The State of European Food Tech 2018 Launched at on 18 & 19 October in partnership with www.foodtech.vc €169 billion Combined value of global food tech unicorns, of which €30 billion From 9 European companies, vs. €43B in the USA from 10 unicorns €6.5 billion venture capital invested in food tech in Europe since 2013 €21 billion Value created by first wave of European food tech leaders €1 billion 2018 estimated investment in ‘next generation’ food tech companies 63% Annual growth in investment in ‘next gen’ since 2013, in 1,241 companies 2 Europe produced 9 unicorns in Food Tech, in the Food Delivery segment in the past five years Food Delivery received nearly half of the €6.5 billion, but it only disrupts ~1% of the food retail market The ‘next generation’ of food tech entrepreneurs are focusing on the 99%, reinventing agriculture, food production and consumption 3 Food tech has created 35 unicorns globally, with a combined value of €169B, of which €30B from Europe Source: Dealroom.co. Uber Eats excluded from €43 billion. Agri-tech Consumer brands eCommerce Restaurant tech Delivery Europe €30B USA €43B Asia €83B Rest of World €13B Production & Transformation Distribution & Consumption Food tech is clearly heating up: globally €42B in combined transactions in 2018 so far, excluding IPOs 4 Notable acquisitions Transaction Ele.me (China) Meal ordering services in China $ 3.0B acquisition by Alibaba & Softbank LevelUp (USA) A user-engagement platform $ 390M acquisition by Grubhub Cornershop App (USA) On demand grocery delivery $ 225M acquisition by Walmart Chewy (USA) Sells dog and cat food, treats, and supplies $ 3.4B acquisition by Petsmart Whole Foods (USA) America’s healthiest grocery store $ 13.7B acquisition by Amazon Notable investment rounds Round DoorDash (USA) Food delivery across the US and Canada $ 250M Growth Equity Aug 2018 Instacart (USA) Groceries delivered at your home $ 150M Series E Apr 2018 Ele.me (China) Meal ordering services in China $ 3.0B Growth Equity Aug 2018 Indigo (USA) Utilizing plant microbes to improve crops $ 250M Series E Sep 2018 Deliveroo (UK) Delivering premium restaurant meals $ 385M Series F Sep 2017 Notable IPOs IPO Tilray (USA) Medical cannabis research and production $ 1.5B IPO July 2018 Meituan Dianping (China) Online retail including food delivery $ 53B IPO Sep 2018 Delivery Hero (Germany) Food ordering website € 4.4B IPO Jun 2017 Blue Apron (USA) Food ingredients and recipes delivered € 3.0B IPO Jun 2017 HelloFresh (Germany) Subscription service for premium quality food € 1.7B IPO Nov 2017 € 3,0B € 6,9B € 9,5B € 12,2B € 14,3B 2014 2015 2016 2017 2018E € 1,9B – € 1,0B € 9,1B € 49,5B 2014 2015 2016 2017 2018 YTD € 3,8B € 2,2B € 3,2B € 29,4B € 27,3B 2014 2015 2016 2017 2018 YTD Global VC investment in food tech Global food M&A Global food tech IPOs Source: Dealroom.co In Europe €6.5B in venture capital invested since 2013. Nearly half of that for five global food delivery leaders 5 Source: Dealroom.co Note: 2018 is based on Jan-Sept annualized. Top-5 delivery platforms: €3.1 billion invested ‘Next Generation’ food tech: €3.4 billion invested € 0,1B € 0,2B € 0,5B € 0,7B € 0,9B € 1,0B € 0,1B € 0,7B € 1,2B € 0,3B € 0,8B € 0,2B € 0,9B € 1,7B € 1,0B € 1,7B € 1,0B € 0,0B € 0,4B € 0,8B € 1,2B € 1,6B € 2,0B 2013 2014 2015 2016 2017 2018E Food tech investment (€B) Top-5 delivery platforms (€B) Following investment of €3.1B, five global food tech leaders emerged from Europe, worth a combined €21B 6 Source: Dealroom.co (€ 3,1B) € 8,8B € 21B Investment (2012-2015) Exit (IPO) Value today ‘10 € 1.9B ‘17 € 4.4B € 8B ’01 € 0.1B ’14 € 1.8B € 5B ’11 € 0.4B ’17 € 1.7B € 2B ’00 € 0.1B ’16 € 1.0B € 3B ‘12 € 0.8B -- € 2-3B 2.8x 7x Value creation 7 Source: Eurostat data and Dealroom analysis. 