What better way to adapt to change than to be at the forefront of innovation and disruption by investing in a food tech startup? At least, that’s what venture capitalists have in mind.
As Adam Rothenberg from the venture capital firm BoxGroup points out, the term "food tech" in itself isn’t a "one size fits all" kind of category.
"BoxGroup has made a number of food tech investments to date which have been b2c models and represent unique distribution models or efficiency models in food tech," Rothenberg told Food Dive in an email. "The traditional grocery model is in flux and the consumer has unmet needs that are not satisfied by traditional retail grocery. We look for a strong brand and using technology to facilitate efficient distribution."
'Convenience is the key trend'
While food tech covers an array of different arenas, one thought is clear: the trend relates back to convenience.
“Whether through grocery delivery (a la Ocado / Instacart) meal kits (a la Hello Fresh / Blue Apron) or meal delivery (a la JustEat / Deliveroo) convenience is the key trend," Martin Mignot of Index Ventures said in an email discussion on the race to convenience. "People want to spend less time planning and cooking food and startups are leveraging the new mobile infrastructure (the fact that everyone, including couriers, now own smartphones) to offer highly efficient delivery options of fresh/hot food at low costs."
