The Synthesis team is back at HQ following a whirlwind trip to the West Coast for Future Food-Tech and to visit our portfolio companies. Reflecting on our experiences over the past few weeks, here are some key takeaways:
💲The start-up environment continues to be extremely capital constrained, however for food technology, there is broad consensus that the downturn is cyclical, rather than structural. The planet needs food system solutions more than ever before, and stakeholders across the capital markets and corporate ecosystem realise this.
👩💼 Corporates across the food sector are active and showing renewed interest in the potential for technology solutions, and how they can play an important role as incumbents. We see examples of companies across the supply chain and across geographies who are driving forward meaningful collaborations with private sector innovators.
💡 Innovation is continuing to be focused in the upstream of the value chain, where we see significant breakthroughs in enabling technologies which will drive better outcomes downstream in terms of better, cheaper, and healthier products for consumers. Some of the most compelling enabling technologies are those that impact multiple sectors of the bioeconomy. An increase in government and philanthropic funding will help to derisk and accelerate the R&D and scale-up of these technologies.
📈 For all founders, narrowing focus to the core value proposition of their businesses is acutely important. Efficiency and cutting unnecessary cash burn is key, and among the top-of-mind issues for founders are: finding creative ways to get into market faster to earn revenue and to start gaining real customer feedback; how to grow with a capex-light approach; and how to show a realistic path to achieving positive free cashflow. The companies that can make it through this difficult time in the industry will have stronger foundations and higher potential as a result.
Thanks #FutureFoodTech team for another great conference!
#tech #innovation #founders #startups
Costa Yiannoulis, Rosie Wardle, David Welch, Shravan S., Shivani Oberoi, CFA, Nihaar U., Matt Gill, CFA, Triplebar, Savor, Hyfé, Arkeon