € 1.8B € 5B
’11 € 0.4B ’17 € 1.7B € 2B
’00 € 0.1B ’16 € 1.0B € 3B
‘12 € 0.8B -- € 2-3B
Source: Dealroom.co 6
Food delivery received nearly half of food tech investment in Europe.
However, delivery is only 1.5% of the total consumption market
OPPORTUNITY INCUMBENTS INNOVATORS DRIVERS
€2 trillion GMV
food consumption § Convenience
€21 billion
in Europe Delivery value created
-- § Better apps
Food delivery : § Incredible choice
- Just 1.5% of consumption €30 billion
- Received ~half of food tech
investment (€3 billion) § Service innovation
€0,6tn 20x larger § Healthier options
Restaurants
§ Personalisation
§ Online penetration is
around 6% (10%+ in
London, Beijing, Shanghai)(1)
€1,1tn 37x larger
Groceries § Services like Amazon Prime
and Glovo are re-setting
consumer expectations
§ Consumer focus on health
€0,4tn 13x larger
Alcohol & tobacco § Smoking alternatives
Source: Eurostat data and Dealroom analysis.
1. KANTAR.
7
Primary Production Transformation Distribution & Consumption
Input Farmers Traders Food companies Retailers
Incumbents
Global sales €500B €3 trillion €1 trillion €4 trillion Global: €6 trillion
Europe: €2 trillion
Innovators
Alternative proteins
Gene editing Big data integration Efficiency On-demand
Clean label
Key themes Biologicals Robotics Transparency
Healthier food
Same day delivery
Marketplaces Indoor farming Shorter supply chains Private label
New brands
Next Generation Food Tech leaders emerging Food Delivery
Next Generation Food Tech leaders emerging
The next generation of European Food Tech entrepreneurs is
gearing up for growth
Tropic Biosciences
Primary Production – Investment in Europe Develops high-performing commercial varieties of
$ 10.0M Jun 2018
Genetic breeding
tropical crops
Series A
Amount invested (€M) Number of rounds
ecoRobotix € 9.0M May 2018
Manufactures robots that identify and remove weeds Farming robots
€ 300M 150 Early VC
from farming crops
Infarm $ 25.0M Feb 2018
€ 252M Farming tech for grocery stores, restaurants, and local Vertical farms
€ 250M distribution centers
Series A
€ 250M 125
Solynta € 16.0M Nov 2017
Potato breeding
Hybrid potato breeding Series B
€ 200M 100 Nice Fruit € 35.0M Jul 2017
Preserves the cellular structure and organoleptic Freezing technology
properties of the fruit during the freezing stages Growth Equity
Agricool € 8.0M Jul 2017
€ 150M 75 Technology to grow fruit and vegetables inside Innovative farming
shipping containers Early VC
€ 104M Protix Biosystems € 45.0M Jun 2017
Insect-based ingredients
High-quality insect based ingredients Late VC
€ 100M 50
M2i Life Sciences € 12.0M Jun 2017
Design, formulation and production of complex Crop protection
molecules Late VC
€ 47M
€ 50M 25
Agrilution € 3.8M May 2017
Indoor farming
€ 24M A kitchen device that can grow vegetables and herbs Series A
€ 16M
Ynsect € 13.8M Dec 2016
€ 0M – Transforms insects into a nutrient resource for Insect-based ingredients
2013 2014 2015 2016 2017 2018 agriculture Series B
Source: Dealroom.co
Note: 2018 is based on Jan-Sept annualized.
9
New brands and innovative food concepts emerging
Food Transformation – Investment in Europe Huel £ 20.0M Oct 2018
Powdered vegan food
Nutritionally complete, powdered vegan food Growth Equity
Amount invested (€M) Number of rounds
Allplants £ 7.5M Sep 2018
Vegan
€ 500M 200 Makes and delivers Vegan meals Series A
Simple Feast $ 12.0M Aug 2018
Healthy food box
Makes and delivers vegetarian meals Early VC
€ 400M
€ 400M € 387M
150 Mosa Meat € 7.5M Jul 2018
Tissue cultured meat
The world’s first tissue cultured hamburger Series A
€ 300M Feed. € 15.0M Jun 2018
Natural complete meals in the form of drinks or Innovative food
energy bars
Early VC
100
Innovafeed € 15.0M Feb 2018
Agri-tech
€ 200M Sustainable way to produce protein Early VC
€ 175M
MiniBrew € 2.5M May 2017
Brewing machine
Smart beer brewing machine Early VC
€ 105M 50
€ 100M
€ 55M BrewDog £ 100M Apr 2017
Beer brand
A craft beer brewery Growth Equity
€ 30M
XOLUTION € 45.0M Jan 2016
€ 0M – Resealable cans
2013 2014 2015 2016 2017 2018
Drinking products for increasingly mobile lifestyles Early VC
Source: Dealroom.co
Note: 2018 is based on Jan-Sept annualized.
