Berlin-based FoodLabs, an early-stage venture capital firm established in 2016, just closed its third fund at €105 million. The fund aims to support European food-tech and agriculture-tech startups tackling some of the world's most pressing problems like food security, sustainability, and health. This announcement comes at a time when economic conditions have become challenging for venture fundraising, but FoodLabs remains steadfast in addressing these critical areas.
Why This Matters
The food industry is the second largest globally, with one of the most substantial societal impacts. Yet, it is one of the least digitalized and most unsustainable sectors worldwide. Investing in this space offers immense opportunities to create solutions not just for business growth but also for global challenges like climate impact and resource scarcity. Here is what FoodLabs’ new fund can tell us about the trajectory of startups in this space.
Key Details About FoodLabs' Third Fund
Here’s a breakdown of the core aspects of this funding:
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Fund Size: €105 million, to be distributed among early-stage companies primarily in Europe.
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Investment Sectors: Focus on three critical intersections:
- Agriculture: Supporting smarter farming involving new technologies like autonomous machinery and financial tools for farmers.
- Food Security: Encouraging innovations in sustainable food production and supply chains.
- Health: Funding startups creating food-related products that enhance well-being.
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Target Startups:
- Early-stage.
- Initial investment cheque sizes between $100,000 and $2 million.
- Expected to fund 25, 30 startups across varying maturity levels.
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Notable Backers:
- Bitburger Holding (beverage industry leader).
- Nestlé (a global name in food production).
- Red Bull (energy drinks giant).
- Landwirtschaftliche Rentenbank (a German agricultural funding entity).
FoodLabs' Investment Philosophy
General Partner Patrick Noller from FoodLabs explained that despite the slowdown in funding for sustainability-focused startups, the urgency hasn’t diminished. Problems like food waste, resource inefficiencies, and climate impact remain unsolved. What makes FoodLabs stand out? Their strategy connects consumer understanding with deep-tech exploration to ensure both commercial success and societal impact.
For example, FoodLabs has previously invested in companies like:
- Formo: Specializing in animal-free cheese alternatives through fermentation.
- Klim: Driving regenerative agriculture adoption by incentivizing farmers to adopt sustainable practices.
- Infinite Roots: Scaling innovations in mycelium-based materials for food applications.
These examples prove that investment in novel business models and technologies is essential to transform the food system.
4 Insights for Startups in FoodTech
If you’re a founder, watch these trends closely:
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Sustainability Over Hype:
While industries like AI and defense are the current buzzworthy spaces, food-tech startups have long-term value potential. The food system’s overhaul won’t happen with surface-level fixes; it requires solutions rooted in science and sustainability. -
Funding with Purpose:
Investors are backing businesses that contribute to planetary and human health. This includes promoting regenerative agriculture, finding plant-based protein sources, and digitizing food supply chains. -
Strategic Backers:
FoodLabs has attracted industry giants like Nestlé and Red Bull. Their involvement signals demand for ideas that large corporations can later integrate into their supply chains or use to meet sustainability metrics. -
Balancing Innovation and Execution:
The firm emphasizes creating companies that not only innovate but also execute ideas effectively in real-world settings. Startups need a unique blend of scientific discovery and business acumen to succeed.
How to Position Your Startup for Investment
Curious about what makes a pitch successful for investors like FoodLabs? Here’s a quick guide:
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Highlight the Problem You Solve:
Every pitch must articulate the specific gap in the food system your company addresses. It could be reducing waste, improving ingredient sourcing, or revolutionizing agricultural tools, but be clear and focused. -
Show Data-Based Impact:
Investors love numbers. Showcase how your solution reduces emissions, saves water, or creates efficiencies using relatable metrics. -
Present Scalable Solutions:
FoodLabs is looking for startups capable of achieving scale. Ensure that scalability is baked into both your product development and roadmap. -
Target Strategic Partnerships:
Partnerships with major market players (like Nestlé for product distribution) can demonstrate your viability and help scale quicker.
Common Missteps to Avoid in Food-Tech Startups
- Neglecting Scientific Validation: Relying on unproven science can make investors hesitant. Rigorous testing and third-party validations are crucial.
