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.
Felix Leonhardt is a Managing Partner at Oyster Bay Venture Capital.
What future food technologies most excite you?
- Sensor technology
- Automation and robotics
- Software and data (see below)
- Fermentation, in all shapes and forms
In 2019, a large German retailer would order products from my previous startup by fax and pay by cheque. The whole supply chain was inefficient and barely digitalised. While in the past six years, some things have changed, this is still far from a data-driven supply chain. Using software and data in a very basic way can unlock a lot of value.
What are three future food verticals you are actively looking at for 2025?
- Climate resilient crops
- Alternative ingredients
- Leveraging data and software to make the value chain smart
What do you consider the food tech sector’s greatest achievement in the past five years?
The fact that we have a vibrant ecosystem. When I started my first startup in the space in 2012, there was no VC investing in the sector. Having an ecosystem where we have some successful exits, some well-performing funds, and obviously also some high-profile failures, is a huge achievement.
If you could wave a magic wand, how would you fix plant-based meat?
I don’t think it needs fixing. Alternative protein will happen – it’s not a matter of sustainability, but rather of economics. It was just overhyped, and lots of companies received funding at crazy valuations.
There are some great alternative protein companies out there right now. It will take a while until the trough of disillusionment is over.
What’s the top trait you look for in a founder?
Resilience, grit, resourcefulness.
The One That Got Away: What is the deal you wish you had gotten into, but didn’t?
There are a couple of great companies in our space where the valuations were too ambitious for us, and so we never got close to offering a term sheet. Yet I’m rooting for their success. If I have to name one, I think Planted is doing a fantastic job.
What do you consider your most successful future food investment so far?
Nesto Software is likely up there. This was an angel investment prior to my joining Oyster Bay.
As Oyster Bay, thankfully, our funds are so far performing well, with several good exits on companies such as Oatly, True Gum, and Air Up.
What has been your most disappointing investment so far?
We don’t badmouth our portfolio. As an angel, I was once invested in Your Super and saw this go to the moon, only to come back down to Earth very quickly.
What do people misunderstand/get wrong most about VC?
That it is the right financing form for most food companies. It is not. The opposite is the case. It’s only a fit for a very small percentage of all companies in the sector.
What is the most ‘future food’ thing you have eaten this month?
Upcycled brewers’ spent grain into barley protein.
Where is your favourite climate-forward restaurant/dish/place to eat anywhere in the world?
Zeik in Hamburg, in our hometown, is a pretty amazing restaurant to try out.
What’s your ‘why’? What motivates you to do what you do?
I broke my neck when I was 17 – I’m very lucky to be able to walk. This knowledge of how fleeting our time on this Earth can be, combined with having two children, drives me to try to use my time and skills to make a difference.
Showing that investing in food can deliver financial returns is a way to enable more and more capital to flow into transforming the food system for the better. And transforming the food system is a key lever to creating a positive future.
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