September 13, 2019

By Lynda Kiernan

In a ceremony held in Kiryat Shemona, Israel, a consortium consisting of global agrifood investor Finistere, venture investor OurCrowd, Israel’s largest food manufacturer, Tnuva, and leading Israeli beverage company Tempo Beverages officially launched activity for their NIS 1 billion (US$280 million) “Fresh Start” FoodTech Incubator. 

The consortium is a very well-rounded collective of players bringing together partners that aim to build out new companies that will be part of an evolving ag and food supply chain. Each partner can offer unique experience, knowledge, and resources to the whole, enabling the consortium to give entrepreneurs guidance that touches upon a range of factors from tech and business development, due diligence, team building, early-stage investment strategies, to food production and marketing.

The four-way partnership was initially announced in May of this year following the launch by the Israeli government of a foodtech innovation incubator in the north of the country. Together, Finistere, OurCrowd, Tnuva, and Tempo bid to operate the incubator, which was established as part of the innovation center planned by Kiryat Shemona.

“We are proud of the selection of Kiryat Shemona as the residence for the venture and expect that the venture will generate a national-level impact, both for Kiryat Shemona and for the Galilee as a whole,” said Avihai Stern, mayor, Kiryat Shemona.

The fund will focus on investment opportunities along the entire food and beverage supply chains, with a particular focus on milk and protein substitutes; improving nutritional value and personalized nutrition; innovative raw materials; smart food packaging, cannabis; and IoT, AI, and Big Data.

“The FoodTech incubator in the North marks an important milestone in transforming Israel into a food technology superpower,” said Eli Cohen, Israel minister of the economy. “In light of the success in the field of cybersecurity, medical devices and autonomous vehicles, we are targeting the FoodTech industry as our next goal.”

“Besides the establishment of the FoodTech center in Kiryat Shemona, this unique technological incubator is a major milestone for the eastern Galilee, which will create significant economic value for the region, draw many investments, industries and human capital.”

The consortium will operate the “Fresh Start” incubator over the course of the next eight years. Over that time, the partners intent to provide know-how, international connections, and financial framework for more than 40 startups, and plans to accept its first company by the beginning of 2020.

Expectations are that Fresh Start will invest NIS 200 million (US$56.6 million) in direct operational costs and in the startups, and will take the lead on attracting and fostering follow-on investments estimated at NIS 800 million (US$226.6 million), which will be backed by the consortium partners, venture capital funds, and global companies.

The incubator will also work in connection with northern Israel’s leading academic and research institutions including the Migal Galilee Research Institute in Kiryat Shemona, the Tel Hai College, and Northern Research and Development, among others, and global food giants PepsiCo, Bright Food, and Heineken will also be actively involved in the project, bringing their wide experience in R&D, strength in innovation, and their access to global markets to the table.

As part of this venture, the “Fresh Start” consortium will invest in the resources needed in the form of a benefits package including assistance in buying a home and land, finding employment, child placement in schools, and more, to attract local entrepreneurs, and other innovative startups to relocate to Galilee.

“I have no doubt that with the entrance of the food giants into the region and the assistance from the Ministry of the Economy headed by Eli Cohen, Kiryat Shemona will turn into a global FoodTech center, and we call additional entrepreneurs and high-tech companies to come establish their presence in our region,” said Mayor Avihai Stern.

We will welcome the new entrepreneurs and their families joining the incubator, and will help them with residence, absorption of their children to the education system and integration into community life.”

On September 24, the incubator will conduct a startup competition, from which the winners will be given access to the fast-track entry process to the incubator, given they achieve clearance through due diligence and are approved by the Innovation Authority. To register for the “Fresh Start” startup competition, click here. 

– Lynda Kiernan is Editor with GAI Media and daily contributor to GAI News. If you would like to submit a contribution for consideration, please contact Ms. Kiernan at lkiernan@globalaginvesting.com.