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food tech investment

December 20, 2016

Food AI Startup Gets A Boost From Bono

The celebrity turned investor trope isn’t a new story; from Leo DiCaprio to Magic Johnson, the rich and famous have often turned to the tech world either as an investor and sometimes as a founder. Recently, we’ve seen some high-profile investments in the food tech space – including actor Ashton Kutcher and his investment in Keurig-like juice startup Juicero.

The latest celebrities to jump on the food tech train are none other than U2 frontman Bono and the band’s beloved drummer The Edge. The lucky startup? Irish AI and DNA food startup Nuritas, a company working to find combinations of elements within our food and develop supplements that could act as cures to common diseases.

Nuritas joins a wave of companies launching with the plan to study and use DNA analysis to help people live healthier lives. Startups like Habit take a similar approach but use biological data to deliver customized health and dietary plans for users, tackling their nutritional needs at the molecular level.

Nuritas is currently awaiting patents for its technology which uses a combination of artificial intelligence and DNA analysis to dive deep into billions of molecules and extract components that can benefit human health. The company calls these compounds “bioactive peptides” and claims they can be used to manage a host of issues, including inflammation and potentially blood sugar levels in diabetics.

The U2 frontmen are joined by CEO and founder of Salesforce Marc Benioff along with tech entrepreneur Ali Partovi as early investors in Nuritas’ seed round of funding. Bono is no stranger to successful tech investment, having poured money into both Facebook and Dropbox in their early days.

Artificial intelligence is one of the hottest areas of tech – 2016 was a huge year for machine learning and the technology is finding its way into every vertical. The potential for AI influence on our food – from the ways we eat and cook to the types of food we consume along with the commerce, storage and healthcare implications that accompany these changes – is enormous.

Read more about Nuritas’ plan for expansion and the investment from U2.

November 2, 2016

Tea Startup Teforia Gets $12 Million Infusion In Series A Round

Last year at the inaugural Smart Kitchen Summit, there was a small team gathered around a high-top round table pouring delicious tea for Summit attendees. Their startup, Teforia, was still relatively unknown, having officially introduced itself only a week earlier. A few months later, Teforia announced a $5.1 million seed funding round and began the work of evangelizing the magic its technology was attempting to bring to tea drinkers everywhere. Accepting around 500 pre-orders to early backers, the company is now about to start early shipping and has just announced a $12 million Series A round led by Translink Capital.

Teforia’s premise is based on a propriety technology and sleek design. Using what’s called the “Selection Infusion Process,” users can customize their tea’s caffeine levels, antioxidant levels and flavor profiles. Teforia’s infuser will know exactly the right brew time and temperature and the result is a unique twist on an ancient drink.

The company has enjoyed early success in part based on founder Allen Han, who in a previous life was one of the designers behind the original XBOX. A trip several years ago to Asia and an excellent cup of tea led Han to explore the niche beverage industry and discover a significant lack of innovation or modern investment.

“…the $90 billion dollar global tea market largely consists of commercialized brewing methods and treatments. Most tea drinkers don’t know what they’re missing, so I wanted to create a way to perfect the process of brewing tea while honoring its tradition.”

Teforia’s device uses a pod-based system, made popular first by Keurig but then replicated by many modern beverage machines. The difference in Teforia’s model lies in the customization features. The pre-packaged “Sips” are filled with gourmet teas that can be “read” by the Teforia infuser and the companion app allows tea drinkers to personalize infusions of any loose-leaf tea to their preferences.

Teforia is banking on the continued popularity of tea around the globe, but particularly within the Millennial generations. While older generations typically prefer coffee, surveyed Millennials drink tea and coffee equally – and while the company is currently only shipping in the U.S., the opportunity abroad may be even bigger. Jay Eum, co-founder and managing director, Translink Capital commented, “As the tea market continues to grow globally, we know that as the company gears up for a successful launch in the U.S., that will only be the beginning. We believe the opportunity for the company could be huge in Asia where tea is deeply integrated into the culture.”

The startup’s Series A round included participation from returning investor Upfront Ventures and Lemnos Labs along with new investment from Mousse Partners and Correlation Ventures, bringing total funding to date to over $17M.

November 2, 2016

Hands On With The Nima Gluten Free Sensor

After being diagnosed with an autoimmune disorder over a year ago, I dove into researching how I could be proactive. What kinds of vitamins, foods, exercises could I take on to stave off the effects of the disease and remain a healthy thirty-something mom with a busy job and personal life? It didn’t take long to discover that things like gluten and dairy were among the top triggers of inflammation in the body. I began the process of removing them from my daily diet.

Dairy was pretty easy, although many packaged foods have hidden dairy inside. But the labels are usually clear. Even dining out wasn’t too bad – restaurants usually have several non-cheese/butter/milk options from which to choose with some exceptions (every try to order a cheese-free dish from an Italian restaurant? Don’t bother). But gluten? Trying to find totally gluten-free foods on the go is hell.

