The Q·CAPITAL VENTURES Food Team is constantly observing new trends in the food & beverage sector and analyses this sector’s venture capital streams. Recently we looked at Israel’s food scene. Here a short summary of the most important points that make Israel a foodtech hotspot.
Israel is well known as startup and innovation nation. The reasons for this status are manifold:
Why food in Israel?
Israel is a frontrunner in stem-cell research, tissue engineering, microbiology and nanotechnology. This expertise was already perfected in agriculture technology (agrotech) and is now streaming into foodtech innovations. With this knowhow, Israel provides an ideal ground for food startups in the foodtech sector. Today, Israel is among the top 5 countries when we talk about innovations in foodtech.
Foodtech is a rather loosely defined concept and the term is often used for different products in the food sector. The most common definition is: Foodtech is dealing with technology that revolutionizes what we eat. To this category belong for instance: Alternative Foods (vegan alternatives to milk and meat), Cultured Meat (meat out of the Petri dish), technologies that optimize production processes, or technologies that change, reduce, or add ingredients.
A good overview of foodtech startups from around the world gives CB Insights.
Here some examples of Israeli foodtech startups:
VC & foodtech in Israel
With the increasing number of foodtech startups, also the interests in foodtech as investment area increases. Investors are searching for new investment options, as other technology areas are already saturated with VC. Therefore we see a lot of movement in the foodtech VC market:
Many VC funds and investors see in foodtech a „window of (investment) opportunity“.
Out of the similar reason new institutions and venture capital vehicles to support and finance foodtech startups are also rising in Israel, for example:
Undeniably there is a strong growth in the food and foodtech sector. With this, new food & beverage innovations get on the market and nearer to changed consumer needs. Investors’ money is needed to make these innovations market-ready and bring them to a broader circle of consumers. After the USA (pioneer in food startups and food VC), now Israel caught up. In our opinion, soon also in Europe the topic food & VC will be a less exotic one.