1. KANTAR. Food delivery received nearly half of food tech investment in Europe. However, delivery is only 1.5% of the total consumption market OPPORTUNITY INCUMBENTS INNOVATORS DRIVERS Delivery €21 billion value created -- § Convenience § Better apps § Incredible choice Restaurants 20x larger § Service innovation § Healthier options § Personalisation Groceries 37x larger § Online penetration is around 6% (10%+ in London, Beijing, Shanghai)(1) § Services like Amazon Prime and Glovo are re-setting consumer expectations Alcohol & tobacco 13x larger § Consumer focus on health § Smoking alternatives €2 trillion GMV food consumption in Europe Food delivery : - Just 1.5% of consumption - Received ~half of food tech investment (€3 billion) €0,4tn €1,1tn €0,6tn €30 billion Retailers 8 Source: KPMG and Dealroom analysis. And that €2 trillion European consumption market is part of a much larger global food value chain where a lot of innovation is emerging Primary Production Transformation Distribution & Consumption Input Farmers Traders Food companies Incumbents Global sales €500B €3 trillion €1 trillion €4 trillion Global: €6 trillion Europe: €2 trillion Innovators Key themes Gene editing Biologicals Marketplaces Big data integration Robotics Indoor farming Efficiency Transparency Shorter supply chains Alternative proteins Clean label Healthier food New brands On-demand Same day delivery Private label Next Generation Food Tech leaders emerging Next Generation Food Tech leaders emerging Food Delivery The next generation of European Food Tech entrepreneurs is gearing up for growth 9 Tropic Biosciences Develops high-performing commercial varieties of tropical crops $ 10.0M Jun 2018 Series A Genetic breeding ecoRobotix Manufactures robots that identify and remove weeds from farming crops € 9.0M May 2018 Early VC Farming robots Infarm Farming tech for grocery stores, restaurants, and local distribution centers $ 25.0M Feb 2018 Series A Vertical farms Solynta Hybrid potato breeding € 16.0M Nov 2017 Series B Potato breeding Nice Fruit Preserves the cellular structure and organoleptic properties of the fruit during the freezing stages € 35.0M Jul 2017 Growth Equity Freezing technology Agricool Technology to grow fruit and vegetables inside shipping containers € 8.0M Jul 2017 Early VC Innovative farming Protix Biosystems High-quality insect based ingredients € 45.0M Jun 2017 Late VC Insect-based ingredients M2i Life Sciences Design, formulation and production of complex molecules € 12.0M Jun 2017 Late VC Crop protection Agrilution A kitchen device that can grow vegetables and herbs € 3.8M May 2017 Series A Indoor farming Ynsect Transforms insects into a nutrient resource for agriculture € 13.8M Dec 2016 Series B Insect-based ingredients € 16M € 24M € 47M € 104M € 252M € 250M – 25 50 75 100 125 150 € 0M € 50M € 100M € 150M € 200M € 250M € 300M 2013 2014 2015 2016 2017 2018 Amount invested (€M) Number of rounds Source: Dealroom.co Note: 2018 is based on Jan-Sept annualized. Primary Production – Investment in Europe New brands and innovative food concepts emerging 10 Huel Nutritionally complete, powdered vegan food £ 20.0M Oct 2018 Growth Equity Powdered vegan food Allplants Makes and delivers Vegan meals £ 7.5M Sep 2018 Series A Vegan Simple Feast Makes and delivers vegetarian meals $ 12.0M Aug 2018 Early VC Healthy food box Mosa Meat