10And continued investment in innovative distribution & consumption
platforms
Kolonial.no € 30.0M Aug 2018 Online
Distribution & Consumption – Investment in Europe Norway’s largest online grocery store Late VC supermarket
Amount invested (€M) Number of rounds Glovo € 115M Jul 2018
On-demand mobile app that connects customers with On-demand app
€ 700M 200 independent local couriers Series C
€ 640M
Tiller Systems $ 13.9M Jun 2018
€ 605M Restaurant
Point-of-Sale solution for bars and restaurants Series B
€ 600M
Gousto £ 28.5M Mar 2018
Home cooking
150 Delivers perfectly measured ingredients to cook at home Late VC
€ 500M
€ 440M FoodSpring € 22.0M Mar 2018
Fit food
Innovative sports nutrition products Early VC
€ 400M € 377M
Vivino $ 20.0M Feb 2018 Wine
100 The world's largest online wine marketplace Series C supermarket
€ 300M
Muscle Food £ 10.0M Jan 2018
Healthy food
Changes the way people buy healthy food online Early VC
€ 200M MatHem SEK221M Dec 2017 Online
50 Sweden's largest online food store Late VC supermarket
€ 141M
Frichti € 30.0M May 2017
€ 100M
Food delivery platform designed to connect consumers Meal kits
to restaurants
Series B
€ 28M
€ 0M – Picnic € 100M Mar 2017 Online
2013 2014 2015 2016 2017 2018 Online-only supermarket without delivery costs Series B supermarket
Source: Dealroom.co
Note: 2018 is based on Jan-Sept annualized.
11UK, Germany and France lead, in line with venture capital. But Italy
and Spain stand out by number of rounds
By amount invested By number of rounds
Fr a n dom
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45%
Amount
invested in
Food Tech 26%
2013-2018 20%
17%
12% 12%
8% 9%
5% 5% 7% 7%
3% 1% 4% 4% 2%
0% 0% 2% 1% 1% 1% 0% 1% 2% 2% 1%
Venture 2% 2% 2% 1% 1% 1% 2% 1%
5% 4% 3% 4% 4% 3% 3% 2% 2%
7% 6% 7% 6%
capital, 11%
amount 15% 13%
15%
18%
invested in
Europe 28%
2013-2018 33%
Source: Dealroom.co 12A solid, local funding and partnering ecosystem for Food tech
companies is shaping up in Europe
Big Food Tech
Specialist VC Funds Incumbents Crowdfunding Generalist VC Funds Incubators & Accelerators
(first generation)
13A new generation of investors: specialist Food Tech funds
HQ Amsterdam/Boston Paris/Bologna Paris
FOCUS Mainly Ag-tech Food tech and Ag-tech Mainly Ag-tech
YEAR FOUNDED 2013 2018 2014
FUND SIZE $ 200M € 70M+ € 124M
STAGE Series A/B in Europe & US Series A/B in Europe Series A/B in France
EIF, Nestlé, bpifrance, Crédit Agricole, Groupama, bpifrance, Avril,
NOTABLE LPs Rabobank, Fidelity
Fondo Italiano d'Investimento Tereos
INVESTMENTS
+ two investments not announced
Source: Dealroom.co 14The first generation Food tech companies have become very
acquisitive, to expand and consolidate their market
CORPORATE LOCATION (HQ) STRATEGIC FOCUS ACQUISITIONS & DIRECT INVESTMENTS
HipMenu, Hungry Group, Quiqup, Foodora, Rappi, Foodfly, Carriage, Hungryhouse, Foodpanda,
Delivery Hero Berlin Market expansion & consolidation
ClickDelivery, Foodarena, e-food.gr, Yemeksepeti, Jidloted, DameJidlo, Pizza.de
Market expansion & consolidation Hungryhouse, Pizzabo, Deliverex, Clicca e Mangia, Food2u, SinDelantal, Flyt.io, iFood, TouchBistro,
Just Eat London
Innovative models (e.g. Skip) SkipTheDishes, La Nevera Roja, Menulog,
Takeaway.com Amsterdam Market expansion & consolidation Fooderena, Oliveira, BGMENU.com, Food Express, Ten Bis, Lieferservice, Lieferando
