In our interview series, we quiz future food investors about the solutions that excite them the most, their favourite climate-forward restaurant, and what they look for in successful founders.
Martin Davalos is a Partner and Head of Food Tech at McWin Capital Partners.
What future food technologies most excite you?
Precision fermentation, AI-driven food tech, and sustainable packaging solutions. Precision fermentation, in particular, has the potential to revolutionise the production of alternative proteins and other food ingredients by making them more efficient and scalable.
Additionally, gene editing for crops is gaining traction as the market seeks improved crop resilience, yield, and nutrition while reducing environmental impact.
What are the future food verticals you are actively looking at for 2025?
For 2025, I am actively looking at the following four future food verticals:
- Alternative fats and oils: Fats and oils have seen substantial inflation in the last year. I think that long-term demand growth will run up against decreasingly predictable crop yields and other environmental challenges, adding to the inflationary pressure on this category. Additionally, Robert F Kennedy Jr has specifically designated seed oils as a category that he intends to attack.
- Gene editing for crops: Gene editing for crops is gaining traction as the market seeks improved crop resilience, yield, and nutrition while reducing environmental impact.
- Food as Medicine: I remain optimistic about this trend, and our investment in Nuritas may cover part of it. We see more value here and possibly an opportunity in functional drinks. There’s potential for hyper-personalisation, particularly with AI-powered recommendations. However, this area may face low barriers to defensibility.
- Precision spraying: It seems like startups have understood they need to propose actionable solutions to retain customers. Reducing and regulating the use of pesticides are major pillars of RFK Jr’s plan for the FDA. We think precision spraying companies are well positioned to benefit from the advances in AI and machine vision over the past couple of years, and can offer meaningful cost savings to customers.
What do you consider the food tech sector’s greatest achievement in the past five years?
The greatest achievement in the food tech sector over the past five years has been the commercialisation of cultivated meat and precision fermentation products. Companies like Upside Foods and The Every Company have made significant strides in bringing lab-grown meat and animal-free egg proteins to market, which are monumental steps towards a more sustainable food system.
If you could wave a magic wand, how would you fix plant-based meat?
I would focus on improving the taste and texture of plant-based meat to make it indistinguishable from conventional meat. Additionally, I would work on reducing the cost of production to make plant-based meat more accessible to a broader audience.
What’s the top trait you look for in a founder?
The top trait I look for in a founder is resilience. Building a startup is incredibly challenging, and the ability to persevere through setbacks and adapt to changing circumstances is crucial for success.
The One That Got Away: What is the deal you wish you had gotten into, but didn’t?
It involves a company that has made significant strides in precision spraying technology. Their innovative approach leverages AI and machine vision to offer meaningful cost savings to customers, while also aligning with broader goals of reducing and regulating pesticide use.
What do you consider your most successful future food investment so far?
CookUnity. They have revolutionised the meal delivery space by connecting talented chefs with consumers, creating an elevated at-home dining experience. Their growth and market penetration have been impressive. Most recently, they have announced their upcoming launch in Toronto for the next quarter.
What has been your most disappointing investment so far?
It’s a company that did not meet its growth projections and struggled with market adoption. Despite the initial promise, the company faced significant challenges that hindered its success.
What do people misunderstand/get wrong most about VC?
One common misunderstanding is that securing funding guarantees success in itself. While funding is crucial, other factors are equally important, such as building a sustainable business model, a solid team, and a compelling value proposition.
What is the most ‘future food’ thing you have eaten this month?
A dish made with precision-fermented egg protein from The Every Company. It was fascinating to see how closely it mimicked the taste and texture of traditional eggs.
Where is your favourite climate-forward restaurant/dish/place to eat anywhere in the world?
Pink Mamma, one of the Big Mamma Group restaurants in Paris. They focus on using locally sourced, sustainable ingredients to create delicious and innovative dishes.
What’s your ‘why’? What motivates you to do what you do?
My motivation comes from the desire to create a more sustainable and equitable food system. I believe that through innovation and investment in food tech, we can address some of the most pressing challenges facing our planet and improve the health and well-being of people around the world.
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