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 €13B World
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 2.8x
€ 8,8B Value creation Value
(€ 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 -- § Better apps in Europe Delivery value created 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 Biologicals Robotics Transparency Same day delivery Key themes Healthier food 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 $ 10.0M Jun 2018 Primary Production – Investment in Europe Develops high-performing commercial varieties of Genetic breeding tropical crops Series A Amount invested (€M) Number of rounds ecoRobotix € 9.0M May 2018 Farming robots € 300M 150 Manufactures robots that identify and remove weeds from farming crops Early VC
Infarm $ 25.0M Feb 2018 € 252M € 250M Farming tech for grocery stores, restaurants, and local Vertical farms 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
Protix Biosystems € 45.0M Jun 2017 € 104M 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 Series B 2013 2014 2015 2016 2017 2018 agriculture
Source: Dealroom.co Note: 2018 is based on Jan-Sept annualized. 9 New brands and innovative food concepts emerging
Huel £ 20.0M Oct 2018 Food Transformation – Investment in Europe 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 Mosa Meat € 7.5M Jul 2018 150 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 Sustainable way to produce protein Early VC € 200M € 175M
MiniBrew € 2.5M May 2017 Brewing machine Smart beer brewing machine Early VC € 105M 50 € 100M BrewDog £ 100M Apr 2017 € 55M Beer brand A craft beer brewery Growth Equity € 30M
XOLUTION € 45.0M Jan 2016 € 0M – Resealable cans Drinking products for increasingly mobile lifestyles 2013 2014 2015 2016 2017 2018 Early VC
Source: Dealroom.co Note: 2018 is based on Jan-Sept annualized. 10 And 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 € 141M 50 Sweden's largest online food store Late VC supermarket
Frichti € 100M € 30.0M May 2017 Food delivery platform designed to connect consumers Meal kits Series B € 28M to restaurants
€ 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. 11 UK, 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
UnitedGermany KingdomFranceSwedenSwitzerlandSpain NetherlandsIrelandFinlandDenmarkBelgiumItaly NorwayPortugal UnitedFrance KingdomGermanySwedenNetherlandsSpain SwitzerlandItaly DenmarkFinlandIrelandBelgiumNorwayPortugal
45% Amount invested in Food Tech 26%
2013-2018 20% 17% 12% 12% 8% 9% 5% 5% 7% 7% 3% 2% 4% 4% 1% 0% 0% 1% 1% 1% 0% 2% 1% 2% 2% 1%
1% 1% 1% 3% 2% 2% 2% 2% 2% 1% Venture 5% 4% 4% 4% 3% 3% 2% 7% 6% 7% 6% capital, 11% 13% amount 15% 15% 18% invested in Europe 28% 2013-2018 33%
Source: Dealroom.co 12 A 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)
13 A 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 14 The 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 15 The 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 16 Crowdfunding 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 17 Generalist 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
Lemoncat Point Nine Capital Berlin Seed The Angel VC Exits: Marley Spoon, Kitchen Stories, Cibando
Pets Deli, Just Eat, Deliveroo Index Ventures London Series A International venture capital firm Exits: Zesty, Blue Bottle Coffee, Just Eat
CaterWings, Everdine, EatFirst, Quandoo HV Holtzbrinck Ventures Munich/Berlin Series A Leading German VC active throughout Europe Exits: Quandoo, Delivery Hero
Pets Deli, Lemoncat, Chefclub, CaterWings, ShopWings Rocket Internet SE Berlin Series A Incubates and invests in internet and technology companies globally Exits: Foodpanda, Foodora, HelloFood, Pizzabo, La Nevera Roja, Delivery Hero
Simple Feast, Vivino, INFARM Balderton Capital London Series A The leading venture investor in the EU Exits: Bookatable, Medicanimal
Lemoncat Target Global 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
Glovo, Frichti, Lunchr, DNA Script, M2i Life Sciences, Agriconomie Idinvest Partners 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 18 Notable European exits (2016-2018)
COMPANY LOCATION (HQ) TRANSACTION ACQUIRER(S) SELLER(S)
Point Nine Capital, Fabrice Grinda, Team Europe, TEV | Delivery Hero Berlin € 4.4B IPO - Food ordering website Jun 2017 Tengelmann Ventures, Hasso Plattner Ventures
HV Holtzbrinck Ventures, Investment AB Kinnevik, Rocket HelloFresh Berlin € 1.7B IPO - 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
JamJar Investments, Octopus Ventures, Slingshot Ventures, Tails.com London £150M Acquisition Nestlé Dog food delivered at your doorstep Apr 2018 Draper Esprit
Aberdeenshire, Brewdog £ 113M Secondary TSG Equity Partners Crowdcube, TSG Equity Partners A craft beer brewery that produces bottled and canned beers UK Apr 2017
Balderton Capital, Wellington Partners, Bookatable London € 108M Acquisition Michelin Global online marketing and real-time reservations services for restaurants Jan 2016 Kreos Capital
AddVenture, Phenomen Ventures, Guard Capital, NJF Delivery Club Moscow $ 100M Acquisition Mail.ru Group A Russian online food delivery marketplace Nov 2016 Capital, Nicole Junkermann
Point Nine Capital, Global Founders Capital, Atlantic Labs, Marley Spoon Berlin $ 145M IPO - 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
Hamburg, Andreas Brandt, Alexander Djordjevic, Ole Schaumberg, Foodist € 3.5M Acquisition Ströer Media Monthly gourmet food subscription Germany Aug 2016 ProSiebenSat.1 Accelerator
Source: Dealroom.co 19 Yoram Wijngaarde Ivan Draganov Irina Anihimovskaya Founder & CEO Research Analyst Research Analyst Ivan Farneti Niccolo Manzoni [email protected] [email protected] [email protected] 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 Times, The Financial Times, the BBC, Bloomberg, CNBC and other publications
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