Nutrition's Role in Health & Climate Tech Investment Trends
Discover how innovations in nutrition are not just fueling healthier lifestyles, but also reshaping the future of health, technology, and environmental sustainability.
Aug 16, 2024
TL;DR
Nutrition at the core of our investment thesis: Nutrition is a critical driver of health and environmental sustainability, presenting significant investment opportunities at the intersection of health tech and climate tech.
Impact of poor nutrition on human health: As chronic diseases and mental health challenges increasingly tie back to poor nutrition, the demand for preventive health solutions and sustainable food innovations is on the rise.
Investment Opportunities in Health and Food Tech: It’s a great opportunity for investments in sustainable food technologies and health innovations to address public health challenges and enhance mental well-being, while also generating substantial financial returns.
In today’s fast-paced world, investing in good nutrition has become more crucial than ever. We now have reports that forecast that more than 50% of the world’s population will be overweight or obese by 2035!! 50%, that is a very alarming statistic.
The benefits of proper nutrition have far-reaching consequences that impact our health, productivity, and planet.
What are some examples of poor nutritional habits? The consumption of processed foods high in sugar, unhealthy fats, and sodium is linked to increased rates of hypertension, heart disease, and type 2 diabetes.
And what does good look like? A diet rich in essential nutrients can help prevent these conditions and improve overall longevity. Adopting healthier eating habits that emphasize fruits, vegetables, whole grains, lean proteins, and healthy fats can reduce the risk of chronic diseases and enhance overall health.
Let's dig into some of the most important topics around Nutrition / Food.
The correlation between nutrition and health outcomes
Ultra-processed foods are dangerous
Your age matters
Don’t believe everything you read regarding Nutrition
Emerging Trends in Nutrition
What does this mean for VC
The Link Between Nutrition and Health Outcomes
The impact of poor nutrition extends far beyond individual health, driving up healthcare costs and affecting economic productivity on a massive scale.
Chronic Diseases and Nutritional Deficiencies
As numerous chronic diseases are directly linked to poor nutrition, it should come as no surprise that the Western diet has resulted in the US having the lowest life expectancy among large wealthy countries. The US also spends ±16% of its GDP on healthcare services, more than any other country in the world.
The Centers for Disease Control and Prevention (CDC) has openly stated that poor nutrition is a major factor in the prevalence of obesity, a condition that significantly increases the risk of various chronic diseases. Already 80% of American adults are overweight or obese, and 93% of American adults are considered metabolically unhealthy.
Furthermore, the American Heart Association (AHA) highlights that reducing sodium intake can significantly lower blood pressure and reduce the risk of cardiovascular diseases.
Mental Health and Nutrition
Nutrition also plays a significant role in mental health. Poor dietary choices can negatively affect mood, cognition, and overall mental well-being. For example, the consumption of high-quality foods rich in vitamins, minerals, and antioxidants can nourish the brain and protect it from oxidative stress. Harvard Health discusses how a well-balanced diet is essential for maintaining mental health and can even aid in managing mental health disorders.
Nutritional psychiatry is an emerging field that explores the profound impact of diet on mental health. This field suggests that dietary interventions can be a valuable component of treatment plans for mental health conditions. For instance, omega-3 fatty acids, commonly found in fatty fish, have been shown to improve symptoms of depression and anxiety. Additionally, probiotics and prebiotics, which support gut health, are increasingly being studied for their role in mental health due to the gut-brain axis connection.
The connection between your gut and brain health is explained in this Netflix documentary “Hack Your Health: The Secrets of Your Gut” and is well worth watching (check it out here). Very basically, when we eat, our body breaks food down into glucose which enters our bloodstream. Poor blood sugar management can cause mental health symptoms, such as irritability, anxiety, and worry.
As such, we should prioritize a diet rich in essential nutrients, so individuals can support their mental health and enhance their overall quality of life.
Ultra-processed foods are dangerous
In recent years, there has been growing concern about the presence of harmful chemicals in our food supply and their potential link to serious health issues, including cancer. Ultra-processed foods, which have become increasingly prevalent in modern diets, are particularly problematic. These foods often contain a variety of additives, preservatives, and contaminants that can pose significant health risks. Studies have shown that the consumption of ultra-processed foods is associated with a higher risk of overall cancer and specific types like breast cancer. This association persists even after accounting for the nutritional quality of the diet, highlighting the potential dangers of these additives and contaminants.
One major concern is the presence of neoformed contaminants, which are harmful compounds formed during food processing. Heat treatments, such as frying and baking, can produce substances like acrylamide, which has been linked to an increased risk of kidney and endometrial cancer in non-smokers. Additionally, bisphenol A (BPA), a chemical commonly found in plastic packaging, is known to leach into food products, especially when exposed to heat. BPA is an endocrine disruptor and has been implicated in the development of various non-communicable diseases, including cancer. The widespread use of such packaging materials in ultra-processed foods further exacerbates the health risks associated with their consumption.
