the cube journal

Wink at the future of the Food Industry - Blue Horizon Ventures

"I believe that in 30 years or so we will no longer need to kill any animals and that all meat will either be clean or plant-based, taste the same and also be much healthier for everyone.”
- Richard Branson, founder of Virgin Group

 

The global food and beverage industry is one the largest industries in the world, reaching over $8 trillion in 2017, but at the same time is also one of the less improved, as the system of food production remains quite inefficient and polluting.

 

OUR FOOD SYSTEM IN NUMBERS

 

 

There are myriad problems but two are the most worrying.

First: Climate change and sustainability.
The United Nations scientists claim that animal agriculture contributes about 40% more to climate change than planes, trucks, cars, and other forms of transportation combined.

Second: Population growth.
Also according to the United Nations, we face an overall population increase from 7.6bn to 10bn people by 2050, how are we going to feed such a burgeoning population? Demographic change also leads to an increasing need to fight age-related diseases through nutrition.

So, alternative foods are an appealing solution that are booming globally. Food manufacturers, from startups to the world’s largest meat companies, are innovating rapidly in this category. These next-generation plant-based meat, eggs, and dairy products are becoming more and more competitive against animal products on the key drivers of consumer choice: taste, price, and accessibility, thereof the plant-based meat substitute market will take place even faster than expected. Consumers tend to rapidly adapt as soon as a mass retail price point has been achieved so we will see a gradual shift from animal proteins to alternative proteins.

Additional to climate change and growing population, the pandemic has spurred a push towards alternative food sources and replacing meat with environmentally friendly alternatives. All these factors above highlight the growing tensions in global food production and so investors are moving towards funds and venture capital firms working in the alternative food market, which is vast and includes also all those players who want to make the whole food value chain and the behaviour of its consumers more sustainable. According to PitchBook, in 2020 venture-capital investors funneled $18.1 billion into food tech startups and Rancilio Cube have also taken a first step into this sector.

 

THE ECOSYSTEM IN NUMBERS

 

 

 

We are excited to start our new journey into food technology with Blue Horizon Ventures who recently announced the final closing of their first flagship fund Blue Horizon Ventures I at 183M.

Blue Horizon Ventures is a Zurich-based venture capital firm focused on making the food industry more sustainable. Its mission is to generate value for investors by supporting and promoting a positive global impact on the environment, human health and animal welfare with a main focus on investments in alternative proteins, synthetic biology, cultivated food (cellular agriculture), smart packaging and fighting food waste.

The expertise of Blue Horizon Ventures is based on a diverse team with a multidisciplinary skill set, consisting of bioscientists, food engineers, nutrition and retail experts as well as finance and venture capital specialists, and we believe that this can be a game changer in our new adventure in this field.

 

“The global capital, accelerated by the global COVID-19 pandemic is moving towards impact at great speed. This allows more and more entrepreneurs to start their ventures in the food sector. We are delighted to have reached the final close for our first flagship fund. The overwhelming interest and final fund size combined with our pace and quality of portfolio building reflect the enormous potential of our investment thesis: Financial performance paired with an attractive risk return profile and tangible impact.”

Michael Kleindl, Founder and Managing Partner of Blue Horizon Ventures

 

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