The State of European Food Tech 2018

Launched at on 18 & 19 October

in partnership with

€169 billionCombined value of global food tech

unicorns, of which

€30 billionFrom 9 European companies, vs.

€43B in the USA from 10 unicorns

€6.5 billionventure capital invested in food tech

in Europe since 2013

€21 billionValue created by first wave of European food tech leaders

€1 billion2018 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 acquisitionby Walmart

Chewy (USA)Sells dog and cat food, treats, and supplies

$ 3.4B acquisitionby Petsmart

Whole Foods (USA)America’s healthiest grocery store

$ 13.7B acquisitionby Amazon

Notable investment rounds Round

DoorDash (USA)Food delivery across the US and Canada

$ 250M Growth EquityAug 2018

Instacart (USA)Groceries delivered at your home

$ 150M Series EApr 2018

Ele.me (China)Meal ordering services in China

$ 3.0B Growth EquityAug 2018

Indigo (USA)Utilizing plant microbes to improve crops

$ 250M Series ESep 2018

Deliveroo (UK)Delivering premium restaurant meals

$ 385M Series FSep 2017

Notable IPOs IPO

Tilray (USA)Medical cannabis research and production

$ 1.5B IPOJuly 2018

Meituan Dianping (China)Online retail including food delivery

$ 53B IPOSep 2018

Delivery Hero (Germany)Food ordering website

€ 4.4B IPOJun 2017

Blue Apron (USA)Food ingredients and recipes delivered

€ 3.0B IPOJun 2017

HelloFresh (Germany)Subscription service for premium quality food

€ 1.7B IPONov 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

5Source: Dealroom.coNote: 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

6Source: 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

Val

ue

crea

tio

n

7Source: 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

Restaurants20x larger

▪ Service innovation

▪ Healthier options

▪ Personalisation

Groceries37x larger

▪ Online penetration is around 6% (10%+ in London, Beijing, Shanghai)(1)

▪ Services like Amazon Prime and Glovo are re-setting consumer expectations

Alcohol & tobacco13x larger

▪ Consumer focus on health

▪ Smoking alternatives

€2 trillion GMVfood consumption

in EuropeFood delivery :- Just 1.5% of consumption- Received ~half of food tech investment (€3 billion)

€0.4tn

€1.1tn

€0.6tn

€30 billion

Retailers

8Source: 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 trillionEurope: €2 trillion

Innovators

Key themesGene editing

BiologicalsMarketplaces

Big data integrationRobotics

Indoor farming

EfficiencyTransparency

Shorter supply chains

Alternative proteins Clean label

Healthier foodNew brands

On-demandSame day delivery

Private label

Next Generation Food Tech leaders emergingNext Generation Food Tech leaders emerging Food Delivery

The next generation of European Food Tech entrepreneurs is gearing up for growth

9

Tropic BiosciencesDevelops high-performing commercial varieties of tropical crops

$ 10.0M Jun 2018Series A

Genetic breeding

ecoRobotixManufactures robots that identify and remove weeds from farming crops

€ 9.0M May 2018Early VC

Farming robots

InfarmFarming tech for grocery stores, restaurants, and local distribution centers

$ 25.0M Feb 2018Series A

Vertical farms

SolyntaHybrid potato breeding

€ 16.0M Nov 2017Series B

Potato breeding

Nice FruitPreserves the cellular structure and organoleptic properties of the fruit during the freezing stages

€ 35.0M Jul 2017Growth Equity

Freezing technology

AgricoolTechnology to grow fruit and vegetables inside shipping containers

€ 8.0M Jul 2017Early VC

Innovative farming

Protix BiosystemsHigh-quality insect based ingredients

€ 45.0M Jun 2017Late VC

Insect-based ingredients

M2i Life SciencesDesign, formulation and production of complex molecules

€ 12.0M Jun 2017Late VC

Crop protection

AgrilutionA kitchen device that can grow vegetables and herbs

€ 3.8M May 2017Series A

Indoor farming

YnsectTransforms insects into a nutrient resource for agriculture

€ 13.8M Dec 2016Series 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.coNote: 2018 is based on Jan-Sept annualized.

