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