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Why the food-tech industry offers extremely appealing investment opportunities centred on the concept of “high-tech food”
31. May 2023 | Medienmitteilung

Why the food-tech industry offers extremely appealing investment opportunities centred on the concept of “high-tech food”

High-tech food start-ups are driving the food industry’s decarbonisation efforts by inventing ways and technology to generate artificial proteins designed to replace meat, cow’s milk and eggs. Financing these start-ups provides attractive investment opportunities.

Some 270 years ago, the food-tech sector began to revolutionise the way food is produced and supplied. While initially emphasising agricultural mechanisation and food preservation, today, in the face of climate change, it focuses, most importantly, on decarbonising food production.

Once again, it is hundreds of laboratories and start-ups that are moving the topic forward with their discoveries, rather than major, established firms. The current situation resembles the early days of the internet and online commerce.

But the goals of the “high-tech food” domain are considerably more important for all of humanity – particularly developments that include lowering the consumption of animal products. Only a significant reduction in factory farming will result in compliance with the 1.5% target.

That is why scientists and food engineers all around the world are working to develop protein-containing goods. The emphasis is on “artificial meat”, but there are also advances to substitute cow’s milk and chicken eggs.

The toolbox of the relevant laboratories includes a wide range of biotechnologies. Some start-ups specialise in protein engineering, which is the computer-assisted design of complex protein molecules, while others work with bacteria and micro-organisms to create protein. In addition, animal cells are used on a large scale to grow meat.

Although the bulk of firms producing meat, dairy and egg alternatives are situated in the United States, Israel is also home to some of the most innovative companies in this industry. Many of Israel’s “clean tech” start-ups are situated in the country’s innovation hub. SuperMeat, Amai Proteins and Remilk are a few of the examples. Remilk, in particular, has attracted a lot of worldwide attention. The company manufactures animal-free milk proteins, which are already widely used in the cheese industry.

The sector is evolving quickly. Start-ups that accomplish outstanding outcomes with little staff and basic equipment become publicly traded firms within months or raise unfathomable amounts of venture funding.

Venture capital funds rarely provide viable investment options for institutional investors, such as those whose capital investment is governed by the German Investment Ordinance. An alternative to traditional participation in VC funds, through which investors can profit from the performance of several start-ups, is the securitisation of participations according to Luxembourg standards, which is offered as a service by Chartered Investment via its OPUS platform.

Chartered Investment has established solid contacts in the Israeli start-up sector through prior securitisations of Israeli venture capital, providing investors with not just experience in constructing such a product, but also access to innovative new companies.