Primary Production – Investment in Europe

New brands and innovative food concepts emerging

10

HuelNutritionally complete, powdered vegan food

£ 20.0M Oct 2018Growth Equity

Powdered vegan food

AllplantsMakes and delivers Vegan meals

£ 7.5M Sep 2018Series A

Vegan

Simple FeastMakes and delivers vegetarian meals

$ 12.0M Aug 2018Early VC

Healthy food box

Mosa MeatThe 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 2018Early VC

Innovative food

InnovafeedSustainable way to produce protein

€ 15.0M Feb 2018Early VC

Agri-tech

MiniBrewSmart beer brewing machine

€ 2.5M May 2017Early VC

Brewing machine

BrewDogA craft beer brewery

£ 100M Apr 2017Growth Equity

Beer brand

XOLUTIONDrinking products for increasingly mobile lifestyles

€ 45.0M Jan 2016Early 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.coNote: 2018 is based on Jan-Sept annualized.

And continued investment in innovative distribution & consumption

platforms

11

Kolonial.noNorway’s largest online grocery store

€ 30.0M Aug 2018Late VC

Onlinesupermarket

GlovoOn-demand mobile app that connects customers with independent local couriers

€ 115M Jul 2018Series C

On-demand app

Tiller SystemsPoint-of-Sale solution for bars and restaurants

$ 13.9M Jun 2018Series B

Restaurant

GoustoDelivers perfectly measured ingredients to cook at home

£ 28.5M Mar 2018Late VC

Home cooking

FoodSpringInnovative sports nutrition products

€ 22.0M Mar 2018Early VC

Fit food

VivinoThe world's largest online wine marketplace

$ 20.0M Feb 2018 Series C

Winesupermarket

Muscle FoodChanges the way people buy healthy food online

£ 10.0M Jan 2018Early VC

Healthy food

MatHemSweden's largest online food store

SEK221M Dec 2017Late VC

Online supermarket

FrichtiFood delivery platform designed to connect consumers to restaurants

€ 30.0M May 2017Series B

Meal kits

PicnicOnline-only supermarket without delivery costs

€ 100M Mar 2017Series B

Onlinesupermarket

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.coNote: 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%

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%

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 FundsBig 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, FidelityEIF, 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 & consolidationHipMenu, Hungry Group, Quiqup, Foodora, Rappi, Foodfly, Carriage, Hungryhouse, Foodpanda,

ClickDelivery, Foodarena, e-food.gr, Yemeksepeti, Jidloted, DameJidlo, Pizza.de

Just Eat LondonMarket 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

ZomatoGurugram,

IndiaRestaurant 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

TripAdvisorNeedham,

United StatesRestaurant 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 HoldingsChiyoda,

JapanRestaurant 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

CarrefourBoulogne,

FranceOrganic food So.bio, Bringo, Quitoque

CargillWayzata,

United StatesAnimal nutrition & Protein Memphis Meats, Pro-Pet

UnileverRotterdam,Netherlands

Delivery, Direct-to-consumer Gousto, Chromatin, Sun Basket, Milkbasket

SyngentaBasel,

SwitzerlandCrop protection

Abbott & Cobb, FarmShots, Nidera, Devgen, Phytech, Asilomar Bio, BioPhero, Greenlight Biosciences, AgriMetis, AgBiome, Agworld

The Coca-Cola CompanyAtlanta,

United StatesNon-alcoholic beverage Home Eat Home

MichelinClermont-Ferrand,

FranceRestaurant tech Bookatable, Restaurantes.com, Le Fooding, Exotic Systems

Archer Daniels Midland Company ChicagoFarm management & Organic

foodAgrible, Harvest Innovations

Diageo London Alcoholic beverage VinePair, Stirrings

Metro Group Dusseldorf Restaurant tech & Distribution Lunchio, Coffee Could

NestleVevey,

SwitzerlandDelivery, 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

LocalGlobeEarly stage seed investor in London

London Seed Taster, Menu Next Door, INFARM, WeFARM, Farmeron

Point Nine CapitalThe Angel VC

Berlin SeedLemoncat

Exits: Marley Spoon, Kitchen Stories, Cibando

Index VenturesInternational venture capital firm

London Series APets Deli, Just Eat, Deliveroo

Exits: Zesty, Blue Bottle Coffee, Just Eat

HV Holtzbrinck VenturesLeading German VC active throughout Europe

Munich/Berlin Series ACaterWings, Everdine, EatFirst, Quandoo

Exits: Quandoo, Delivery Hero

Rocket Internet SEIncubates and invests in internet and technology companies globally