The consumption of processed meats has been consistently linked to an increased risk of colorectal cancer. The high-temperature processing methods used to produce these meats result in the formation of carcinogenic compounds such as N-nitroso chemicals and polycyclic aromatic hydrocarbons. These compounds have been identified as key contributors to cancer development. Given their widespread consumption, processed meats represent a significant public health concern
Your age plays an important role
Harmful additives and chemicals in modern food pose varying health risks to young vs. older individuals. In young people, these substances can interfere with growth and development. Additives such as artificial colors, preservatives, and flavor enhancers have been linked to behavioral issues like hyperactivity and attention deficits, especially in children with ADHD. Endocrine-disrupting chemicals like bisphenol A (BPA) and phthalates, found in food packaging, can affect hormone regulation, potentially impacting puberty and reproductive health.For older adults, the effects of harmful substances can be more immediate and severe due to existing health conditions and a weakened immune system. Carcinogenic compounds from processed meats, such as N-nitroso chemicals, increase the risk of colorectal cancer, a particular concern for older populations. Acrylamide, formed during high-temperature cooking, is linked to an increased risk of several cancers, including kidney, endometrial, and ovarian cancers. Older adults, with compromised health, are more susceptible to these carcinogenic effects.
Don't believe everything you read
The rise of social media and digital platforms has exacerbated the spread of nutrition misinformation. Influencers and unverified sources often promote fad diets and quick fixes that lack scientific backing. Diets that drastically cut out entire food groups or promote excessive consumption of particular foods can be harmful and unsustainable in the long term. This has led to confusion and misguided dietary practices among the public. A study published in the Journal of Medical Internet Research found that a significant portion of dietary information on social media is inaccurate or misleading, contributing to public health issues and confusion.Common myths, such as the idea that all fats are bad or that one must avoid all carbohydrates, can lead to unhealthy eating habits. For instance, while trans fats and excessive saturated fats are indeed harmful, unsaturated fats found in foods like avocados, nuts, and olive oil are beneficial and essential for health. Similarly, not all carbohydrates are detrimental; whole grains, fruits, and vegetables are important sources of energy and nutrients. Educational campaigns are crucial in countering these myths.Accurate information from trusted sources, such as Medical News Today, can help the public make informed dietary choices. Furthermore, health professionals and educators must work together to provide clear, evidence-based information to combat these myths and guide people toward healthier eating habits.
Emerging Trends — Embracing Plant-based Diets and Personalized Nutrition
Emerging trends in nutrition reflect a growing awareness of the interconnected benefits of health, environmental sustainability, and ethical standards.
Plant-based diets are a silver bullet for climate and health outcomes
The popularity of plant-based diets is on the rise, driven by health, environmental, and ethical considerations. Many people seek sustainable and healthy alternatives to meat and dairy. Plant-based diets, emphasizing fruits, vegetables, legumes, nuts, and seeds, have been associated with numerous health benefits. Studies show that such diets can significantly lower the risks of heart disease, hypertension, diabetes, and certain cancers. For example, research found that individuals adhering to a plant-based diet have a 16% lower risk of developing cardiovascular diseases and a 32% lower risk of dying from cardiovascular conditions. Additionally, plant-based diets are rich in fiber, vitamins, and antioxidants, contributing to overall health and longevity.
Plant-based diets are also more environmentally sustainable. Producing plant-based foods requires fewer natural resources and results in lower greenhouse gas emissions compared to diets heavy on animal products. According to the Food and Agriculture Organization of the United Nations (FAO), reducing reliance on animal-based foods significantly decreases the environmental footprint.
Personalized Nutrition: The Future of Health Tech
Technological advancements are revolutionizing the field of nutrition, making personalized nutrition more accessible and tailored to individual needs. Personalized nutrition, driven by genetic testing and artificial intelligence, allows for customized dietary recommendations based on an individual’s genetic makeup, lifestyle, and health goals. Companies like Nutrigenomix and Habit offer personalized nutrition plans that cater to specific nutritional needs and preferences. The development of apps and online platforms makes it easier for individuals to track their dietary intake, access nutritional information, and receive expert guidance.Tools such as MyFitnessPal, Cronometer, and the Nutritionix Track app provide detailed nutritional breakdowns of meals, helping users monitor their intake of calories, macronutrients, and micronutrients. Artificial intelligence enhances these tools by analyzing large datasets to provide precise and personalized nutrition advice. AI-driven platforms can suggest optimal food choices to manage specific health conditions like diabetes or cardiovascular disease based on real-time data and user history.
What does this mean for VC?
The growing awareness of the harmful effects of modern food additives on health significantly impacts venture capital (VC) opportunities. As the link between poor nutrition and chronic diseases becomes clearer, VC is shifting towards preventative healthcare and sustainable eating initiatives, presenting numerous investment opportunities in both climate and healthcare sectors.
Health
Demand for preventative healthcare solutions is rising, targeting startups developing health monitoring technologies, personalized nutrition plans, and functional foods. Companies like Nutrigenomix and DayTwo, which offer genetic and microbiome analysis for personalized dietary recommendations, are prime VC targets. We have also seen a resurgence in interest in anything around the microbiome and in particular, the gut microbiome. Companies such as Holobiome are at the forefront of the latest science in this area. Investing in such companies supports technologies that promote healthier choices and reduce chronic diseases.
