Last month, our very own, Lauren Abda, Founder & CEO at Branchfood, attended the HackSummit, a leading climate and food conference hosted annually in Switzerland. The conference convened 950 founders, funders, and operators from across Europe and Israel who are creating enabling technologies and consumer brands with the primary objectives of mitigating climate change and improving human health.

Current food systems generate more than a third of all man-made greenhouse gas emissions. From animal farming and agriculture, to innovative packaging and efficient waste stream systems, innovators from across the globe are leveraging biotechnology to advance sustainable practices across the supply chain and feed the growing population. As investments shift upstream, the economic conditions elicit increased caution from investors and uncertain paths for innovative technology startups. Read on for Lauren’s exclusive insights into the ecosystem in Europe, the latest developments, and how the macroeconomic environment is influencing innovation and funding available for startups.

Food’s role in climate change is central, both as an accelerant and mitigator. Biotechnology-based solutions offer promising opportunities for industry sustainability.

Visualizing CO2 Footprints for more conscious Consumption

Nearly every aspect of the production and consumption of food results in carbon emissions. Animal-based foods, particularly beef, have some of the highest emissions. Research shows that more than a third of all human-caused greenhouse gas emissions are generated by food systems. Advancements in biotechnology — like mycelium providing the basis for new meat and packaging products, or using plants as a factory for new protein development — are demonstrating a new way forward. As these technologies develop, innovators must guard against a single solution dominating to ensure a balance of approaches. There is rightful global interest in preserving biodiversity, and this transition to more biology-based solutions offers an eco-friendly path forward.

Consumer Acceptance of Alternative Proteins Panel at HackSummit 2023 in Switzerland — day 2: Consumer acceptance of alternative proteins panel

Enabling technologies are garnering increased attention and investment from corporations trying to fulfill consumer demands and investors seeking financial returns.

While entrepreneurs continue to launch new businesses for the improvement of food, one notable shift is the focus on enabling technologies that support industry transformation and sustainable production practices. In recent years, the vast majority of startups focused on creating consumer-facing products that had a distinct differentiator within their category. The tidal wave of new brands created crowded and competitive categories and less consumer brand loyalty. Corporations and investors have taken notice and are shifting their investment focus to the less visible but more impactful technologies that enable innovation. This is benefitting the increased number of startups launching upstream technologies and novel ingredients, who can then focus on supporting their business customers, rather than creating consumer campaigns. Corporations are incorporating more of these technologies into their scaled businesses and driving a larger impact to the food system.

There is strong agreement among corporations, startups, and consumers that the search for more sustainable packaging options needs to accelerate – biomaterials are helping to provide a transitional solution.

Sustainable packaging is a top priority for food manufacturers big and small. Though there isn’t one perfect solution offering superior performance and reduced environmental impact, biomaterials are taking center stage as the best option in the near term and presenting a “transition solution” as material science strives to find alternative packaging solutions that are functional and can be produced at scale. What will it take for better materials to be embraced by the industry and consumers? Rethinking packaging and waste stream systems, working with regulators to incentivize the industry to make the change, and investing in more biomaterial development. Consumer awareness of the detrimental effects that plastics have on environmental and human health is growing and adding pressure on governments and the industry to identify and more quickly adopt packaging solutions.

The increasingly precarious startup funding environment is creating greater opportunities for corporate partners to enhance collaboration on startup technical development milestones and support by way of funding.

this networking area, as well as The stage, exhibition area, and welcome desk, were made from 6,000 produce crates, which were folded and put back in circulation after the summit

It’s a difficult time for startups at every funding stage to raise money from private investors across angels, venture capital, and private equity. Funding across all sectors in Q1 2023 declined 53% to $76 billion from $162 billion in Q1 2022 according to Crunchbase. Investors are more cautious, completing deeper diligence and taking their time with investment decisions due to macroeconomic issues and a slowdown in their own ability to raise funding. This investment uncertainty is affecting startups' ability to maintain enough resources to execute partnerships, achieve technical milestones, and hire talent. If you are a corporate partner collaborating with an emerging company, do your own due diligence check-in about the financial health of startup businesses to ensure your partnership can withstand current economic conditions.

At Branchfood, we assist corporate leaders with their innovation goals, informing their multi-year growth strategy and immersing them in the world of emerging technologies. From strategic startup introductions and exclusive innovator gatherings to roundtable discussions with experts in a priority topic, organizational structure support, and thought leadership opportunities, we help you drive positive change within your organization and successfully scale future businesses for the betterment of the industry.

Innovators across the global food supply chain partner with us to gain customized insights, a curated community, and strategy support. You can be one of them. Reach out now to accelerate your growth!