- Focusing Solely on Growth: While growth metrics are important, consumer trust and regulatory compliance in food-tech matter just as much.
- Ignoring Offline Distribution: E-commerce might suit some areas, but food systems still rely on brick-and-mortar operations.
- Lack of Cost Awareness: Miscalculations in production costs can stall promising ventures. Spend time running detailed financial models before approaching investors.
Where is FoodTech Heading?
The long-term vision for food-tech startups lies in building solutions that can integrate with larger ecosystems. Robotics, fermentation, AI-driven inventory planning, and plant-based innovations are already commanding attention. What’s next? Likely, we'll see more collaborations among food giants, startups, and governments to overhaul outdated systems.
If you want concrete examples of how to implement these strategies, read about FoodLabs’ recent partnership with Voltrac developing autonomous tractors or their collaboration with DAF on financial tools for farmers.
Final Thoughts
FoodLabs’ €105 million fund reinforces why investing in food-tech is not just an economic opportunity, it’s a necessity. Founders who dream of transforming how we consume food or grow crops now have a solid example of where the industry is heading. Keep an eye on benchmarks like this fund to understand what investors prioritize in our fast-changing world. Entrepreneurs, this is your moment to step up with bold, scalable ideas for improving the future of food.
FAQ
1. What is FoodLabs and what do they focus on?
FoodLabs is a Berlin-based early-stage venture capital firm that invests in food-tech and agri-tech startups focusing on sustainability, food security, and health. Read more about FoodLabs
2. How much is FoodLabs’ third fund and what is its purpose?
FoodLabs recently closed its third fund at €105 million to support early-stage European startups innovating in agriculture, food production, and health sectors. Learn about the funding announcement
3. What are the investment areas for FoodLabs’ third fund?
FoodLabs focuses on three core sectors: agriculture, food security, and health, driving technological innovations to address systemic issues. Explore FoodLabs' investment thesis
4. What is the typical investment size and target for this fund?
FoodLabs plans initial investments ranging from $100,000 to $2 million, aiming to fund 25, 30 startups. Find more details on investment size
5. Who are the notable backers of FoodLabs’ third fund?
Prominent backers include Bitburger Holding, Nestlé, Red Bull, and Landwirtschaftliche Rentenbank. Check out the backers here
6. What challenges and opportunities are FoodLabs targeting with its fund?
FoodLabs is addressing global issues like food waste, climate impact, resource inefficiencies, and sustainability within the food and agriculture sectors. Discover FoodLabs’ strategy
7. What notable startups has FoodLabs previously funded?
FoodLabs has backed innovative startups such as Formo (animal-free cheese), Klim (regenerative agriculture), and Infinite Roots (mycelium-based solutions). See portfolio highlights
8. Why is investing in food tech considered a necessity?
The food industry is the second-largest globally, yet it remains one of the least digitalized and most unsustainable sectors, presenting immense opportunities for disruption. Learn about food industry trends
9. How does FoodLabs combine scientific innovation and commercial execution?
FoodLabs supports startups that balance cutting-edge scientific research with practical business strategies to create scalable solutions. Read about FoodLabs’ hybrid approach
10. What are the strategic advantages for early-stage startups collaborating with FoodLabs?
FoodLabs offers more than funding by helping startups refine technologies, create partnerships, and scale innovative food systems. Dive into FoodLabs’ startup support
About the Author
Violetta Bonenkamp, also known as MeanCEO, is an experienced startup founder with an impressive educational background including an MBA and four other higher education degrees. She has over 20 years of work experience across multiple countries, including 5 years as a solopreneur and serial entrepreneur. Throughout her startup experience she has applied for multiple startup grants at the EU level, in the Netherlands and Malta, and her startups received quite a few of those. She’s been living, studying and working in many countries around the globe and her extensive multicultural experience has influenced her immensely.
Violetta Bonenkamp's expertise in CAD sector, IP protection and blockchain
Violetta Bonenkamp is recognized as a multidisciplinary expert with significant achievements in the CAD sector, intellectual property (IP) protection, and blockchain technology.
