By Brett Brohl, Managing Director of the Techstars Farm to Fork Accelerator
Innovation in the food system continues to grow in interest for entrepreneurs, investors, and enterprises. That includes us here at Techstars Farm to Fork Accelerator in partnership with Cargill and Ecolab where I serve as Managing Director. 2020 put a magnifying glass on several challenges facing big food. Many of these challenges have existed for years, but the impact of COVID-19 brought them to the forefront of many stakeholder’s minds, from consumer to enterprise. There are five key areas of interest for us as we look forward into 2021: Sustainable Food Systems, Future of Food Retail and Food Service, Compliance, The Messy Middle and FinTech in Food,
The impact of the food system on the planet is tremendous. Without adapting the food system we won’t be able to sustainably feed the world’s growing population in the very near future. Additionally, the food value chain has a significant impact on the speed and severity of climate change. The opportunity for impact driven food startups are not limited to helping the world; there is significant financial value that entrepreneurs can drive.
Core areas of interest:
Alternative packaging & plastics
Biotechnology as it relates to food inputs, ingredients and proteins
Carbon mitigation and markets from farm to manufacturing to logistics
Energy reduction in food enterprises from manufacturing to farm
Water quality and conservation technology from farm to industrial manufacturing
Prior to COVID-19, the way consumers found, purchased and consumed food was already changing. Ghost kitchens prepping for food delivery were gaining momentum and online grocery was becoming more and more popular. The virus came in and essentially dropped a bomb on food retail, leading to more than 100,000 restaurant closures and grocery positively exploding. All while an entire trillion dollar industry, food service, essentially went to zero overnight — across the planet. What does the future hold? I’m not sure, but I do know it is an amazing time to innovate in the space.
Core areas of interest:
Robotics
Labor Optimization
Consumer Experience
Food Safety and Spoilage
Restaurant Tech
Food Vending
There are so many instructions, rules, regulations, best practices, prescriptions, and other things out there. But most compliance in the food system is still managed with pen and paper. It is inevitable that there will be mistakes, accidents, miscommunication, confusion, and even intentional non-compliance. When mistakes get made there can be huge safety, environmental and economic impacts.
Core areas of interest:
Food Safety
Brand Standards
Customer Safety
Employee Safety
Environmental Practices
Animal Health and Welfare
This bucket has been core to our food tech investment thesis for 3 years running. It isn’t always sexy, but there continues to be a tremendous amount of opportunity for innovation in the manufacturing and logistics portion of the food value chain.
Core areas of interest:
Innovation for Food Manufacturing
3d Printing
Efficiency
Robotics
Supply Chain Flexibility & Streamlining
Data capturing, management and leveraging
From farm to retail innovation, growth and opportunity is often hampered by expensive or inaccessible financial products. I believe that many startups in the food system have an opportunity to combine their users and data to create innovative financial solutions that will help modernize food.
Core areas of interest:
Innovations in Trading
Alternative Financing Opportunities
Payment Processing
These five buckets represent our core areas of interest for our 2021 program. Keep in mind that just as the world is constantly changing, so is our investment thesis! At the end of the day we want to invest in great founders.
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