The world’s first tissue cultured hamburger € 7.5M Jul 2018 Series A Tissue cultured meat Feed. Natural complete meals in the form of drinks or energy bars € 15.0M Jun 2018 Early VC Innovative food Innovafeed Sustainable way to produce protein € 15.0M Feb 2018 Early VC Agri-tech MiniBrew Smart beer brewing machine € 2.5M May 2017 Early VC Brewing machine BrewDog A craft beer brewery £ 100M Apr 2017 Growth Equity Beer brand XOLUTION Drinking products for increasingly mobile lifestyles € 45.0M Jan 2016 Early VC Resealable cans Food Transformation – Investment in Europe € 55M € 30M € 105M € 175M € 387M € 400M – 50 100 150 200 € 0M € 100M € 200M € 300M € 400M € 500M 2013 2014 2015 2016 2017 2018 Amount invested (€M) Number of rounds Source: Dealroom.co Note: 2018 is based on Jan-Sept annualized. And continued investment in innovative distribution & consumption platforms 11 Kolonial.no Norway’s largest online grocery store € 30.0M Aug 2018 Late VC Online supermarket Glovo On-demand mobile app that connects customers with independent local couriers € 115M Jul 2018 Series C On-demand app Tiller Systems Point-of-Sale solution for bars and restaurants $ 13.9M Jun 2018 Series B Restaurant Gousto Delivers perfectly measured ingredients to cook at home £ 28.5M Mar 2018 Late VC Home cooking FoodSpring Innovative sports nutrition products € 22.0M Mar 2018 Early VC Fit food Vivino The world's largest online wine marketplace $ 20.0M Feb 2018 Series C Wine supermarket Muscle Food Changes the way people buy healthy food online £ 10.0M Jan 2018 Early VC Healthy food MatHem Sweden's largest online food store SEK221M Dec 2017 Late VC Online supermarket Frichti Food delivery platform designed to connect consumers to restaurants € 30.0M May 2017 Series B Meal kits Picnic Online-only supermarket without delivery costs € 100M Mar 2017 Series B Online supermarket Distribution & Consumption – Investment in Europe € 28M € 141M € 377M € 440M € 605M € 640M – 50 100 150 200 € 0M € 100M € 200M € 300M € 400M € 500M € 600M € 700M 2013 2014 2015 2016 2017 2018 Amount invested (€M) Number of rounds Source: Dealroom.co Note: 2018 is based on Jan-Sept annualized. 28% 15%13% 11% 7% 6% 4% 4% 3% 3% 2% 2% 2% 1% 20% 17% 12% 7% 7% 12% 4% 9% 4% 2% 1% 2% 2% 1% Un ite d King do m Fra nc e Ge rm an y Sw ed en Ne the rla nd s Sp ain Sw itz erl an d Ita ly De nm ark Fin lan d Ire lan d Be lgi um No rw ay Po rtu ga l 33% 18% 15% 7% 6% 5% 4% 3% 2% 2% 2% 1% 1% 1% 26% 45% 8% 3% 1% 5% 5% 0% 0% 2% 1% 1% 1% 0% Unite d K ingdo m Ge rm an y Fra nc e Sw ed en Sw itz erl an d Sp ain Ne the rla nd s Ire lan d Fin lan d De nm ark Be lgi um Ita ly No rw ay Po rtu ga l UK, Germany and France lead, in line with venture capital. But Italy and Spain stand out by number of rounds 12 Venture capital, amount invested in Europe 2013-2018 Amount invested in Food Tech 2013-2018 By amount invested By number of rounds Source: Dealroom.co 13 A solid, local funding and partnering ecosystem for Food tech companies is shaping up in Europe Specialist VC Funds Big Food Tech (first generation) Incumbents Crowdfunding Generalist VC Funds Incubators & Accelerators A new generation of investors: specialist Food Tech funds Source: Dealroom.co 14 HQ Amsterdam/Boston Paris/Bologna Paris FOCUS Mainly Ag-tech Food tech and Ag-tech Mainly Ag-tech YEAR FOUNDED 2013 2018 2014 FUND SIZE $ 200M € 70M+ € 124M STAGE Series A/B in Europe & US Series A/B in Europe Series A/B in France NOTABLE LPs Rabobank, Fidelity EIF, Nestlé, bpifrance, Fondo Italiano d'Investimento Crédit Agricole, Groupama, bpifrance, Avril, Tereos