Singapore's VisVires launches $150m food tech fund

Fund II will participate in seed to Series B investments with a focus on problem-solving in the underlying technology of next-generation food industry companies such as alternative meat producers and sustainable farming developers.

The strategy is similar to that of Fund I. It invested primarily in the US, Europe, Israel, and Australia but only where there was a significant relevance for Asian markets, which are seen as facing the most severe food-related challenges. This approach is believed to reduce the intrinsic risk of agricultural and food investing.

“We are also starting to see more tech-focused innovation in Asia, especially in places like Singapore – the fruits of public investment in research in nutrition and food science,” Gerard Chia, a partner at VisVires, told AVCJ. “As the sector matures over the next three to five years, we certainly anticipate more investable opportunities in Asia.”

Fund I was raised primarily from Asian and European family offices, as well as a large European commodity trading company. Its portfolio comprises seven companies, which represents just over 1% of the firm’s proprietary investment pipeline, according to Chia. This pipeline has grown tenfold during the past four years.

The final investment from Fund I was completed last week with a $12 million commitment to Israel-based Aleph Farms, which is developing technologies to produce meat directly from bovine cells without harming cows. The company is a longtime relationship of VisVires and the deal had been under negotiation for over a year. Asia is the company’s primary target market.

Earlier this year, VisVires also led a $5 million round for Nutrition Innovation, a Singaporean start-up focused on healthier sugar production. The company’s technology is said to retain the antioxidants and minerals that occur naturally in cane sugar but achieves “sugar reduction” of up to 70% while integrating a range of beneficial proteins and fibers. It marked VisVire’s first direct investment in Asia.

Food innovation is a rapidly developing investment theme. Recent activity includes a $7 million round for New Zealand-based Sunfed Meats, which makes vegetarian meat substitutes, and a $145 million round for Impossible Foods, a similar US-based company expanding into Asia. Earlier this year, US-based Sustainable Bioproducts raised $33 million in part for Asian expansion.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Save this article  
• Send to  

• Topics
• Southeast Asia
• Fundraising
• Venture
• Consumer
• Singapore
• seed
• Growth capital
• Agriculture
• Technology
• Cleantech