April 10, 2023

By Lynda Kiernan-Stone, Global AgInvesting Media

Dutch environmental impact investor Future Food Fund (FFF) has announced the first close for its second fund – Future Food Fund II (FFF II) at $20 million – with expectations for a second and final close at $50 million within a matter of months. 

Sector transformation is critically needed in the years to come in order to support the sustainability of our planet in the face of climate change. Ironically, the most critical industry to the survival of humanity – agriculture – is also responsible for nearly 25 percent of greenhouse gas emissions; is the leading driver of the loss of biodiversity; one of the largest sources of nitrogen and phosphorus pollution; a key cause of land-use change; and a major user of the world’s fresh water. 

FFF noted that it is imperative that governments, industries, and consumers partner to meet this challenge, and that within this call, venture capital has an important role to play through impact-driven investing. 

As a player in the space, Future Fund II has a mission to invest in Seed and Series A rounds for companies in Western Europe that are disrupting and transforming the food and ag value chain by leveraging its international impact framework to address the most pressing F&A themes, including smart farming, regenerative ag, bio-based ingredients, and alternative proteins. 

“Investing in agrifood tech is the quickest way to positively impact the transformation of our food systems, we see it as our responsibility to contribute to that,” said Peter Arensman, Future Food Fund. 

Being based in the Netherlands gives FFF an advantage, given the country’s stance recognizing the importance of the food and agri transformation and being home to various institutes and research initiatives along with attractive ecosystems and networks in place ready to advance the growth of potential startups and scale-ups.

Although the Netherlands is 270 times smaller than the U.S., it is an agricultural powerhouse and is ranked as the second largest agricultural exporter in the world. Having suffered devastating famine during World War II, the country today feeds millions of people by being a pioneer in innovative production and by leveraging technologies born of its universities and institutes, creating a conducive environment where 15 out of the world’s 20 top agrifood companies in the world have chose to locate either key production or R&D facilities in the country. 

Concentrated in the Northeast and East of the country, numerous companies, institutes, and institutional investors in the region have backed FFF II with the aim of collectively creating synergies, connections, and creating added value to ventures from all regions. 

Among the backers is Oost NL –  the development agency of the Netherlands. Working under its mission to contribute to the necessary transitions for a sustainable and healthy future by working with partners to strengthen innovative themes that are prominent in the East Netherlands: food, health, tech, energy and the circular economy, Oost NL is committed to social and economic impact by investing in innovative companies with public funds and connecting the region with both domestic and international players. 

“The investment strategy of FFF fits in seamlessly with the ambition of Oost NL to accelerate the transition to a sustainable and healthy food system,” said Berg de Bleecker, Oost NL. “FFF has already invested in companies in the East of the Netherlands, such as No Palm Ingredients and Pectcof. With this second fund more opportunities arise for impact-driven startups.”

Also backing FFF II is Wageningen University & Research (WUR), a leader with the goal of exploring the potential of nature to improve the quality of life across the domains of sustainable food production, healthy food and living, and the social and natural living environment. 

With wide-ranging expertise, technologies, and facilities, WUR counts 7.200 employees,  13,200 students, and 150,000 participants working around the world to address food security, biodiversity, and climate change. 

“WUR is working with Future Food Fund to foster the growth of startups and encourage groundbreaking innovation,” commented Sebastiaan Berendse, WUR. “For all agrifood startups, including Wageningen spin-offs, venture capital is crucial to develop their innovations. The fund’s network helps them achieve their social and sustainable goals. By actually bringing products to market, they can accelerate transitions and increase impact.”

Rounding out the backers is NOM – the investment and development agency for Northern Netherlands, which provides risk-bearing capital, assistance with location selection, and promotion of projects and investments that increase the competitive nature of businesses in the Northern region of the country. 

“The Dutch agrifoodtech sector needs funds that play a role in the early phase,” said Ruud van Dijk, NOM. “For that reason, Oost NL and NOM support FFF, so that the venture capital landscape in NL is further strengthened.”

~ Lynda Kiernan-Stone is editor in chief with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Unconventional Ag. She can be reached at lkiernan-stone@globalaginvesting.com.

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