The State of European Food Tech 2018 - www.foodtech.vc - The State of European Food ...
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€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. 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 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. 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 Fr a n dom om s m ing gd ai and la nd s ly and ai nd a n in an y Be ark G dK l Ita u m Ire rla Sw e n Sp erl ga ed y Po a y Fi ark De d Fr d K l No u m Fi d Sp rla Sw e Sw a n Ne e n Ita erl ga Po a y an I re d nm c e n n Be d ed rtu G e it z i rw ite an th lg nm c e n n rtu ly it z m i rw ite nl er th lg la Un No Ne nl er Sw Un De 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 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 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 18
Notable 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 19
Yoram 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 Times, The Financial Times, the BBC, Bloomberg, CNBC and other publications Paris, France Amsterdam, Netherlands www.fiveseasons.vc www.dealroom.co info@fiveseasons.vc support@dealroom.co
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