12 notable deals and things to know this week (2023 – week #43)

Published on October 24, 2023

🇳🇱 🐜 Tyson Foods, the US-based meat giant, made a strategic investment in Protix, the Duch insect protein startup. This will help the startup increase its animal feed production and open a facility (the first “at scale”) in the US, turning byproducts into insect protein. This investment follows a handful of other partnership investments of large food players into startups scaling insects for animal feed.

🏴󠁧󠁢󠁳󠁣󠁴󠁿 🐜 Beta Bugs, a Scottish startup, raised €1.46M to produce insects for animal feed.

🇩🇪 🏪 Lidl Germany announced that it will offer price parity for the plant-based alternatives to meat and dairy products under its private label brands. As price is one of the major limitations of growth for plant-based, it will be interesting to observe how this will affect sales over the more than 100 plant-based products sold by Lidl.

🇯🇵 🌱 DAIZ, a Japanese startup, raised $47M to build the country’s “largest” plant-based meat factory.

🇺🇸🧪 Liberation Labs, a US startup, raised $75M for its commercial-scale precision fermentation protein facility (startups and established companies will then use that to manufacture their precision fermentation ingredients). The move toward cloud bioreactors is something we have already discussed here and a solution to finance the transition toward synthetic foods.

🇺🇸🤖 PickNik Robotics, a US startup, raised $2M for its robotic platform, which enables developers to create applications with robot arms.

🇦🇷🌱 Moolec Science, an Argentina-based startup using molecular farming to produce alternatives to animal ingredients, raised $30M to keep working on its R&D projects.

🇺🇸🌿 Zordi, a US startup, raised $20M for its automated greenhouses. It uses both AI and robotics to cut labour costs by 80%.

🇺🇸 🍔 Salted, a US startup, raised $14M for its network of virtual restaurant brands. Its focus on “better for you” brands is relatively new in an ecosystem dominated by unhealthy offerings and inconsistency (unlike most virtual brands, Salted cooks its products). We’ll see if delivery consumers are finally ready to move toward new types of food.

🇩🇰 ☘️ Denmark announced the world’s first national action plan to promote plant-based foods. It wants to bolster local consumption but also the exports of plant-based foods to make the country a leader in this field.
Denmark may be a small country, but it fights above its weight when we talk about FoodTech. You should have a look at the country’s state of investments and top startups in our dedicated report published a few weeks ago.

🇫🇷 🍃 VIF Systems, a French vertical farming startup using containers to grow leafy greens, raised an undisclosed amount of money from the French seed giant Limagrain.

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.