Nordic Foodtech VC invests in early-stage startups with unique technologies to seize the planet-sized business opportunities in creating a healthy, resource-efficient, and resilient food system.

The fund continues its successful recipe of working together with universities and research institutions to bridge the gap between scientific discovery and concrete industrial applications. The second fund is backed by institutional investors such as Tesi and Elo Mutual Pension Insurance Company, and by food industry stakeholders such as Valio Pension Fund and Heino Group.

“Being able to raise funds in the current complex market is not an easy feat. However, it’s clear to us and our investors that the current global food system is largely inefficient and not adequate to meet the needs of the planet or its people. As a specialist investor, we’re here to back the startups turning breakthrough science and solutions into real-world food system impact and solid returns. Food security, health and nutrition, and sustainable food systems will be catalysts for this sector,” says Louise Heiberg, Partner at Nordic Foodtech VC.

Nordic Foodtech VC’s first fund successfully invested in 18 companies from the Nordics and Baltics, including Finnish Enifer, Kuva Space, Danish Chromologics, Evodia, Estonian ÄIO, Swedish Melt&Marble, and Ironic Biotech. The whole portfolio tackles significant industry challenges by producing affordable protein ingredients, functional fats and oils, natural food colours and aroma compounds, capturing nutrients from wastewaters and recycling waste streams into fertilisers, and by providing essential insights from fields and the environment with hyperspectral imaging from Earth's orbit.

Despite the downturn in VC investments that has affected the food sector as well, the fundamental need for solutions in the food system has not changed. Nordic Foodtech VC’s strategy has been to invest in companies that solve business-critical problems for and together with the industry. With universities and research institutes having limited access to options for early-stage risk capital, Nordic Foodtech VC plays a crucial role in helping companies to spin out successfully.

“New technologies contribute significantly to sustainable food production. Nordic Foodtech VC is a unique player in the foodtech sector in the Nordics with excellent prospects for growth. The team has strong expertise both in research, and in the commercialisation of innovations. Nordic Foodtech VC is therefore an excellent source of venture capital for early food tech companies, also in Finland,” explains Peter Platan, Investment Director in Tesi's Fund Investments team.

The fund will continue to collaborate closely with universities and research institutions, especially in the Nordics and Baltics, to find the best ideas, teams and technologies that have potential for global scaling. Nordic Foodtech VC will continue to lead the early seed and pre-seed rounds in the Nordics and Baltics and co-invest in the rest of Europe with ticket sizes ranging from a few hundred thousand euros up to €2 million. The fund will hold a reserve for significant follow-on investments, too. 

With the first closing of the second fund at €40 million, Nordic Foodtech VC doubles its total capital managed. The fundraising will continue towards the €80 million target for final closing.

“We invest in planet-sized business opportunities in bite-sized chunks. With our whole team’s experience and expertise in investing in this sector, we are able to spot early on the startups that are solving tangible enough problems to generate good returns within a fund cycle. We are excited to continue supporting both existing and new portfolio companies in their growth paths that all together build towards a food system that fits in the planetary boundaries,” concludes Lauri Reuter, Partner at Nordic Foodtech VC.

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