Gurugram, Mekanist, Gastronauci, Obedovat, Cibando, Lunchtime, Menu Mania, Sparse Labs, Runnr,
Zomato Restaurant discovery & reservations
India TongueStun
Elior Group Paris Restaurant/hotel management La Belle Assiette, PopChef, TouchAndPlay, Never Eat Alone, Lancer Hospotality
Needham,
TripAdvisor Restaurant booking Couverts, BestTables, LaFourchette, SeatMe, Eatigo
United States
Naspers Cape Town Food is major focus Delivery Hero, ESKY, iFood, Swiggy, FarmLogs, Movile
Mail.ru Group Moscow Russia Foodmate, Delivery Club, zakazaka.ru, Instamart.ru
Chiyoda,
Recruit Holdings Restaurant booking Quandoo, Treatwell, TrustYou
Japan
Alibaba Hangzhou Asia Ele.me, Bigbasket, Yiguo, Sun Art Retail Group, Tokopedia
Source: Dealroom.co 15The large Food and Agricultural companies continue to look for
innovation to add to their platforms
CORPORATE LOCATION (HQ) STRATEGIC FOCUS ACQUISITIONS & DIRECT INVESTMENTS
Boulogne,
Carrefour Organic food So.bio, Bringo, Quitoque
France
Wayzata,
Cargill Animal nutrition & Protein Memphis Meats, Pro-Pet
United States
Rotterdam,
Unilever Delivery, Direct-to-consumer Gousto, Chromatin, Sun Basket, Milkbasket
Netherlands
Basel, Abbott & Cobb, FarmShots, Nidera, Devgen, Phytech, Asilomar Bio, BioPhero, Greenlight
Syngenta Crop protection
Switzerland Biosciences, AgriMetis, AgBiome, Agworld
Atlanta,
The Coca-Cola Company Non-alcoholic beverage Home Eat Home
United States
Clermont-Ferrand,
Michelin Restaurant tech Bookatable, Restaurantes.com, Le Fooding, Exotic Systems
France
Farm management & Organic
Archer Daniels Midland Company Chicago Agrible, Harvest Innovations
food
Diageo London Alcoholic beverage VinePair, Stirrings
Metro Group Dusseldorf Restaurant tech & Distribution Lunchio, Coffee Could
Vevey,
Nestle Delivery, Direct-to-consumer Freshly, Tails.com, Blue Bottle Coffee
Switzerland
Source: Dealroom.co 16Crowdfunding can be an effective platform to turn investors into
brand ambassadors, compelling for consumer brands
% of rounds with crowdfunding participation
Notable investments Key European platforms
European Food Tech Europe Overall
20%
18%
15%
10%
8%
Non-European platforms
5%
–
2013 2014 2015 2016 2017 2018
Source: Dealroom.co 17Generalist VC funds are hunting for the next Food tech unicorn
INVESTOR LOCATION (HQ) TYPICAL FIRST ROUND FOOD TECH INVESTMENTS
LocalGlobe London Seed Taster, Menu Next Door, INFARM, WeFARM, Farmeron
Early stage seed investor in London
Point Nine Capital Lemoncat
Berlin Seed
The Angel VC Exits: Marley Spoon, Kitchen Stories, Cibando
Index Ventures Pets Deli, Just Eat, Deliveroo
London Series A
International venture capital firm Exits: Zesty, Blue Bottle Coffee, Just Eat
HV Holtzbrinck Ventures CaterWings, Everdine, EatFirst, Quandoo
Munich/Berlin Series A
Leading German VC active throughout Europe Exits: Quandoo, Delivery Hero
Rocket Internet SE Pets Deli, Lemoncat, Chefclub, CaterWings, ShopWings
Berlin Series A
Incubates and invests in internet and technology companies globally Exits: Foodpanda, Foodora, HelloFood, Pizzabo, La Nevera Roja, Delivery Hero
Balderton Capital Simple Feast, Vivino, INFARM
London Series A
The leading venture investor in the EU Exits: Bookatable, Medicanimal
Target Global Lemoncat
Berlin Series A
