Cost Capital raises first funding to invest in European food tech startups

Image credits: Kost Capital / Bodil Sidden, General Partner, Kost Capital

Cost Capital, a new Danish venture capital fund, is working to bring better food to more people.

General partner Bodil Sidden founded the company with LPs Kasper Hultin, Christian Tan Jespersen, Mark Emil Hermansen and Jacob Lee Ornstrand.

However, cost means “meal” in Scandinavian, and it would be very difficult to stick to that while working there. That’s because Cost Capital shares space with Cost Studio, a food development studio that also serves as a test kitchen for universities and markets to collaborate to develop new foods.

Mr. Siden declined to say how much of the 25 million euros had been raised so far, but said backers include Danish sovereign wealth fund EIFO and founding limited partners of Cost.

Kost Capital invests in pre-seed and seed startups across Europe, focusing on B2B inputs in the future of food. The company has already invested in three companies: Estonian palm oil substitute company Äio, French infant formula company Numi and Danish ingredients company Nutrumami.

Mr. Sidden’s journey into venture capital began in a very unique place. She was involved in Swedish politics as a member of the moderate national party board, spokesperson for Fredrik Reinfeldt’s government, and worked for the Swedish cabinet.

“I’ve always been very passionate about social change. My parents are immigrant teachers, so I’ve always been very exposed to justice and global issues,” Sidden told TechCrunch. “Then I joined the tech world and worked in communications for Uber in Northern Europe, where I learned about big tech and how to learn locally about tech companies and how to scale their markets.”

She then partnered with two of her colleagues from Uber to set up a venture capital fund in Stockholm and do hands-on company formation. For example, working with technology companies that had no way to commercialize.

After establishing two funds, Sidden contacted the investors behind the cost and was looking for a general partner to help build the platform and setup strategy. That’s what she said she has been working on over the past year with the help of senior associate Paul Archambault.

Kost’s investment thesis builds on Sidden’s political background and the concept that food is supported by the bioeconomy. Recognizing population growth, climate change, food waste, health issues and policy changes, Sidden said food technology needs more funding.

“If you look at the next five years, all the macro trends speak to that, there is a huge lack of investment,” he said. “If you look at where the money has gone, it’s really like logistics and brands and not even food. This is a huge opportunity and we expect generalist VCs to come back into this space as well. Initially, many B2Cs took some hits and it was difficult to evaluate different types of business models, but now I think that may change.”

That said, one of Sidden’s milestones is that Kost is calling it “the best in Europe” for food technologists and generalist investors seeking companies with scale-up expertise and food-specific capabilities. to become a co-investor in

Meanwhile, food tech is attracting attention in Europe. For example, Infinite Roots, which makes proteins from mycelium, not only has more investment than average, it also has more funding. This week, Eatable Adventures, an accelerator that helps create and support foodtech in Spain and Italy, completed a half stake in a €30 million investment vehicle called the European Foodtech Acceleration Fund I SCSp. announced.

Government support is also increasing. For example, the UK has spent £2 billion on biotechnology, particularly in food. The European Union has its own €50 million plan to expand precision fermentation, and Aleph Farms has received Israeli regulatory approval for cultured meat.