Climate
These funds focus on the reduction of GHG because of food production impacts and can invest in companies promoting plant-based diets, organic farming, and eco-friendly food production. The popularity of plant-based diets, driven by health and environmental concerns, offers lucrative opportunities. Companies like Beyond Meat (plant-based vegan meat) and Impossible Foods have made significant strides, with room for new entrants. Investing in startups focused on alternative proteins, vertical farming, and sustainable packaging addresses health and environmental challenges.For climate and healthcare-focused funds, these investment avenues align with broader sustainability and public health goals. Investing in companies that reduce the environmental footprint of food production and improve health outcomes through better nutrition addresses global issues and offers substantial financial returns. The intersection of health, technology, and sustainability is fertile ground for innovation, making it an ideal focus for venture capital investment.
Closing words
Good nutrition is a cornerstone of preventive healthcare. By ensuring access to nutritious foods and promoting healthy eating habits, we can significantly reduce the incidence of chronic diseases and the associated healthcare costs. A well-nourished population is less burdened by illness, which translates to reduced healthcare expenditures and increased economic productivity.Moreover, nutrition profoundly impacts mental health. Diets rich in fruits, vegetables, whole grains, and lean proteins lower the risks of depression and anxiety, supporting mental well-being and overall quality of life.By understanding the profound impact of nutrition on health outcomes, mental well-being, and economic productivity, we can make informed choices that benefit not only ourselves but also our environment and communities. Embracing sustainable and nutritious dietary practices is essential for building a resilient and thriving society.
Funding Stats for Highlighted Companies (As of 2024)
Beyond Meat — Beyond Meat has raised approximately $487 million in funding before its IPO in 2019. As of 2024, the company is facing financial challenges with a market capitalization of around $423 million. Major institutional investors include Vanguard Group Inc., which holds 8.27% of the company, and other notable investors such as Zurcher Kantonalbank Zurich Cantonalbank, and Arizona State Retirement System. In 2024, the company reported revenue of $93.2 million for Q2, but also experienced significant challenges, including a 14% drop in group volumes (MarketBeat) (Nasdaq) (Just Food).
Impossible Foods — Impossible Foods has secured over $1.5 billion in funding, with significant rounds led by prominent investors like Khosla Ventures, Temasek, and Horizons Ventures. As of 2024, the company continues to expand its market presence and innovate in the plant-based food sector.
Mooji Meats — Mooji Meats is an early-stage company focused on plant-based meat alternatives, with seed funding secured, although specific figures are not widely disclosed. The startup is leveraging advanced technology to replicate the taste and texture of real meat.
Black Sheep Foods — Black Sheep Foods has raised $12.3 million in Series A funding in 2023. The company specializes in plant-based lamb alternatives, aiming to offer sustainable and ethical meat substitutes.
Provenance Bio — Provenance Bio is a biotech startup developing cell-cultured meat, particularly lab-grown seafood. The company has secured undisclosed seed funding and is focused on reducing overfishing and environmental degradation.
New School Foods — New School Foods raised $12 million in funding as of 2023, focusing on plant-based seafood alternatives. The company aims to closely mimic the sensory experience of fish with its products.
Nutrigenomix — Nutrigenomix is a private company offering personalized nutrition plans based on genetic testing. The company’s funding details are not publicly disclosed, but it is recognized for its contributions to personalized nutrition.
Habit — Habit was acquired by Viome in 2019, which has raised over $50 million in funding. Habit was a pioneer in the personalized nutrition space, offering tailored diet plans based on individual biological data.
DayTwo — DayTwo, which focuses on microbiome analysis for personalized dietary recommendations, has raised over $85 million. The company is a leader in offering microbiome-based solutions for nutrition and diabetes management.
We want to hear from you!We are curious to hear your thoughts and ideas. If you’re working on Nutrition and its applications in addressing climate change and improving personalized care, please reach out to us.
TL;DR
Nutrition at the core of our investment thesis: Nutrition is a critical driver of health and environmental sustainability, presenting significant investment opportunities at the intersection of health tech and climate tech.
Impact of poor nutrition on human health: As chronic diseases and mental health challenges increasingly tie back to poor nutrition, the demand for preventive health solutions and sustainable food innovations is on the rise.
Investment Opportunities in Health and Food Tech: It’s a great opportunity for investments in sustainable food technologies and health innovations to address public health challenges and enhance mental well-being, while also generating substantial financial returns.
In today’s fast-paced world, investing in good nutrition has become more crucial than ever. We now have reports that forecast that more than 50% of the world’s population will be overweight or obese by 2035!! 50%, that is a very alarming statistic.
The benefits of proper nutrition have far-reaching consequences that impact our health, productivity, and planet.
What are some examples of poor nutritional habits? The consumption of processed foods high in sugar, unhealthy fats, and sodium is linked to increased rates of hypertension, heart disease, and type 2 diabetes.
And what does good look like? A diet rich in essential nutrients can help prevent these conditions and improve overall longevity. Adopting healthier eating habits that emphasize fruits, vegetables, whole grains, lean proteins, and healthy fats can reduce the risk of chronic diseases and enhance overall health.
Let's dig into some of the most important topics around Nutrition / Food.
The correlation between nutrition and health outcomes
Ultra-processed foods are dangerous
Your age matters
Don’t believe everything you read regarding Nutrition
Emerging Trends in Nutrition
What does this mean for VC
The Link Between Nutrition and Health Outcomes
The impact of poor nutrition extends far beyond individual health, driving up healthcare costs and affecting economic productivity on a massive scale.
