COVID-19 US$6.4m fund to propel NPD and help agri-tech start-ups thrive
07 Aug 2020 --- Protein from upcycled rapeseed waste, temperature-sensitive labeling, automated kitchen tech and a natural preservation alternative, are among the standout F&B concepts set to earn a share of EIT Food’s €5.4 million (US$6.4 million) investment fund. The European financing initiative plans to target 13 “high-impact” agri-food start-ups during the COVID-19 pandemic. At such a time when funding is challenging to come by, the consortium aims to help invigorate the R&D climate for newcomers with mainstream potential.
“Some sectors suffer from a reduced level of sales activity and so less money is spent on R&D. There is a shift in where the money goes with a focus on finishing running projects (quick wins) rather than starting new (risky) ones. Money is also required to supplement COVID-19 activity such as in-house rapid testing to secure food safety, remodeling HACCP concepts, etc.,” Thomas van den Boezem, Business Creation & Investment Manager at EIT Food, tells FoodIngredientsFirst.
Start-ups will play a critical role in the European post-COVID recovery effort and could provide the solution to the future challenges faced by society. Investments like this are seen as a vital lifeline to many food and beverage innovators.
Start-ups will play a key role in the European post-COVID recovery effort, according to Dr. Andy Zynga, CEO of EIT Food. As part of the EIT’s Crisis Response Initiative, the COVID-19 Bridge Fund directly contributes to the European Union’s response to the pandemic, which totaled €60 million (US$71 million). A total of €4.1 million (US$4.9 million) will come from the EIT’s Crisis Response Initiative, and €1.3 million (US$1.5 million) of additional funds has been provided by EIT Food to give much-needed support to ventures throughout the pandemic.In July, EIT Food was awarded €6.17 million (US$7.3 million) in the COVID-19 Rapid Response Call for Innovation, with the purpose to develop solutions specifically targeted towards the crisis. The total available amount awarded for both funding opportunities by EIT is €10.3 million (US$12.2 million).
Benoit Buntinx, Director of EIT Food Business Creation, adds: “Start-ups have faced an increased level of uncertainty and market volatility during COVID-19 and our bridge funding will ensure that they can continue to thrive.”
Ventures with mainstream potential
Two ventures with large mainstream potential are Mimica and Eatch, according to van den Boezem. “Mimica developed a temperature-sensitive label that allows consumers to assess the freshness of their product in a much more reliable way than current expiry dates printed on those products. This will prevent consumers from throwing away products that are still safe for consumption.”
“Eatch developed the world’s first fully automated kitchen that will offer consumers a personalized, healthy and tasty ready-to-eat meals for the price at which consumers currently purchase unhealthy fast-food meals. These automated kitchens can be placed in the likes of canteens and hospitals, or be suited to home delivery.”
Another selected venture is NapiFeryn – a Polish biotech start-up which extracts protein from rapeseed oil production waste streams, providing a sustainable alternative to animal-derived proteins. The protein is as nutritional as plant-based market leader soy, creating a product that is more sustainable and affordable for consumers. The investment provided by the COVID-19 Bridge Fund will help to execute its ongoing research and development activities, leading to commercialization of novel, plant-based and functional food ingredients derived from rapeseed.
“Our technology to extract protein from rapeseed has the potential to transform the protein market by reducing food insecurity and increasing plant-based eating habits of consumers around the world. This funding is vital, enabling us to continue our research and bring us closer to the introduction of rapeseed proteins to global markets,” says Magdalena Kozłowska, Co-Founder of NapiFeryn.
Antofénol, another beneficiary of the COVID-19 Bridge Fund, is a French biotechnology company dedicated to the development of a sustainable and healthy replacement for chemical preservatives on fruits and vegetables, which are used to extend shelf life and preserve quality.
Mimica has developed a temperature-sensitive label that allows consumers to assess the freshness of their product in a much more reliable way compared to expiry dates printed on those products. “Our technology allows us to extract agricultural waste from vineyards and transform it into a chemical-free product capable of replacing toxic substances that sit on our fruit and vegetables. The benefit is twofold – we replace molecules which could be harmful for the environment and health, while also recycling waste by transforming it into a product that can be used by the agricultural sector,” says Fanny Rolet, Founder of Antofénol.
A pipeline of 74 companies from 19 countries – including Spain, France, Belgium, the Netherlands, Israel, the UK and Poland – have been closely analyzed, of which 13 were chosen to be part of EIT Food’s investment portfolio. The 13 selected start-ups are: Agritask (Israel), Alberts (Belgium), Antofénol (France), Consentio (ES), Eatch (NL), Epinutra (NL), Feltwood (ES), Foodpairing (BE), Food Sourcing Specialists (ES), Mimica Touch (UK), NapiFeryn (PL), Phytolon (IL) and Sencrop (FR). More details on the selected start-ups can be found below.
F&B funding during COVID-19
The latest funding announcement comes on top of other spearheaded initiatives from across the whole EIT Food partner community to support the European food system through the challenges brought around by the pandemic. This has included the launch of a new Robin Food soup brand in Belgium with EIT Food partners that is using fresh surplus vegetables from farmers and aims to distribute 20,000 liters to vulnerable families through food banks and social grocers.
Last month, EIT Food funded five European companies and research institutions to build a diagnostic platform to improve the on-site testing capacity of the food industry. The platform will help food companies to quickly detect the presence of the Coronavirus on food processing surfaces.
For more pandemic-related headlines and guidance to navigate your business through this challenging period, please follow FoodIngredientsFirst’s COVID-19 updates.
By Benjamin Ferrer
