The investment firm McWin created by Henry McGovern and Steven K. Winegar, the founders of Amrest and Restauravia respectively, has launched the McWin Food Tech Fund (McWin FTF).
The new fund comes following the success of the McWin Food Ecosystem Fund (FEF) from last year, which bought out the majority shareholder of Burger King Germany and immediately aimed for growth and sustainability for the brand.
McWin recognises that our current food system is broken and will be unable to support the future population. They suggest that an 80% increase in crop production will be needed to meet food demand by 2050 and that there’ll be 9.7 billion humans by then.
They also recognise the inefficiencies in land usage with the 77% of agricultural land taken up by animals despite only making 17% of the food. The food industry also produces twice as much CO2 as the transportation industry.
What this means for the fund is that there’ll be challenges for food and climate impact and alternative proteins will be at the heart of any positive change.
What Will the Food Tech Fund Do?
McWin’s Food Tech Fund is looking to create a balanced and diverse portfolio across the whole food tech spectrum including alternative proteins, supply chain optimisation, agtech, and sustainable packaging.
Their goal is to make the most of unique investment opportunities in the sector and drive change towards sustainable food tech, while also promising great returns for investors. The McWin team are certain that this is a new and unique opportunity for associated brands and operators.
Where Will McWin’s Food Tech Fund Invest?
While they do claim to be “region agnostic”, McWin predicts that the majority of their investments will be in North America, Europe, and Israel.
They expect around 60-70% of the capital will be invested in alternative protein and the rest invested across other food tech sub-verticals.
They’ll be investing in companies that have a final product, mostly in Series B rounds that are ready to scale.
They’ll be looking to invest in companies with great IP or technology, a differentiated business model, and the ability to scale while also looking for McWin to enjoy board-level participation or observer rights.