Chronic Diseases and Nutritional Deficiencies
As numerous chronic diseases are directly linked to poor nutrition, it should come as no surprise that the Western diet has resulted in the US having the lowest life expectancy among large wealthy countries. The US also spends ±16% of its GDP on healthcare services, more than any other country in the world.
The Centers for Disease Control and Prevention (CDC) has openly stated that poor nutrition is a major factor in the prevalence of obesity, a condition that significantly increases the risk of various chronic diseases. Already 80% of American adults are overweight or obese, and 93% of American adults are considered metabolically unhealthy.
Furthermore, the American Heart Association (AHA) highlights that reducing sodium intake can significantly lower blood pressure and reduce the risk of cardiovascular diseases.
Mental Health and Nutrition
Nutrition also plays a significant role in mental health. Poor dietary choices can negatively affect mood, cognition, and overall mental well-being. For example, the consumption of high-quality foods rich in vitamins, minerals, and antioxidants can nourish the brain and protect it from oxidative stress. Harvard Health discusses how a well-balanced diet is essential for maintaining mental health and can even aid in managing mental health disorders.
Nutritional psychiatry is an emerging field that explores the profound impact of diet on mental health. This field suggests that dietary interventions can be a valuable component of treatment plans for mental health conditions. For instance, omega-3 fatty acids, commonly found in fatty fish, have been shown to improve symptoms of depression and anxiety. Additionally, probiotics and prebiotics, which support gut health, are increasingly being studied for their role in mental health due to the gut-brain axis connection.
The connection between your gut and brain health is explained in this Netflix documentary “Hack Your Health: The Secrets of Your Gut” and is well worth watching (check it out here). Very basically, when we eat, our body breaks food down into glucose which enters our bloodstream. Poor blood sugar management can cause mental health symptoms, such as irritability, anxiety, and worry.
As such, we should prioritize a diet rich in essential nutrients, so individuals can support their mental health and enhance their overall quality of life.
Ultra-processed foods are dangerous
In recent years, there has been growing concern about the presence of harmful chemicals in our food supply and their potential link to serious health issues, including cancer. Ultra-processed foods, which have become increasingly prevalent in modern diets, are particularly problematic. These foods often contain a variety of additives, preservatives, and contaminants that can pose significant health risks. Studies have shown that the consumption of ultra-processed foods is associated with a higher risk of overall cancer and specific types like breast cancer. This association persists even after accounting for the nutritional quality of the diet, highlighting the potential dangers of these additives and contaminants.
One major concern is the presence of neoformed contaminants, which are harmful compounds formed during food processing. Heat treatments, such as frying and baking, can produce substances like acrylamide, which has been linked to an increased risk of kidney and endometrial cancer in non-smokers. Additionally, bisphenol A (BPA), a chemical commonly found in plastic packaging, is known to leach into food products, especially when exposed to heat. BPA is an endocrine disruptor and has been implicated in the development of various non-communicable diseases, including cancer. The widespread use of such packaging materials in ultra-processed foods further exacerbates the health risks associated with their consumption.
The consumption of processed meats has been consistently linked to an increased risk of colorectal cancer. The high-temperature processing methods used to produce these meats result in the formation of carcinogenic compounds such as N-nitroso chemicals and polycyclic aromatic hydrocarbons. These compounds have been identified as key contributors to cancer development. Given their widespread consumption, processed meats represent a significant public health concern
Your age plays an important role
Harmful additives and chemicals in modern food pose varying health risks to young vs. older individuals. In young people, these substances can interfere with growth and development. Additives such as artificial colors, preservatives, and flavor enhancers have been linked to behavioral issues like hyperactivity and attention deficits, especially in children with ADHD. Endocrine-disrupting chemicals like bisphenol A (BPA) and phthalates, found in food packaging, can affect hormone regulation, potentially impacting puberty and reproductive health.For older adults, the effects of harmful substances can be more immediate and severe due to existing health conditions and a weakened immune system. Carcinogenic compounds from processed meats, such as N-nitroso chemicals, increase the risk of colorectal cancer, a particular concern for older populations. Acrylamide, formed during high-temperature cooking, is linked to an increased risk of several cancers, including kidney, endometrial, and ovarian cancers. Older adults, with compromised health, are more susceptible to these carcinogenic effects.
Don't believe everything you read
The rise of social media and digital platforms has exacerbated the spread of nutrition misinformation. Influencers and unverified sources often promote fad diets and quick fixes that lack scientific backing. Diets that drastically cut out entire food groups or promote excessive consumption of particular foods can be harmful and unsustainable in the long term. This has led to confusion and misguided dietary practices among the public. A study published in the Journal of Medical Internet Research found that a significant portion of dietary information on social media is inaccurate or misleading, contributing to public health issues and confusion.Common myths, such as the idea that all fats are bad or that one must avoid all carbohydrates, can lead to unhealthy eating habits. For instance, while trans fats and excessive saturated fats are indeed harmful, unsaturated fats found in foods like avocados, nuts, and olive oil are beneficial and essential for health. Similarly, not all carbohydrates are detrimental; whole grains, fruits, and vegetables are important sources of energy and nutrients. Educational campaigns are crucial in countering these myths.Accurate information from trusted sources, such as Medical News Today, can help the public make informed dietary choices. Furthermore, health professionals and educators must work together to provide clear, evidence-based information to combat these myths and guide people toward healthier eating habits.
