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Venture Capital Activity in the Food & Beverage Sector – January 2015

by Emily Forbes

  • 29 Jan 2016
  • PE
  • VC

According to Preqin’s Venture Deals Analyst module on Private Equity Online, the food & beverage industry has seen a steady increase in the number of deals completed since 2008. From 2007, there have been 724 venture capital financings recorded in the industry for an aggregate value of $4.3bn. 2015 was a record year for the food & beverage sector, with 140 deals taking place for a combined $1.2bn – an increase of 24% and 40% respectively on the previous year totals. Despite an overall increase in the number and aggregate value of venture capital deals in the food & beverage sectors combined, they only account for just over 1% of all venture capital deals and 0.7% of aggregate deal value since 2007.

Unsurprisingly, North America has dominated venture activity in these sectors, accounting for approximately half of the number and aggregate value of all venture capital deals in these sectors since 2007. However, in recent years, the proportion of the number of food & beverage deals in India has increased from 7% of all global venture capital deals in 2012 to 30% in 2015.

Angel and seed deals accounted for 31% of the number of venture capital deals in the food & beverage industries in 2015, although deals at these stages account for just 3% of the aggregate value. Conversely, series D & later rounds only accounted for 3% of the number of deals in 2015, but represented 35% of the aggregate value. Furthermore, the average size of an angel and seed deal in 2015 was $1mn, while later rounds averaged $104mn per deal. The large average value of series D & later rounds, a 256% increase on 2014, was due in part to the €110mn series E round for HelloFresh, and the $135mn series D round for Blue Apron that occurred in February and June of this year respectively.

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