Among people steeped in the food space, there is a lot of technology that they find truly exciting. But cell-based meat, compostable plastic, massive smart greenhouses and meat alternatives made out of unconventional sources don't exactly measure up in terms of investment capital to the things some of the bigger tech and healthcare players are dreaming up.
Ali Morrow, a principal at Astanor Ventures, said the past year has been more of an affirmation for the firm's investment strategy. "People care more about where their food comes from. They want more trusted sources of food. They want food that is enabling of human health," Morrow said. "There's a greater understanding of the fragility of the food system, and those are all points that certainly our firm and our investments were founded upon, so it's been a magnifying glass to that."
Morrow said that means moving Astanor's focus further up the supply chain to the source of food, rather than companies in the manufacturing business. Some of these include newer and more unique technology to aid food production on the farm. The firm is also interested in "generation two" of plant-based foods — companies that go beyond simply trying to replace animal with plant products, and are trying to find new ingredients and processes that are better from a nutritional and sustainability standpoint. It is interested in companies trying to find new and functional fats, as well as those focusing on ocean regeneration and sustainability.
S2G Ventures, which invests in agriculture technologies, food companies and supply chain tech, is focusing on gaps in its portfolio. Krishnan said the firm is very interested in new solutions for the supply chain, as well as developers of plant-based fats and lipids. It is also investing in robotics to work in next-generation concepts like vertical farming.
"Each of these sub-verticals we're sort of feeling out where there's a friction and a problem set that we'd like the entrepreneur and startup community to solve," Krishnan said.
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