Emerging Trends — Embracing Plant-based Diets and Personalized Nutrition
Emerging trends in nutrition reflect a growing awareness of the interconnected benefits of health, environmental sustainability, and ethical standards.
Plant-based diets are a silver bullet for climate and health outcomes
The popularity of plant-based diets is on the rise, driven by health, environmental, and ethical considerations. Many people seek sustainable and healthy alternatives to meat and dairy. Plant-based diets, emphasizing fruits, vegetables, legumes, nuts, and seeds, have been associated with numerous health benefits. Studies show that such diets can significantly lower the risks of heart disease, hypertension, diabetes, and certain cancers. For example, research found that individuals adhering to a plant-based diet have a 16% lower risk of developing cardiovascular diseases and a 32% lower risk of dying from cardiovascular conditions. Additionally, plant-based diets are rich in fiber, vitamins, and antioxidants, contributing to overall health and longevity.
Plant-based diets are also more environmentally sustainable. Producing plant-based foods requires fewer natural resources and results in lower greenhouse gas emissions compared to diets heavy on animal products. According to the Food and Agriculture Organization of the United Nations (FAO), reducing reliance on animal-based foods significantly decreases the environmental footprint.
Personalized Nutrition: The Future of Health Tech
Technological advancements are revolutionizing the field of nutrition, making personalized nutrition more accessible and tailored to individual needs. Personalized nutrition, driven by genetic testing and artificial intelligence, allows for customized dietary recommendations based on an individual’s genetic makeup, lifestyle, and health goals. Companies like Nutrigenomix and Habit offer personalized nutrition plans that cater to specific nutritional needs and preferences. The development of apps and online platforms makes it easier for individuals to track their dietary intake, access nutritional information, and receive expert guidance.Tools such as MyFitnessPal, Cronometer, and the Nutritionix Track app provide detailed nutritional breakdowns of meals, helping users monitor their intake of calories, macronutrients, and micronutrients. Artificial intelligence enhances these tools by analyzing large datasets to provide precise and personalized nutrition advice. AI-driven platforms can suggest optimal food choices to manage specific health conditions like diabetes or cardiovascular disease based on real-time data and user history.
What does this mean for VC?
The growing awareness of the harmful effects of modern food additives on health significantly impacts venture capital (VC) opportunities. As the link between poor nutrition and chronic diseases becomes clearer, VC is shifting towards preventative healthcare and sustainable eating initiatives, presenting numerous investment opportunities in both climate and healthcare sectors.
Health
Demand for preventative healthcare solutions is rising, targeting startups developing health monitoring technologies, personalized nutrition plans, and functional foods. Companies like Nutrigenomix and DayTwo, which offer genetic and microbiome analysis for personalized dietary recommendations, are prime VC targets. We have also seen a resurgence in interest in anything around the microbiome and in particular, the gut microbiome. Companies such as Holobiome are at the forefront of the latest science in this area. Investing in such companies supports technologies that promote healthier choices and reduce chronic diseases.
Climate
These funds focus on the reduction of GHG because of food production impacts and can invest in companies promoting plant-based diets, organic farming, and eco-friendly food production. The popularity of plant-based diets, driven by health and environmental concerns, offers lucrative opportunities. Companies like Beyond Meat (plant-based vegan meat) and Impossible Foods have made significant strides, with room for new entrants. Investing in startups focused on alternative proteins, vertical farming, and sustainable packaging addresses health and environmental challenges.For climate and healthcare-focused funds, these investment avenues align with broader sustainability and public health goals. Investing in companies that reduce the environmental footprint of food production and improve health outcomes through better nutrition addresses global issues and offers substantial financial returns. The intersection of health, technology, and sustainability is fertile ground for innovation, making it an ideal focus for venture capital investment.
Closing words
Good nutrition is a cornerstone of preventive healthcare. By ensuring access to nutritious foods and promoting healthy eating habits, we can significantly reduce the incidence of chronic diseases and the associated healthcare costs. A well-nourished population is less burdened by illness, which translates to reduced healthcare expenditures and increased economic productivity.Moreover, nutrition profoundly impacts mental health. Diets rich in fruits, vegetables, whole grains, and lean proteins lower the risks of depression and anxiety, supporting mental well-being and overall quality of life.By understanding the profound impact of nutrition on health outcomes, mental well-being, and economic productivity, we can make informed choices that benefit not only ourselves but also our environment and communities. Embracing sustainable and nutritious dietary practices is essential for building a resilient and thriving society.
Funding Stats for Highlighted Companies (As of 2024)
Beyond Meat — Beyond Meat has raised approximately $487 million in funding before its IPO in 2019. As of 2024, the company is facing financial challenges with a market capitalization of around $423 million. Major institutional investors include Vanguard Group Inc., which holds 8.27% of the company, and other notable investors such as Zurcher Kantonalbank Zurich Cantonalbank, and Arizona State Retirement System. In 2024, the company reported revenue of $93.2 million for Q2, but also experienced significant challenges, including a 14% drop in group volumes (MarketBeat) (Nasdaq) (Just Food).
