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
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
Europe €30B
USA €43B
Asia €83B
Rest of
World
€13B
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
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
Incumbents
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
Source: Dealroom.co
Note: 2018 is based on Jan-Sept annualized.
9
New brands and innovative food concepts emerging
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
€ 300M
Muscle Food £ 10.0M Jan 2018
Healthy food
Changes the way people buy healthy food online Early VC
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
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
Be d
ed
rtu
G e
it z
rw
ite
an
th
lg
nm
c
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
STAGE Series A/B in Europe & US Series A/B in Europe Series A/B in France
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
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
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
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
Sofinnova Partners Paris Series A/B Micropep Technologies, DNA Script, Agrosavfe
VC specialized in Life Sciences, often lead role in round A financings
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
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
Brewdog Aberdeenshire, £ 113M Secondary TSG Equity Partners Crowdcube, TSG Equity Partners
A craft beer brewery that produces bottled and canned beers UK Apr 2017
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
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
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