Hamburg-based Oyster Bay Venture Capital has announced the final close of its oversubscribed Fund II, securing over €100 million to back innovative startups reshaping the global food system. The fund, supported by leading institutional investors including the European Investment Fund (EIF) and KfW, alongside entrepreneurs and corporates from the agri-food sector, marks another major step in Oyster Bay’s mission to combine purpose-driven investing with strong financial performance. The announcement underscores growing recognition that food innovation lies at the heart of climate, economic, and societal transformation.
Bridging the Climate Investment Gap in Food
The food industry is the world’s largest economic sector, generating $10 trillion in annual revenue, contributing around 12 percent of global GDP, and employing 40 percent of the global workforce. Yet, despite its vast scale and environmental footprint—accounting for roughly one-third of global emissions—only about 8 percent of climate-focused venture capital currently targets food and agriculture. This imbalance highlights a significant opportunity for investors to drive systemic change in one of humanity’s most essential industries.
A Proven Model of Purpose and Performance
Oyster Bay’s first fund demonstrated that financial returns and sustainability can align, ranking among the top 10 percent of European venture capital funds of its vintage in both Internal Rate of Return (IRR) and Distributed to Paid-In (DPI) capital. With Fund II, the firm is doubling down on its thesis of backing visionary founders across the food value chain, from production and processing to consumption and waste reduction. The strategy continues to focus on startups with scalable impact potential, addressing challenges such as emissions reduction, biodiversity loss, and food security.
Building the Future of Food
Several portfolio companies have already joined Fund II, including GoodBytz, which develops kitchen robotics; Nukoko, a pioneer in alternative cocoa; Arda Biomaterials, which upcycles brewers’ spent grain into sustainable materials; and Seedalive GmbH, revolutionizing seed testing. Each represents a distinct innovation within the food ecosystem, contributing to greater efficiency, sustainability, and resilience. A few additional investments remain undisclosed as they operate in stealth mode, signaling an active pipeline of next-generation food innovators.
Entrepreneurs Investing in Entrepreneurs
Oyster Bay distinguishes itself as Europe’s only entrepreneur-led venture fund exclusively focused on food, bringing firsthand founder experience into every investment decision. “We are not traditional financial investors but entrepreneurs with a successful track record,” said Managing Partner Felix Leonhardt, adding that fewer than 0.1 percent of startups that apply are selected, reflecting the firm’s rigorous standards. This approach has helped Oyster Bay cultivate a portfolio viewed as a hallmark of quality and strategic value within the European venture ecosystem.
Positioning for the Next Food Revolution
Founding Partner Christoph Miller described food as “the most underestimated future challenge and opportunity of our society,” emphasizing the urgency of transforming a sector that sits at the nexus of climate, resource management, and health. Oyster Bay sees significant opportunities in areas such as traceability technology, AI-based demand forecasting, and supply-chain resilience, all of which are increasingly critical for both startups and established players. As major food companies grapple with supply-chain disruptions and sustainability mandates, these technologies are poised to become key enablers of long-term industry transformation.
With Fund II now active, Oyster Bay Venture Capital is positioned to accelerate a new wave of innovation across Europe’s food ecosystem. Backed by a strong mix of institutional and entrepreneurial capital, the firm aims to foster the next generation of food champions capable of reconciling profitability with sustainability. In an era where food touches every aspect of economic and environmental stability, Oyster Bay’s €100 million fund signals not just an investment milestone but a call to action for the industry’s reinvention.