INVESTMENTS + two investments not announced The first generation Food tech companies have become very acquisitive, to expand and consolidate their market Source: Dealroom.co 15 CORPORATE LOCATION (HQ) STRATEGIC FOCUS ACQUISITIONS & DIRECT INVESTMENTS Delivery Hero Berlin Market expansion & consolidation HipMenu, Hungry Group, Quiqup, Foodora, Rappi, Foodfly, Carriage, Hungryhouse, Foodpanda, ClickDelivery, Foodarena, e-food.gr, Yemeksepeti, Jidloted, DameJidlo, Pizza.de Just Eat London Market expansion & consolidation Innovative models (e.g. Skip) Hungryhouse, Pizzabo, Deliverex, Clicca e Mangia, Food2u, SinDelantal, Flyt.io, iFood, TouchBistro, SkipTheDishes, La Nevera Roja, Menulog, Takeaway.com Amsterdam Market expansion & consolidation Fooderena, Oliveira, BGMENU.com, Food Express, Ten Bis, Lieferservice, Lieferando Zomato Gurugram, India Restaurant discovery & reservations Mekanist, Gastronauci, Obedovat, Cibando, Lunchtime, Menu Mania, Sparse Labs, Runnr, TongueStun Elior Group Paris Restaurant/hotel management La Belle Assiette, PopChef, TouchAndPlay, Never Eat Alone, Lancer Hospotality TripAdvisor Needham, United States Restaurant booking Couverts, BestTables, LaFourchette, SeatMe, Eatigo Naspers Cape Town Food is major focus Delivery Hero, ESKY, iFood, Swiggy, FarmLogs, Movile Mail.ru Group Moscow Russia Foodmate, Delivery Club, zakazaka.ru, Instamart.ru Recruit Holdings Chiyoda, Japan Restaurant booking Quandoo, Treatwell, TrustYou Alibaba Hangzhou Asia Ele.me, Bigbasket, Yiguo, Sun Art Retail Group, Tokopedia The large Food and Agricultural companies continue to look for innovation to add to their platforms Source: Dealroom.co 16 CORPORATE LOCATION (HQ) STRATEGIC FOCUS ACQUISITIONS & DIRECT INVESTMENTS Carrefour Boulogne, France Organic food So.bio, Bringo, Quitoque Cargill Wayzata, United States Animal nutrition & Protein Memphis Meats, Pro-Pet Unilever Rotterdam, Netherlands Delivery, Direct-to-consumer Gousto, Chromatin, Sun Basket, Milkbasket Syngenta Basel, Switzerland Crop protection Abbott & Cobb, FarmShots, Nidera, Devgen, Phytech, Asilomar Bio, BioPhero, Greenlight Biosciences, AgriMetis, AgBiome, Agworld The Coca-Cola Company Atlanta, United States Non-alcoholic beverage Home Eat Home Michelin Clermont-Ferrand, France Restaurant tech Bookatable, Restaurantes.com, Le Fooding, Exotic Systems Archer Daniels Midland Company Chicago Farm management & Organic food Agrible, Harvest Innovations Diageo London Alcoholic beverage VinePair, Stirrings Metro Group Dusseldorf Restaurant tech & Distribution Lunchio, Coffee Could Nestle Vevey, Switzerland Delivery, Direct-to-consumer Freshly, Tails.com, Blue Bottle Coffee Source: Dealroom.co 17 Crowdfunding can be an effective platform to turn investors into brand ambassadors, compelling for consumer brands Key European platforms Non-European platforms Notable investments 18% 8% – 5% 10% 15% 20% 2013 2014 2015 2016 2017 2018 European Food Tech Europe Overall % of rounds with crowdfunding participation Generalist VC funds are hunting for the next Food tech unicorn Source: Dealroom.co 18 INVESTOR LOCATION (HQ) TYPICAL FIRST ROUND FOOD TECH INVESTMENTS LocalGlobe Early stage seed investor in London London Seed Taster, Menu Next Door, INFARM, WeFARM, Farmeron Point Nine Capital The Angel VC Berlin Seed Lemoncat Exits: Marley Spoon, Kitchen Stories, Cibando IndexVentures International venture capital firm London Series A Pets Deli, Just Eat, Deliveroo Exits: Zesty, Blue Bottle Coffee, Just Eat HV Holtzbrinck Ventures Leading German VC active throughout Europe