Early stage VC firm FoodLabs raises third fund of €105M (sifted.eu)

Berlin-based venture capital firm FoodLabs has successfully raised its third fund, securing €105 million to invest in early-stage food tech startups across Europe. Established in 2016, FoodLabs is dedicated to backing both software and hardware innovations aimed at fostering a healthier and more sustainable food industry. Notable portfolio companies include Formo, a fermentation startup producing animal-free cheese, and Klim, which focuses on regenerative agriculture. Despite a challenging fundraising landscape for sustainability initiatives over the last two years, FoodLabs sees the food sector—one of the largest and least digitalized industries globally—as a prime area for investment. The firm plans to deploy the new funds across three key areas: agriculture, food security, and health. In agriculture, FoodLabs is particularly interested in combining AI with machinery to enhance crop yields while reducing fertilizer use. They have already invested in companies like Voltrac, an autonomous tractor technology, and DAF, an agri-fintech providing loans to farmers. Their focus on food security includes exploring underutilized plant species and innovative protein sources, while the health segment encompasses mood-enhancing ingredients and immune support supplements. With backing from a diverse investor base that includes well-known brands like Bitburger and Nestlé, FoodLabs is positioning itself to tackle significant global food challenges through technological advancements.