Berlin Series APets Deli, Lemoncat, Chefclub, CaterWings, ShopWings

Exits: Foodpanda, Foodora, HelloFood, Pizzabo, La Nevera Roja, Delivery Hero

Balderton CapitalThe leading venture investor in the EU

London Series ASimple Feast, Vivino, INFARM

Exits: Bookatable, Medicanimal

Target GlobalEuropean wide life cycle investor

Berlin Series ALemoncat

Exits: Foodfox, Delivery Hero, Mixville

Sofinnova PartnersVC specialized in Life Sciences, often lead role in round A financings

Paris Series A/B Micropep Technologies, DNA Script, Agrosavfe

Accel PartnersVenture and growth equity firm

London Series A/B OLIO, Deliveroo

Idinvest PartnersSpecializing in direct investments and fund of funds investments

Paris Series BGlovo, Frichti, Lunchr, DNA Script, M2i Life Sciences, Agriconomie

Exit: Cerelia

Business Growth FundHelps Britain’s growing businesses by providing growth capital

London Late VC Gousto, Muscle Food, Purity Brewing

Insights Venture PartnersLeading global private equity and venture capital firm

New York Late VC HelloFresh, Delivery Hero

Notable European exits (2016-2018)

19Source: Dealroom.co

COMPANY LOCATION (HQ) TRANSACTION ACQUIRER(S) SELLER(S)

Delivery HeroFood ordering website

Berlin € 4.4B IPOJun 2017

-Point Nine Capital, Fabrice Grinda, Team Europe, TEV |

Tengelmann Ventures, Hasso Plattner Ventures

HelloFreshSubscription service that focuses on premium quality and ecological foods

Berlin € 1.7B IPONov 2017

-HV Holtzbrinck Ventures, Investment AB Kinnevik, Rocket

Internet SE, Vorwerk, Phenomen Ventures

Takeaway.comThe leading online food delivery marketplace in Continental Europe

Amsterdam € 993M IPOSep 2016

- Prime Ventures, Macquarie Group

Tails.comDog food delivered at your doorstep

London £150M AcquisitionApr 2018

NestléJamJar Investments, Octopus Ventures, Slingshot Ventures,

Draper Esprit

BrewdogA craft beer brewery that produces bottled and canned beers

Aberdeenshire, UK

£ 113M SecondaryApr 2017

TSG Equity Partners Crowdcube, TSG Equity Partners

BookatableGlobal online marketing and real-time reservations services for restaurants

London € 108M AcquisitionJan 2016

MichelinBalderton Capital, Wellington Partners,

Kreos Capital

Delivery ClubA Russian online food delivery marketplace

Moscow $ 100M AcquisitionNov 2016

Mail.ru GroupAddVenture, Phenomen Ventures, Guard Capital, NJF

Capital, Nicole Junkermann

Marley SpoonHome delivery of recipes and ingredients to encourage home cooking

Berlin $ 145M IPOJul 2018

-Point Nine Capital, Global Founders Capital, Atlantic Labs,

Lakestar, Klaus Hommels

CAKEPay restaurant bills instantly from your phone

London $ 13.3M AcquisitionMar 2018

American Express Crowdcube

FoodistMonthly gourmet food subscription

Hamburg,Germany

€ 3.5M AcquisitionAug 2016

Ströer MediaAndreas Brandt, Alexander Djordjevic, Ole Schaumberg,

ProSiebenSat.1 Accelerator

Niccolo Manzoni

Partner

Ivan Farneti

Partner

■ We back Food Tech entrepreneurs for a healthier, more sustainable and more efficient food system

■ 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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