Israel's high tech is prominent in both Agro and Medical- / Healthcare- technologies. Foodtech is exactly in the middle (19.5.2014)

I am involved in a very interesting food packaging technology startup. We developed incredible technology (and supporting IP) with only small amounts raised. But still, the efforts in this market seem to be other than technological development. As strange as it may sound, and despite some efforts (for example Strauss Alpha), the industry giants are acting as if they are not interested in new technologies. They know that their R&D departments are not capable of any disruptive R&D, such that will enable them to change (for the good) what we eat and drink (and how we do it) and seem to agree to integrate technologies only after they are already… mature.

I do understand that food and beverages is a steady and old-fashioned industry. But the world around it is changing. fast.

Vegans, vegetarians, gluten-free eaters, sugar reducers, and even just your common consumers are more and more aware. And they will not wait 5 years for the giants to slowly but surely change their ways. They want their healthier foods now. They want to eat preservative free, they want longer expiration dates and as soon as possible.

So the demand is there. And the technology people, especially here in Israel, are working hard. Improving packaging, reducing preservation substances amounts, reducing sugars and what not. So where does this loop break? At the funding.

Because of the strong demand, the entrepreneurs are at work. But as the industry is not receptive, time frames are long, and so are exit potentials, Hence – your average VC fund is not equipped to fund such a long horizon venture, and angels are also having similar difficulties…

I apologize for not being conclusive. I don’t know yet how this mismatch will turn out. What is evident is that we will continue to eat loads of sugar, salt and preservatives before anything will happen, but is will.