Impossible Foods — Impossible Foods has secured over $1.5 billion in funding, with significant rounds led by prominent investors like Khosla Ventures, Temasek, and Horizons Ventures. As of 2024, the company continues to expand its market presence and innovate in the plant-based food sector.
Mooji Meats — Mooji Meats is an early-stage company focused on plant-based meat alternatives, with seed funding secured, although specific figures are not widely disclosed. The startup is leveraging advanced technology to replicate the taste and texture of real meat.
Black Sheep Foods — Black Sheep Foods has raised $12.3 million in Series A funding in 2023. The company specializes in plant-based lamb alternatives, aiming to offer sustainable and ethical meat substitutes.
Provenance Bio — Provenance Bio is a biotech startup developing cell-cultured meat, particularly lab-grown seafood. The company has secured undisclosed seed funding and is focused on reducing overfishing and environmental degradation.
New School Foods — New School Foods raised $12 million in funding as of 2023, focusing on plant-based seafood alternatives. The company aims to closely mimic the sensory experience of fish with its products.
Nutrigenomix — Nutrigenomix is a private company offering personalized nutrition plans based on genetic testing. The company’s funding details are not publicly disclosed, but it is recognized for its contributions to personalized nutrition.
Habit — Habit was acquired by Viome in 2019, which has raised over $50 million in funding. Habit was a pioneer in the personalized nutrition space, offering tailored diet plans based on individual biological data.
DayTwo — DayTwo, which focuses on microbiome analysis for personalized dietary recommendations, has raised over $85 million. The company is a leader in offering microbiome-based solutions for nutrition and diabetes management.
We want to hear from you!We are curious to hear your thoughts and ideas. If you’re working on Nutrition and its applications in addressing climate change and improving personalized care, please reach out to us.
TL;DR
Nutrition at the core of our investment thesis: Nutrition is a critical driver of health and environmental sustainability, presenting significant investment opportunities at the intersection of health tech and climate tech.
Impact of poor nutrition on human health: As chronic diseases and mental health challenges increasingly tie back to poor nutrition, the demand for preventive health solutions and sustainable food innovations is on the rise.
Investment Opportunities in Health and Food Tech: It’s a great opportunity for investments in sustainable food technologies and health innovations to address public health challenges and enhance mental well-being, while also generating substantial financial returns.
In today’s fast-paced world, investing in good nutrition has become more crucial than ever. We now have reports that forecast that more than 50% of the world’s population will be overweight or obese by 2035!! 50%, that is a very alarming statistic.
The benefits of proper nutrition have far-reaching consequences that impact our health, productivity, and planet.
What are some examples of poor nutritional habits? The consumption of processed foods high in sugar, unhealthy fats, and sodium is linked to increased rates of hypertension, heart disease, and type 2 diabetes.
And what does good look like? A diet rich in essential nutrients can help prevent these conditions and improve overall longevity. Adopting healthier eating habits that emphasize fruits, vegetables, whole grains, lean proteins, and healthy fats can reduce the risk of chronic diseases and enhance overall health.
Let's dig into some of the most important topics around Nutrition / Food.
The correlation between nutrition and health outcomes
Ultra-processed foods are dangerous
Your age matters
Don’t believe everything you read regarding Nutrition
Emerging Trends in Nutrition
What does this mean for VC
The Link Between Nutrition and Health Outcomes
The impact of poor nutrition extends far beyond individual health, driving up healthcare costs and affecting economic productivity on a massive scale.
Chronic Diseases and Nutritional Deficiencies
As numerous chronic diseases are directly linked to poor nutrition, it should come as no surprise that the Western diet has resulted in the US having the lowest life expectancy among large wealthy countries. The US also spends ±16% of its GDP on healthcare services, more than any other country in the world.
The Centers for Disease Control and Prevention (CDC) has openly stated that poor nutrition is a major factor in the prevalence of obesity, a condition that significantly increases the risk of various chronic diseases. Already 80% of American adults are overweight or obese, and 93% of American adults are considered metabolically unhealthy.
Furthermore, the American Heart Association (AHA) highlights that reducing sodium intake can significantly lower blood pressure and reduce the risk of cardiovascular diseases.
Mental Health and Nutrition
Nutrition also plays a significant role in mental health. Poor dietary choices can negatively affect mood, cognition, and overall mental well-being. For example, the consumption of high-quality foods rich in vitamins, minerals, and antioxidants can nourish the brain and protect it from oxidative stress. Harvard Health discusses how a well-balanced diet is essential for maintaining mental health and can even aid in managing mental health disorders.
Nutritional psychiatry is an emerging field that explores the profound impact of diet on mental health. This field suggests that dietary interventions can be a valuable component of treatment plans for mental health conditions. For instance, omega-3 fatty acids, commonly found in fatty fish, have been shown to improve symptoms of depression and anxiety. Additionally, probiotics and prebiotics, which support gut health, are increasingly being studied for their role in mental health due to the gut-brain axis connection.
