According to Sifted, Berlin-based venture capital firm FoodLabs has raised its third fund, securing €105 million. The firm, founded in 2016, will invest this capital into early-stage European startups focused on creating a healthier and more sustainable food system. The investment thesis targets three core areas: agriculture, food security, and health, with initial check sizes ranging from $100,000 to $2 million for roughly 25 to 30 companies. General partner Patrick Noller acknowledged the tough fundraising climate but emphasized the massive, unsolved problems in the global food industry. The firm’s portfolio includes companies like animal-free cheese maker Formo and regenerative agriculture startup Klim. Strategic investors in the new fund include corporate giants like Nestlé, Red Bull, and beer manufacturer Bitburger Holding.
Betting Against the Hype Cycle
Here’s the thing: raising a nine-figure fund for sustainable food tech in 2024 is a statement. Patrick Noller’s comments are a direct shot across the bow of current VC trends. He’s basically saying, “Yeah, everyone’s piling into AI and defense right now, but we’re sticking with the fundamentals.” And he has a point. Food is a multi-trillion dollar industry that’s notoriously inefficient and ripe for disruption. It’s not a fleeting trend; it’s a permanent, physical need. So, while the funding environment has gotten “harsher,” as Noller says, this fundraise suggests there’s still deep conviction—and capital—for founders tackling these gnarly, real-world problems. It’s a contrarian bet, but one grounded in a very big market.
Where the Money Is Actually Going
The three focus areas tell a clear story. “Agriculture” isn’t just about seeds anymore; it’s about software, AI, and robotics meeting heavy machinery. Their investment in an autonomous tractor company, Voltrac, proves they’re serious about the “hard” part of hard tech. The “food security” bucket is where the sci-fi stuff happens—new proteins, weird plants, and entirely novel food classes. This is the long-term, moonshot arena. Then there’s “health,” which feels like the most immediate commercial path. Mood-supporting ingredients and adaptogens? That’s a direct line to the consumer wellness boom. This spread allows them to balance near-term viability with transformative bets.
The Strategic Investor Angle
Now, the list of LPs is arguably as important as the fund size. Having Nestlé, Red Bull, and Bitburger on board isn’t just about money. It’s about signaling and, more crucially, potential pathways to market. For a startup making a new ingredient or a novel food product, a partnership with or distribution through one of these giants is the dream. It gives FoodLabs’ portfolio companies a huge leg up. These strategic investors aren’t just betting on financial returns; they’re scouting for their own future supply chains and product lines. That kind of alignment is powerful, especially in an industry as complex and regulated as food and agriculture. It makes you wonder if this model is the secret sauce for hard tech investing in general.
A Reality Check for Food Tech
But let’s not get carried away. A €105 million fund, while significant, is still a relatively small drop in the ocean of capital needed to rebuild our food systems. And the focus on early-stage means these companies will need much, much larger rounds down the line to scale manufacturing and reach meaningful impact. That’s the real bottleneck. Can the later-stage capital be summoned? FoodLabs is placing a bet that by the time their startups are ready, the answer will be yes. They’re building the pipeline. It’s a necessary and confident step, but just the first of many in a very long marathon.
