2,568 viewsNov 14, 2018, 04:17pm
More Than $125 Million Poured Into Food Waste Startups In 2018
Dana Gunders
Dana Gunders
Contributor
Food & Drink
Over $125 million has been poured into companies tackling food waste year to date.Getty
An influx of money is going to companies that prevent food from going to waste. A report released today by ReFED tallies $125 million of private investment in the space in the first 10 months of 2018 alone.
With an estimated $218 billion of food going to waste, funders such as Andreessen Horowitz, S2G Ventures, Cultivian Sandbox Ventures, and DBL Partners see great potential. "Food waste is a huge problem hidden in plain sight,” noted Chuck Templeton, Managing Director, S2G Ventures. “Investing in it is one of the best economic and environmental opportunities in the food system."
The types of companies attracting this investment vary significantly, but all have one thing in common: their products or services prevent food from going to waste. Apeel Sciences, which produces a natural second skin to extend the shelf life of produce, was the biggest recipient with $70 million in new financing. Food Maven and Full Harvest both create B2B marketplaces for excess food or less visually appealing produce, and each received about $8.5 million. Spoiler Alert, which helps food businesses better manage unsold food inventory landed an investment from Maersk Growth; ReGrained, which makes a flour out of spent distiller grains, closed a $2.5 million round; and Atlanta-based Goodr received $1.5 million to expand its service of on-demand food rescue.
While ReFED’s tally is for the U.S. alone, the phenomenon is happening all over. Swedish company Karma closed a $12 million Series A round for its app that helps grocery stores and restaurants sell unsold food at the last minute. Electrolux was not only one of their investors, but also partnered with them to pilot an in-store smart refrigerator that allows customers to pick up their purchased items. French-based Phenix raised €15 million to expand their combination on-site and software service that sorts excess product and sends it to donation, animal feed, or recycling centers. And Israeli startup Wasteless landed $2 million to build out its dynamic pricing product, which enables price reductions for grocery products as they age.
That’s just the beginning. ReFED's Innovator Database tracks approximately 500 innovators just in the U.S., half of which were founded since 2012. Corporate accelerator programs at Chobani, Chipotle, and Maersk Ventures have all named food waste as a focus area and other food system accelerators such as Food System 6, Food-X, and Rabobank’s FoodBytes have included food-waste-fighting companies in their portfolios. “As food waste has become a global priority, we’re excited to see rapid acceleration in the number of new products and services addressing food system efficiency,” said Alexandria Coari, Capital & Innovation Director, ReFED. “These innovators are turning food waste into jobs, hunger relief, and critical environmental benefits.”
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Beyond private investment, public and philanthropic dollars are also increasing. While 2018 numbers are not available, ReFED reports that total foundation funding reached $134 million in the first three quarters of 2016. The bulk of this went to supporting food banks and other food recovery programs, but $20 million directly targeted food waste reduction initiatives—a tripling of direct philanthropic support from 2012. In addition, over $100 million has been contributed to food waste reduction from governments, mainly in California.
“If we are able to advance a more sustainable, less wasteful food system, we will preserve precious planetary resources and create more opportunities to nourish the 41 million Americans that currently lack consistent access to food,” said Devon Klatell, Food Strategy Lead and Senior Associate Director at The Rockefeller Foundation.
What’s clear is that both private and philanthropic investors are increasingly finding opportunity to improve our current, inefficient food system. A win for bottom lines, carbon emissions, food insecure people, and our planet.
Note: While author is on the Board of ReFED, she had no involvement with the above-mentioned report.
I advise companies and other institutions on creating a more efficient food system. I am the author of Waste Free Kitchen Handbook and, in 2012, authored a landmark report “Wasted: How America is Losing Up to 40% of Its Food from Farm to Fork to Landfill” that sparked a nati... MORE
Dana Gunders is a leading expert on food waste reduction. Find her and her company Next Course at www.DanaGunders.com.
