First Nordic fund to support technology companies renewing the food system
Nordic FoodTech VC is the first fund in the Nordics to invest explicitly in the future of food. It is investing in dozens of Nordic and Baltic companies that are renewing the global food system.
“Nordic FoodTech VC is targeting early-stage technology companies engaged in making the food chain more resource-efficient and ecological, producing food in new ways, or promoting healthy eating,” says Nordic FoodTech VC’s founding partner, Mika Kukkurainen.
The fund will begin investing with capital of €24.55 million. The initial investors are Business Finland Venture Capital Oy, Valion Eläkekassa, Elo Mutual Pension Insurance Company, Tukkuheino Oy, Maatalousyritttäjien Eläkelaitos, HKScan Oyj, Tradeka-sijoitus Oy, OP Life Assurance Company Ltd, Pohjola Insurance Ltd and Nordic Plus Group Oy. The overall target is to raise €50 million of investment capital.
Food technology – an attractive investment
Food production and consumption are under huge pressure to change. According to the UN, demand for food could increase by half in the next 30 years. On the other hand, food must be produced reliably in an ever-changing environment, while making better use of scarce resources, protecting the climate and environment, and fostering biodiversity.
By improving people’s diets, we can reduce healthcare costs and improve wellbeing, both in developing countries and in the global north.
People have become increasingly interested in food and its impacts on the environment, society and health. This has led to an unprecedented change in consumer behaviour. The food system of the future provides Nordic technology expertise with an excellent opportunity.
“Small and agile companies that apply top expertise and new technologies can build a radically better future for food. But in addition to funding, they need support, expertise and networks in the sector. That is why this fund is so important right now,” says Kukkurainen.
Foodtech is one of the fastest-growing investment sectors: it has huge business potential, and the technology is developing fast.
“New food technologies are a key part of the changing food scene. Our participation in the Nordic FoodTech VC fund is a perfect fit with the strategic renewal of HKScan,” says HKScan Oyj’s CEO Tero Hemmilä.
Mr Kukkurainen says that the initial stakeholders are Finnish institutional investors and parties operating close to the sector. Discussions with international investors are on going.
“Nordic technology-and-nutrition expertise has a very strong global reputation. We see plenty of opportunities to export our solutions and expertise globally,” says Kukkurainen.
”Funding for start-ups in Finland is diversifying, thanks to Nordic FoodTech VC. As well as enabling the commercialisation of research results and new technologies, the fund is creating new business and jobs in a key sector of society,” says Esko Raunio of Business Finland Venture Capital Oy.
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Nordic FoodTech Venture Capital Oy
The fund (NFT. VC Fund I Ky) is managed by Nordic FoodTech Venture Capital Oy, whose founders and partners are Mika Kukkurainen, Lauri Reuter, Pekka Siivonen-Uotila and Jari Tuovinen. The partners have extensive experience of research and development, commercialisation, entrepreneurship and business, as well as venture capital funding of foodtech.