Webinar Recap: The Future of Food and How Changing Tastes are Altering the Entrepreneurial Landscape
Earlier in July, Biocom hosted a webinar focused on the food tech industry and its investment climate titled “The Future of Food: How Changing Tastes are Altering the Entrepreneurial Landscape.” Discussing the revolutionary changes in the food science industries which are impacting the ways consumers as well as CEOs and investors are directing their resources were Priti Youssef Choksi, Norwest Ventures; James Joaquin, Obvious Ventures; Jay Karandikar, New Crop Capital; and Aylon Steinhart, Eclipse Foods. The panel was moderated by Slone Partners President Tara Kochis-Stach and James Huie, a corporate and securities partner at Wilson Sonsini Goodrich & Rosati.
The following topics were discussed:
The State of Food Science: During a brief but rich state of the union surrounding the investment opportunities and the future of food, Nate Crosser with The Good Food Institute shed light on the fact that alternative proteins are a highly transformative sector, but one that remains in its infancy as an industry. Alternative proteins have the ability to disrupt an animal agriculture industry that presents numerous harms, including its production of 14.5% of all greenhouse gas emissions, as well as its position as the number one user of freshwater on the planet.
The Investment Landscape: FoodTech has seen rapid investment growth in alternative proteins. In the first half of 2020 alone, the industry has already surpassed its total 2019 investment, but much more is needed. To add context, over $2.65B was invested in cannabis in 2019, 2.5 times more than alternative proteins, per Pitchbook. But again, while the industry is rapidly growing, we’re at the very beginning of this wave of food, which has the long-term potential to replace meats the way cars replaced horses in the 20th century.
Company Flavor: When it comes to predicting specific company outlooks, insights start with the consumer. Aylon noted that his dairy-free dairy company, Eclipse, is driven by how people make their food purchasing decisions. People make their buying decisions based on taste, price, and convenience. He determines success on how well they can hit that trifecta and create a taste to make their product indistinguishable from its dairy counterparts.
On Leaders: All panelists agreed: the food tech space produces founders that are passionate like no other. Their passions are often grounded in personal backgrounds. Priti noted this is all the more reason to look for leaders who are willing to hire above themselves, to build a company of giants rather than dwarves; to bring in people willing to play nice with each other, safety organizations and regulators to use their passion to push the industry as a whole forward.
Said James J.: “We care a lot about purpose, and we see that a lot in the food space. The food-climate nexus, what we eat is so tied to the climate mission. We saw it with Beyond Meats and Miyokos.” James looks for a strong moral-ethical compass. Where Silicon Valley began with a “move fast and break things” approach, it did, in fact, break a lot of things. “You can’t break those things in food,” he said. “You have to think about your food stack and ethical responsibility.“
Coronavirus’ Industry Impact: Like every industry, coronavirus has significantly impacted flow. Said Priti, COVID-19 has forced the industry to double down on food safety and be super conscious about supply chains—where does our food come from? However, their investment hasn’t really changed. “Moving fast without having to meet in person was already a practical strategy for us,” she said. “Things might take a bit longer, but the work needs to be done, and from that standpoint its been business as usual.”
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