But food labeling has gotten so much better, you say. My grocery store has a whole aisle of gluten-free foods! Sure, but as most of us who avoid gluten know, it’s much more complicated than that. Gluten is a hidden ingredient, a mixture of proteins found in wheat and related grains that give food an elastic, dough-like consistency before cooking or baking. And even foods that don’t naturally contain gluten can have gluten on them if they are made, produced, cooked or shipped in a place with other products that contain gluten. And how can you really tell? If a label or menu say “gluten-free” – what choice do you have other than to believe them?

That’s exactly the problem the folks at Nima are trying to solve. Their flagship product – a small, portable device with insertable cartridges – looks like just another tech gadget. But the idea behind it and the problem it’s solving is pretty revolutionary. So if I’m out to eat with friends, and a dish is labeled GF, or nothing is labeled GF but the waiter assures me they can make a certain dish GF, all I have to do to be confident in this is pop a sample of my dish into the Nima cartridge. Nima can sense even tiny amounts of gluten – 20 ppm or more – in a little over 2 minutes.

At the 2016 Smart Kitchen Summit, I got to sit down with Carla Borsoi, Nima’s VP of Marketing and try out a Nima sensor. I had just finished eating lunch provided by our catering team – a grilled chicken salad and fruit. At first glance, there was no obvious source of gluten or dairy on the salad, although the chicken had a crust on it that looked like it could have been breading. I did eat it (it was the first time I had eaten all day!) but I wondered. When Carla handed me the Nima cartridge, I chose to break off a small morsel of the chicken closest to the crust and pop it in the device.

nima-at-sks

The process is incredibly simple – each device comes with a few disposable cartridges that are inserted into the machine for testing. It fits about a dime-sized portion of food, liquid or solid and contains the chemicals needed to interact with gluten and detect the protein in your food. In fact, the chemistry used is actually a proprietary antibody developed by Nima co-founders Shireen Yates and Scott Sundvor. Once the cartridge is in, the device gets to work. A little over two minutes later, a little smiley face popped up, indicating no gluten present. So my lunch had been safe and GF after all. I felt pretty relieved, but also quickly recognized how powerful a device like this could be for people with food allergies and sensitivities beyond gluten.

I talked with Nima advisor and food tech VC Brian Frank about this later in the day. “What is compelling about Nima, to me, is that they’re unlocking secret world of my food, giving me information about what’s on my plate. Is it good? Do I want to eat it?” Frank explained the movement to eat gluten, dairy or soy-free foods has grown alongside a broader desire for consumers to know what’s in their foods. And the infrastructure that Nima’s developing isn’t limited to gluten.

“There’s no reason it can’t be used for dairy or peanuts and there’s nothing stopping them from going to pathogens either,” he added. In other words, if there’s something there that can be detected, it’s possible the Nima form factor could be used to detect it.

It’s not hard to see why Frank and others in the food tech space are interested in Nima and their potential. The connected world gives us access to information about so much of our lives – we can stay in touch with friends and family, keep an eye on our homes, find out about the weather outside, the traffic, the best prices on goods and services. And there’s certainly been a movement to give us better information how to eat healthily and ways to access food in easier and more convenient ways.

But the food molecular sensor market is as a whole is still in its early days and in general hasn’t always seen success. Scio, as an example, launched on Kickstarter two years ago and dazzled at TechCrunch Disrupt with its portable molecular sensor. The project raised $2.7 million in funding and promised to use IR-spectroscopy to deliver information about what was in various foods, plants and medicine. The marketing video shows a guy wandering a grocery store, scanning a variety of food products, even the leaves on a tree outside, and receiving deep molecular information about each of them. Compelling, right?

Though not entirely based on smoke and mirrors, the promise of this product almost seemed too good to be true (with a Theranos-like vision). Fast forward to 2016, the company is currently in a patent dispute and shipped its product to early backers without telling them that for it to be actually useful, they’d need to purchase a $250 developer’s kit. And then there are other issues with broad-spectrum technology like Scio, relying on a database that needs to be continually updated to be useful and trying to give information about such a wide range of things.

The Nima sensor has yet to ship, but it stands to reason that their focus on one molecule analysis at a time as opposed to a universal sensor might be a better approach. And though Nima doesn’t rely on a database to give user’s information about their food, their app does give them the ability to record the information they find out about their food in restaurants, creating a sort of Yelp reviews for food labeling accuracy and friendliness to gluten, dairy and other allergen sufferers.