CAD Sector:
- Violetta is the CEO and co-founder of CADChain, a deep tech startup focused on developing IP management software specifically for CAD (Computer-Aided Design) data. CADChain addresses the lack of industry standards for CAD data protection and sharing, using innovative technology to secure and manage design data.
- She has led the company since its inception in 2018, overseeing R&D, PR, and business development, and driving the creation of products for platforms such as Autodesk Inventor, Blender, and SolidWorks.
- Her leadership has been instrumental in scaling CADChain from a small team to a significant player in the deeptech space, with a diverse, international team.
IP Protection:
- Violetta has built deep expertise in intellectual property, combining academic training with practical startup experience. She has taken specialized courses in IP from institutions like WIPO and the EU IPO.
- She is known for sharing actionable strategies for startup IP protection, leveraging both legal and technological approaches, and has published guides and content on this topic for the entrepreneurial community.
- Her work at CADChain directly addresses the need for robust IP protection in the engineering and design industries, integrating cybersecurity and compliance measures to safeguard digital assets.
Blockchain:
- Violetta’s entry into the blockchain sector began with the founding of CADChain, which uses blockchain as a core technology for securing and managing CAD data.
- She holds several certifications in blockchain and has participated in major hackathons and policy forums, such as the OECD Global Blockchain Policy Forum.
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Violetta is a true multiple specialist who has built expertise in Linguistics, Education, Business Management, Blockchain, Entrepreneurship, Intellectual Property, Game Design, AI, SEO, Digital Marketing, cyber security and zero code automations. Her extensive educational journey includes a Master of Arts in Linguistics and Education, an Advanced Master in Linguistics from Belgium (2006-2007), an MBA from Blekinge Institute of Technology in Sweden (2006-2008), and an Erasmus Mundus joint program European Master of Higher Education from universities in Norway, Finland, and Portugal (2009).
She is the founder of Fe/male Switch, a startup game that encourages women to enter STEM fields, and also leads CADChain, and multiple other projects like the Directory of 1,000 Startup Cities with a proprietary MeanCEO Index that ranks cities for female entrepreneurs. Violetta created the "gamepreneurship" methodology, which forms the scientific basis of her startup game. She also builds a lot of SEO tools for startups. Her achievements include being named one of the top 100 women in Europe by EU Startups in 2022 and being nominated for Impact Person of the year at the Dutch Blockchain Week. She is an author with Sifted and a speaker at different Universities. Recently she published a book on Startup Idea Validation the right way: from zero to first customers and beyond, launched a Directory of 1,500+ websites for startups to list themselves in order to gain traction and build backlinks and is building MELA AI to help local restaurants in Malta get more visibility online.
For the past several years Violetta has been living between the Netherlands and Malta, while also regularly traveling to different destinations around the globe, usually due to her entrepreneurial activities. This has led her to start writing about different locations and amenities from the POV of an entrepreneur. Here’s her recent article about the best hotels in Italy to work from.
About the Publication
Fe/male Switch is an innovative startup platform designed to empower women entrepreneurs through an immersive, game-like experience. Founded in 2020 during the pandemic "without any funding and without any code," this non-profit initiative has evolved into a comprehensive educational tool for aspiring female entrepreneurs.The platform was co-founded by Violetta Shishkina-Bonenkamp, who serves as CEO and one of the lead authors of the Startup News branch.
Mission and Purpose
Fe/male Switch Foundation was created to address the gender gap in the tech and entrepreneurship space. The platform aims to skill-up future female tech leaders and empower them to create resilient and innovative tech startups through what they call "gamepreneurship". By putting players in a virtual startup village where they must survive and thrive, the startup game allows women to test their entrepreneurial abilities without financial risk.
Key Features
The platform offers a unique blend of news, resources,learning, networking, and practical application within a supportive, female-focused environment:
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Impact and Growth
Since its inception, Fe/male Switch has shown impressive growth:
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Partnerships
Fe/male Switch has formed strategic partnerships to enhance its offerings. In January 2022, it teamed up with global website builder Tilda to provide free access to website building tools and mentorship services for Fe/male Switch participants.
Recognition
Fe/male Switch has received media attention for its innovative approach to closing the gender gap in tech entrepreneurship. The platform has been featured in various publications highlighting its unique "play to learn and earn" model.