Where is the idea coming from? Why have you chosen this specific sector to invest in?
We are a specialized private venture that invest in companies of the food. Our goal is to eliminate and reduce animals within the global food supply. We see the animal agriculture industry as inefficient, in need of disruption and believe it poses a threat to the environment, animals, and humans.
Which is the common feature of startups that you collaborate with?
We invest in companies developing plant, fungi and cell-based alternatives that provide direct replacements (beef, poultry, dairy, eggs and seafood), and service companies that facilitate the sale of such products. We invest globally and have companies (such as in the US, Europe, Israel, China, India, Mexico, and New Zealand). We provide funding to early-stage companies with the potential to have a significant impact on transforming the market of industrial animal agriculture.
What is the first step that new startups has to face with? Which are difficulties that they face with and how they deal with them?
It is necessary to think about something new and unique, identify the right/appropriate way to develop it and manifacture and choose the right raw materials to obtain a good tasting product. One of the hardest jobs is to establish a competitive price point which leave at the same time room for a profit margin. Defining how to distribute it and how to reach more consumers possible is another step of the process. One of the toughest tasks is scaling the product for larger sales.
How important are organoleptic characteristics/properties for these meat substitutes? (texture, taste, flavour etc…)
Taste is the most important parameter. We invest in companies whose products stand out for their organoleptic properties (especially taste and smell). Investing in something that is not tasting well is high level risk. People would try it once and never buy it again.
What would you suggest to those who believe in these products and want to invest in them?
- Do not do it alone; the process is very complex and having someone who guides you could be really helpful.
- Seek cooperation with someone who is expert in Food technologies, R&D and/or has gained long-standing experience in food industry. (Chefs, Food technologists, food engineers etc…)
- Invest your energies is something that is unique. do not focus on products that have already been created.
Which is the consumer type of your clients?
Today Millennials are the driving force of change, but it is worth noting that plant-based products are bought by different types of consumers. People choose to buy and consume these products for different reasons: some do so to have a balanced diet, others for ethic reasons, others just because they like them or to try something different.
Do you believe that plant-based products could be the future food? Why? Explain.
Lots of new opportunities are now in place for these products. Choosing them means acting for the good of the environment and the global population, because they are far more sustainable. Animal farming is no longer sustainable and causes lots of problems. The population keeps growing and we need to find a way to feed people. [People like the products which have been created so far because they are environmentally sustainable, are highly nutritious and have good organoleptic properties. So there is every reason to believe and invest in them.]
Dan Y Altschuler Malek - New Crop Capital
Thanks to his passion for food, sustainability and entrepreneurship Dan wants to contribute to the realization of a new global food chain. He collaborates in close contact with young entrepreneurs of the sector, together they develop winning strategies for the affirmation of new products and the acquisition of international markets.