The connection between your gut and brain health is explained in this Netflix documentary “Hack Your Health: The Secrets of Your Gut” and is well worth watching (check it out here). Very basically, when we eat, our body breaks food down into glucose which enters our bloodstream. Poor blood sugar management can cause mental health symptoms, such as irritability, anxiety, and worry.
As such, we should prioritize a diet rich in essential nutrients, so individuals can support their mental health and enhance their overall quality of life.
Ultra-processed foods are dangerous
In recent years, there has been growing concern about the presence of harmful chemicals in our food supply and their potential link to serious health issues, including cancer. Ultra-processed foods, which have become increasingly prevalent in modern diets, are particularly problematic. These foods often contain a variety of additives, preservatives, and contaminants that can pose significant health risks. Studies have shown that the consumption of ultra-processed foods is associated with a higher risk of overall cancer and specific types like breast cancer. This association persists even after accounting for the nutritional quality of the diet, highlighting the potential dangers of these additives and contaminants.
One major concern is the presence of neoformed contaminants, which are harmful compounds formed during food processing. Heat treatments, such as frying and baking, can produce substances like acrylamide, which has been linked to an increased risk of kidney and endometrial cancer in non-smokers. Additionally, bisphenol A (BPA), a chemical commonly found in plastic packaging, is known to leach into food products, especially when exposed to heat. BPA is an endocrine disruptor and has been implicated in the development of various non-communicable diseases, including cancer. The widespread use of such packaging materials in ultra-processed foods further exacerbates the health risks associated with their consumption.
The consumption of processed meats has been consistently linked to an increased risk of colorectal cancer. The high-temperature processing methods used to produce these meats result in the formation of carcinogenic compounds such as N-nitroso chemicals and polycyclic aromatic hydrocarbons. These compounds have been identified as key contributors to cancer development. Given their widespread consumption, processed meats represent a significant public health concern
Your age plays an important role
Harmful additives and chemicals in modern food pose varying health risks to young vs. older individuals. In young people, these substances can interfere with growth and development. Additives such as artificial colors, preservatives, and flavor enhancers have been linked to behavioral issues like hyperactivity and attention deficits, especially in children with ADHD. Endocrine-disrupting chemicals like bisphenol A (BPA) and phthalates, found in food packaging, can affect hormone regulation, potentially impacting puberty and reproductive health.For older adults, the effects of harmful substances can be more immediate and severe due to existing health conditions and a weakened immune system. Carcinogenic compounds from processed meats, such as N-nitroso chemicals, increase the risk of colorectal cancer, a particular concern for older populations. Acrylamide, formed during high-temperature cooking, is linked to an increased risk of several cancers, including kidney, endometrial, and ovarian cancers. Older adults, with compromised health, are more susceptible to these carcinogenic effects.
Don't believe everything you read
The rise of social media and digital platforms has exacerbated the spread of nutrition misinformation. Influencers and unverified sources often promote fad diets and quick fixes that lack scientific backing. Diets that drastically cut out entire food groups or promote excessive consumption of particular foods can be harmful and unsustainable in the long term. This has led to confusion and misguided dietary practices among the public. A study published in the Journal of Medical Internet Research found that a significant portion of dietary information on social media is inaccurate or misleading, contributing to public health issues and confusion.Common myths, such as the idea that all fats are bad or that one must avoid all carbohydrates, can lead to unhealthy eating habits. For instance, while trans fats and excessive saturated fats are indeed harmful, unsaturated fats found in foods like avocados, nuts, and olive oil are beneficial and essential for health. Similarly, not all carbohydrates are detrimental; whole grains, fruits, and vegetables are important sources of energy and nutrients. Educational campaigns are crucial in countering these myths.Accurate information from trusted sources, such as Medical News Today, can help the public make informed dietary choices. Furthermore, health professionals and educators must work together to provide clear, evidence-based information to combat these myths and guide people toward healthier eating habits.
Emerging Trends — Embracing Plant-based Diets and Personalized Nutrition
Emerging trends in nutrition reflect a growing awareness of the interconnected benefits of health, environmental sustainability, and ethical standards.
Plant-based diets are a silver bullet for climate and health outcomes
The popularity of plant-based diets is on the rise, driven by health, environmental, and ethical considerations. Many people seek sustainable and healthy alternatives to meat and dairy. Plant-based diets, emphasizing fruits, vegetables, legumes, nuts, and seeds, have been associated with numerous health benefits. Studies show that such diets can significantly lower the risks of heart disease, hypertension, diabetes, and certain cancers. For example, research found that individuals adhering to a plant-based diet have a 16% lower risk of developing cardiovascular diseases and a 32% lower risk of dying from cardiovascular conditions. Additionally, plant-based diets are rich in fiber, vitamins, and antioxidants, contributing to overall health and longevity.
Plant-based diets are also more environmentally sustainable. Producing plant-based foods requires fewer natural resources and results in lower greenhouse gas emissions compared to diets heavy on animal products. According to the Food and Agriculture Organization of the United Nations (FAO), reducing reliance on animal-based foods significantly decreases the environmental footprint.