Munich/Berlin Series A CaterWings, Everdine, EatFirst, Quandoo Exits: Quandoo, Delivery Hero Rocket Internet SE Incubates and invests in internet and technology companies globally Berlin Series A Pets Deli, Lemoncat, Chefclub, CaterWings, ShopWings Exits: Foodpanda, Foodora, HelloFood, Pizzabo, La Nevera Roja, Delivery Hero Balderton Capital The leading venture investor in the EU London Series A Simple Feast, Vivino, INFARM Exits: Bookatable, Medicanimal Target Global European wide life cycle investor Berlin Series A Lemoncat Exits: Foodfox, Delivery Hero, Mixville Sofinnova Partners VC specialized in Life Sciences, often lead role in round A financings Paris Series A/B Micropep Technologies, DNA Script, Agrosavfe Accel Partners Venture and growth equity firm London Series A/B OLIO, Deliveroo Idinvest Partners Specializing in direct investments and fund of funds investments Paris Series B Glovo, Frichti, Lunchr, DNA Script, M2i Life Sciences, Agriconomie Exit: Cerelia Business Growth Fund Helps Britain’s growing businesses by providing growth capital London Late VC Gousto, Muscle Food, Purity Brewing Insights Venture Partners Leading global private equity and venture capital firm New York Late VC HelloFresh, Delivery Hero Notable European exits (2016-2018) 19 Source: Dealroom.co COMPANY LOCATION (HQ) TRANSACTION ACQUIRER(S) SELLER(S) Delivery Hero Food ordering website Berlin € 4.4B IPO Jun 2017 - Point Nine Capital, Fabrice Grinda, Team Europe, TEV | Tengelmann Ventures, Hasso Plattner Ventures HelloFresh Subscription service that focuses on premium quality and ecological foods Berlin € 1.7B IPO Nov 2017 - HV Holtzbrinck Ventures, Investment AB Kinnevik, Rocket Internet SE, Vorwerk, Phenomen Ventures Takeaway.com The leading online food delivery marketplace in Continental Europe Amsterdam € 993M IPO Sep 2016 - Prime Ventures, Macquarie Group Tails.com Dog food delivered at your doorstep London £150M Acquisition Apr 2018 Nestlé JamJar Investments, Octopus Ventures, Slingshot Ventures, Draper Esprit Brewdog A craft beer brewery that produces bottled and canned beers Aberdeenshire, UK £ 113M Secondary Apr 2017 TSG Equity Partners Crowdcube, TSG Equity Partners Bookatable Global online marketing and real-time reservations services for restaurants London € 108M Acquisition Jan 2016 Michelin Balderton Capital, Wellington Partners, Kreos Capital Delivery Club A Russian online food delivery marketplace Moscow $ 100M Acquisition Nov 2016 Mail.ru Group AddVenture, Phenomen Ventures, Guard Capital, NJF Capital, Nicole Junkermann Marley Spoon Home delivery of recipes and ingredients to encourage home cooking Berlin $ 145M IPO Jul 2018 - Point Nine Capital, Global Founders Capital, Atlantic Labs, Lakestar, Klaus Hommels CAKE Pay restaurant bills instantly from your phone London $ 13.3M Acquisition Mar 2018 American Express Crowdcube Foodist Monthly gourmet food subscription Hamburg, Germany € 3.5M Acquisition Aug 2016 Ströer Media Andreas Brandt, Alexander Djordjevic, Ole Schaumberg, ProSiebenSat.1 Accelerator Niccolo Manzoni Partner Ivan Farneti Partner ■ We back Food Tech entrepreneurs for a healthier, more sustainable and more efficient food system ■ Five Season Ventures is the first VC fund in Europe solely focused on investing in early stage food technology companies Ivan Draganov Research Analyst ivan.draganov@dealroom.co Irina Anihimovskaya Research Analyst irina@dealroom.co Yoram Wijngaarde Founder & CEO yoram@dealroom.co ■ World-leading tech firms, investments 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