10 notable deals and things to know this week (2023 – week #7)

Published on February 14, 2023

🇫🇷  🥫 Omie&Cie, a French startup, raised €15M for its fully integrated food brand. It develops its own 250 food products from a network of farmers using regenerative agriculture practices. Products are then distributed on its own marketplace and in stores.

🇺🇸  🍑  The Ugly Company, a US-based startup, raised $9M for its upcycled dried fruits made from “ugly” products. Upcycling (adding more value to a product that would have been either discarded or used at a lower value) is definitely a growing trend, notably as consumers are getting more aware of food waste all along the value chain.

WEBSTRIPLEFT.jpg

🇹🇷  🛵 Getir, the European leader in quick-commerce, which recently acquired Gorillas, its German competitor, is laying off some staff in the UK. In many markets, it seems that the two entities are overlapping, and some consolidation and additional layoffs are to be expected.

🇺🇸  🚚  Jokr, the US-based quick-commerce startup, raised a new round of $50M at a $1.3B valuation (which is an increased valuation since it last raised money, something getting as rare as unicorns these days). The startup wants to focus on the markets where it has the most strength, as if quick-commerce is not a “winner takes all market” but rather a “winner takes most market”.

🇪🇸 ✋ Barcelona is banning dark stores (the mini-warehouses from which quick-commerce startups operate). This will mostly affect Glovo, which will have to shut its dark stores or convert them into open supermarkets. Additionally, the city is now forcing dark kitchens (from which multiple virtual brands operate to cook food aimed for delivery) to be located in industrial districts.

🇫🇷  ☀️  Solar Brother, a French startup, just raised €1.45M in equity crowdfunding for its solar ovens. It already sells multiple devices, such as a solar barbecue or an oven that can be used while camping.

🇪🇪 💧 ÄIO, an Estonian startup, raised €1M for its alternatives to oils and fats used in the food industry, using precision fermentation.

🇮🇱  🍔  Meala FoodTech, an Israeli startup, raised $1.9M for its functional proteins used in alternative proteins. It hopes to improve the texture of meat alternatives.

🇬🇷  🧑‍🌾  Wikifarmer, a Greek startup, raised €5M (something rare enough for a Greek startup to be highlighted) for its Wikipedia for farmers.  Beyond advice, it is also a marketplace where farmers can sell their produce.

🇺🇸 🥬  Springworks Farm, a US indoor farming startup, is raising $22M for its new aquaponics greenhouse (combining fish and indoor farming).

You're in a good company

Join the 60+ clients of Digital FoodLab: leading agrifood companies, retailers, banks, investors, startups, and public organisations.

Use case: project for a global F&B company looking to map its AgTech innovation ecosystem and the best startups to partner with

What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
  • Monthly newsletter: each month we send a newsletter with the articles that we have gathered ranked by relevance, their summaries, and a layer of analysis.
  • Database: we set up a personalised database that will be filled month after month with the information gathered on the companies identified for the watch.
  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
  • Recommendation on whether to invest or not.

Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.