Personalized Nutrition: The Future of Health Tech
Technological advancements are revolutionizing the field of nutrition, making personalized nutrition more accessible and tailored to individual needs. Personalized nutrition, driven by genetic testing and artificial intelligence, allows for customized dietary recommendations based on an individual’s genetic makeup, lifestyle, and health goals. Companies like Nutrigenomix and Habit offer personalized nutrition plans that cater to specific nutritional needs and preferences. The development of apps and online platforms makes it easier for individuals to track their dietary intake, access nutritional information, and receive expert guidance.Tools such as MyFitnessPal, Cronometer, and the Nutritionix Track app provide detailed nutritional breakdowns of meals, helping users monitor their intake of calories, macronutrients, and micronutrients. Artificial intelligence enhances these tools by analyzing large datasets to provide precise and personalized nutrition advice. AI-driven platforms can suggest optimal food choices to manage specific health conditions like diabetes or cardiovascular disease based on real-time data and user history.
What does this mean for VC?
The growing awareness of the harmful effects of modern food additives on health significantly impacts venture capital (VC) opportunities. As the link between poor nutrition and chronic diseases becomes clearer, VC is shifting towards preventative healthcare and sustainable eating initiatives, presenting numerous investment opportunities in both climate and healthcare sectors.
Health
Demand for preventative healthcare solutions is rising, targeting startups developing health monitoring technologies, personalized nutrition plans, and functional foods. Companies like Nutrigenomix and DayTwo, which offer genetic and microbiome analysis for personalized dietary recommendations, are prime VC targets. We have also seen a resurgence in interest in anything around the microbiome and in particular, the gut microbiome. Companies such as Holobiome are at the forefront of the latest science in this area. Investing in such companies supports technologies that promote healthier choices and reduce chronic diseases.
Climate
These funds focus on the reduction of GHG because of food production impacts and can invest in companies promoting plant-based diets, organic farming, and eco-friendly food production. The popularity of plant-based diets, driven by health and environmental concerns, offers lucrative opportunities. Companies like Beyond Meat (plant-based vegan meat) and Impossible Foods have made significant strides, with room for new entrants. Investing in startups focused on alternative proteins, vertical farming, and sustainable packaging addresses health and environmental challenges.For climate and healthcare-focused funds, these investment avenues align with broader sustainability and public health goals. Investing in companies that reduce the environmental footprint of food production and improve health outcomes through better nutrition addresses global issues and offers substantial financial returns. The intersection of health, technology, and sustainability is fertile ground for innovation, making it an ideal focus for venture capital investment.
Closing words
Good nutrition is a cornerstone of preventive healthcare. By ensuring access to nutritious foods and promoting healthy eating habits, we can significantly reduce the incidence of chronic diseases and the associated healthcare costs. A well-nourished population is less burdened by illness, which translates to reduced healthcare expenditures and increased economic productivity.Moreover, nutrition profoundly impacts mental health. Diets rich in fruits, vegetables, whole grains, and lean proteins lower the risks of depression and anxiety, supporting mental well-being and overall quality of life.By understanding the profound impact of nutrition on health outcomes, mental well-being, and economic productivity, we can make informed choices that benefit not only ourselves but also our environment and communities. Embracing sustainable and nutritious dietary practices is essential for building a resilient and thriving society.
Funding Stats for Highlighted Companies (As of 2024)
Beyond Meat — Beyond Meat has raised approximately $487 million in funding before its IPO in 2019. As of 2024, the company is facing financial challenges with a market capitalization of around $423 million. Major institutional investors include Vanguard Group Inc., which holds 8.27% of the company, and other notable investors such as Zurcher Kantonalbank Zurich Cantonalbank, and Arizona State Retirement System. In 2024, the company reported revenue of $93.2 million for Q2, but also experienced significant challenges, including a 14% drop in group volumes (MarketBeat) (Nasdaq) (Just Food).
Impossible Foods — Impossible Foods has secured over $1.5 billion in funding, with significant rounds led by prominent investors like Khosla Ventures, Temasek, and Horizons Ventures. As of 2024, the company continues to expand its market presence and innovate in the plant-based food sector.
Mooji Meats — Mooji Meats is an early-stage company focused on plant-based meat alternatives, with seed funding secured, although specific figures are not widely disclosed. The startup is leveraging advanced technology to replicate the taste and texture of real meat.
Black Sheep Foods — Black Sheep Foods has raised $12.3 million in Series A funding in 2023. The company specializes in plant-based lamb alternatives, aiming to offer sustainable and ethical meat substitutes.
Provenance Bio — Provenance Bio is a biotech startup developing cell-cultured meat, particularly lab-grown seafood. The company has secured undisclosed seed funding and is focused on reducing overfishing and environmental degradation.
New School Foods — New School Foods raised $12 million in funding as of 2023, focusing on plant-based seafood alternatives. The company aims to closely mimic the sensory experience of fish with its products.
Nutrigenomix — Nutrigenomix is a private company offering personalized nutrition plans based on genetic testing. The company’s funding details are not publicly disclosed, but it is recognized for its contributions to personalized nutrition.
Habit — Habit was acquired by Viome in 2019, which has raised over $50 million in funding. Habit was a pioneer in the personalized nutrition space, offering tailored diet plans based on individual biological data.
DayTwo — DayTwo, which focuses on microbiome analysis for personalized dietary recommendations, has raised over $85 million. The company is a leader in offering microbiome-based solutions for nutrition and diabetes management.
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