European wide life cycle investor Exits: Foodfox, Delivery Hero, Mixville
Sofinnova Partners Paris Series A/B Micropep Technologies, DNA Script, Agrosavfe
VC specialized in Life Sciences, often lead role in round A financings
Accel Partners London Series A/B OLIO, Deliveroo
Venture and growth equity firm
Idinvest Partners Glovo, Frichti, Lunchr, DNA Script, M2i Life Sciences, Agriconomie
Paris Series B
Specializing in direct investments and fund of funds investments Exit: Cerelia
Business Growth Fund London Late VC Gousto, Muscle Food, Purity Brewing
Helps Britain’s growing businesses by providing growth capital
Insights Venture Partners New York Late VC HelloFresh, Delivery Hero
Leading global private equity and venture capital firm
Source: Dealroom.co 18Notable European exits (2016-2018)
COMPANY LOCATION (HQ) TRANSACTION ACQUIRER(S) SELLER(S)
Delivery Hero € 4.4B IPO Point Nine Capital, Fabrice Grinda, Team Europe, TEV |
Berlin -
Food ordering website Jun 2017 Tengelmann Ventures, Hasso Plattner Ventures
HelloFresh € 1.7B IPO HV Holtzbrinck Ventures, Investment AB Kinnevik, Rocket
Berlin -
Subscription service that focuses on premium quality and ecological foods Nov 2017 Internet SE, Vorwerk, Phenomen Ventures
Takeaway.com Amsterdam € 993M IPO - Prime Ventures, Macquarie Group
The leading online food delivery marketplace in Continental Europe Sep 2016
Tails.com £150M Acquisition JamJar Investments, Octopus Ventures, Slingshot Ventures,
London Nestlé
Dog food delivered at your doorstep Apr 2018 Draper Esprit
Brewdog Aberdeenshire, £ 113M Secondary TSG Equity Partners Crowdcube, TSG Equity Partners
A craft beer brewery that produces bottled and canned beers UK Apr 2017
Bookatable € 108M Acquisition Balderton Capital, Wellington Partners,
London Michelin
Global online marketing and real-time reservations services for restaurants Jan 2016 Kreos Capital
Delivery Club $ 100M Acquisition AddVenture, Phenomen Ventures, Guard Capital, NJF
Moscow Mail.ru Group
A Russian online food delivery marketplace Nov 2016 Capital, Nicole Junkermann
Marley Spoon $ 145M IPO Point Nine Capital, Global Founders Capital, Atlantic Labs,
Berlin -
Home delivery of recipes and ingredients to encourage home cooking Jul 2018 Lakestar, Klaus Hommels
CAKE London $ 13.3M Acquisition American Express Crowdcube
Pay restaurant bills instantly from your phone Mar 2018
Foodist Hamburg, € 3.5M Acquisition Andreas Brandt, Alexander Djordjevic, Ole Schaumberg,
Ströer Media
Monthly gourmet food subscription Germany Aug 2016 ProSiebenSat.1 Accelerator
Source: Dealroom.co 19Yoram Wijngaarde Ivan Draganov Irina Anihimovskaya
Founder & CEO Research Analyst Research Analyst
Ivan Farneti Niccolo Manzoni
yoram@dealroom.co ivan.draganov@dealroom.co irina@dealroom.co
Partner Partner
■ We back Food Tech entrepreneurs for a healthier, more ■ World-leading tech firms, investments firms, multinationals
sustainable and more efficient food system and governments use Dealroom’s software, database and
research to identify promising companies and innovation
■ Five Season Ventures is the first VC fund in Europe solely trends
focused on investing in early stage food technology
companies ■ Dealroom has been featured in The Economist, The New York
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