Why venture capitalists are devouring food start-ups. VC sees huge opportunities in the food tech and agtech scene. The food system is in need of a massive transformation, and lags behind other industrial sectors. There are enormous opportunities, and more innovation than ever across themes such as sustainable protein, soil & crop tech, decision support tech, water, indoor agri and food storage.
Further, “Big Food is facing extinction,” as founding partner Mark Kahn of India based VC firm Ominvore Partners says. “No one eats Chef Boyardee anymore.” AgFunder co-founder Rob Leclerc highlights that big food companies lost $4 billion in market share in 2014. “Those companies are scared. They don’t know how to deal with all of the change.” From the article: To that end, General Mills, Coca-Cola, PepsiCo and others are rushing to refresh their portfolios with the purchase of entrepreneurial brands that meet Millennials’ demand for high-quality products. The Hershey Co. bought Krave Pure Foods, a maker of nitrite-free beef jerky with $35 million in sales, for a reported $300 million earlier this year. In May, Hormel Foods paid $775 million for Applegate Farms, a producer of humanely raised, antibiotic- and preservative-free deli meats
This is an older article, but the topic is more relevant than ever, as it is only set to accelerate: https://www.entrepreneur.com/article/251515