Scio, Nima and other food sensors are coming to market at a time when demand for that information and healthy food alternatives are higher than ever. Analysts predict that dairy alternatives will be a $19.5 billion market by 2020 and the GF label can be found on mainstream labels across the grocery aisles, even on most Cheerios’ boxes. According to a survey from Innova Insights, 91% of consumers believe that foods with recognizable ingredients are healthier, proving that even consumers who don’t have dietary restrictions want to know more about what’s inside their food and how it will impact their health. But inserting tech into the equation to help with that can be tricky.

“Food tech is hard,” commented Frank, “You’re asking people to change or adopt new behaviors, and that’s not a small thing. Tech that scratches the right itch at the right time – that’s what drives success.” When I mentioned Nima to other gluten or dairy free friends, there was a good amount of intrigue. But the question I got asked most?

Where can I buy it?

The Nima sensor will come out later this year – and you can sign up for updates on their website. We’re hoping to get our hands on one for The Spoon – stay tuned.

October 27, 2016

Campbell’s Soup Co Invests In Food Tech Startup Aimed At Nutrition And Wellness

Campbell’s Soup Co. is arguably one of the most forward-thinking food giants in the industry today, at least when it comes to food tech investment. Earlier this year, Campbell’s announced the creation of Acre Venture Partners, the VC arm it plans to use to “aggressively participate in the disruption in food trends.” The fund includes $125 million to invest in startups that are looking at new approaches to food growth and development and using technology and innovation to change the food industry.

This week, Campbell’s announced its investment in Silicon Valley-based tech startup Habit. Habit is a newly launched company that will deliver a “complete personalized nutrition solution” based on factors like someone’s biological makeup and metabolism. The CEO of Habit, Neil Grimmer, is also the founder of Plum Organics, a company that he sold to Campbell’s back in 2013. Despite having the VC fund, Campbell’s invested directly in Habit and is the startup’s sole funder, according to a Habit spokesperson.

The company will deliver a testing kit to users and together with the app, users are instructed to gather DNA samples to ship to their certified testing lab. The data collected is combined with the user’s reported lifestyle and personal goals and thrown into their priority algorithm known as the Nutrition Intelligence Engine. The algorithm spits out recommendations for what to eat from registered dieticians and a wellness guide along with fitness goals.

But the company doesn’t just stop at recommendations – they’ll also ship you a Habit meal kit, based on your personal nutrition blueprint and give you access to certified wellness coaches to help you meet your goals.

“The entire food industry is being transformed by the fusion of food, well-being and technology,” said Denise Morrison, Campbell’s President and Chief Executive Officer. “Habit is well positioned in this wired for well-being space and poised to lead the personalized nutrition category.”

Meal delivery is a crowded space within food tech, but the areas of food data, transparency and nutrition are growing, and the combination of the two is a unique model. There are a lot of questions about how Habit – and perhaps Campbell’s, as its major investor – might use that data and how willing consumers are going to be to give it up so freely. But having deep, biological insight into what types of foods your body needs to be healthy is a pretty compelling message. Habit is currently collecting interest via a waiting list, and promises to start shipping in beta in January 2017.

Read more about Habit and Campbell’s investment.

August 14, 2016

Food Venture Firm Raises $42 Million To Advance A New Food System

PowerPlant Ventures, a year-old venture firm supporting plant-centric companies that deliver better and more sustainable nutrition announced the closing of a $42 million fund. Aimed at improving the global food system, the fund’s goal is to leverage the power of plants to support the next wave of better-for-you food companies and brands.

The firm was founded in 2015 by Mark Rampolla, founder of ZICO Coconut Water, which was acquired by Coca-Cola in 2013 along with Kevin Boylan and T.K. Pillan, co-founders of the largest vegetarian restaurant chain in the U.S. and Dan Beldy, former Managing Director of Steamboat Ventures, Disney’s VC arm. Powerplant Ventures plans to advance a portfolio of emerging companies across the intersection of food and technology and work with companies that are focused on impacting the global food system with transparency and sustainability.

Our Take: The food business right now is an investor’s dream: a multi-trillion dollar industry in the middle of some major disruptions. From food shortages and unsustainable food production methods to major innovation happening around food science and technology to generational demand for healthier foods to eat and easier and faster ways to eat them – there’s opportunity at every turn. PowerPlant Ventures wants to invest in companies that are tackling several of these core problems using plant-centric solutions.

Why plants? “Plant-based food companies are changing the world by providing better nutrition delivered in more sustainable and ethical ways,” commented Mark Rampolla, Co-Founder of Powerplant Ventures. The firm and its startup fund will look to tap into the demand created by millennials and younger generations for healthier, more transparent food sources and look for companies crafting efficient solutions that could help solve growing global food shortages. The fund’s initial investments include companies in both those categories, including organic online grocer Thrive Market and cold-press juicer startup Juicero. Food delivery might currently be netting the biggest slice of the food tech investment pie, but healthy and sustainable food investment is catching up.

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