Why We Need To Build Food+Agtech Startup Ecosystem in Thailand

Why we need to build Food/Agtech Startups ecosystem in Thailand Report

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

Despite that we always proud to be a one of the world’s leading agri-food nation, surprisingly, there are no room for young startups in food/agtech space.

INTRODUCTION

Why this paper exists

While technology & innovation are the only key for our nation to thrive, we have not seen much of them in food & agri space. Sadly, smart countries around the globe are starting the revolutions in food & agri sector by pouring massive support in startups, from Israel to Singapore, leaving Thailand fall behind again (and again).

This report is based on 4 years of our experiences in multiple stages of challenges & difficulties in starting & running a deeptech startup in food & agri space from the ground up in Thailand. We see that it is vital for all stakeholders in Thailands food/agri industry, from government, corporates to universities to rethink on how to support and build a solid startup ecosystem for food/agtech startup to thrive.

Before it’s too late and the only thing we can do is to witness one of only a few sector that our nation has as unfair advantage be disrupted by others.

INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

See these examples and ask yourself

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INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

=

+

Wheat/Soy/Potato Protein

Soy Leghemoglobin

(Animal protein)

(Blood)

Heme

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INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

INTRODUCTION

Can deeptech startups really disrupt food/agri industry?

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

AGTECH FUNDS CURRENTLY RAISING YEAR IN REVIEW

GLOBAL TRENDS IN FOOD/AGTECH STARTUP SCENES

Quarterly Deal Volume and Activity Rising number of deals in food/agtech space in the past 5 years Source: 316

315

314

312

Undisclosed

Open Undisclosed Targeting $100-200m No. of deals

AquaAgro Fund II 293

287

284

287

237

Second close, Value Undisclosed Targeting $150m(Million USD)

Open Prairie Rural Opportunities Fund

Open Targeting $100m

Undisclosed

Pontifax Food & Agtech Fund

First Close Targeting $200m

Undisclosed

$2,987

Undisclosed

$3,001

177 Targeting $70m

$1,871

Omnivore

$1,499

$1,654

$2,870

$1,786

$1,630

$2,673

$1,803

203

Agriculture & Food Fund Open 2016-Q4 2017-Q1 2017-Q2 2017-Q3 2017-Q4 (Tsing Capital) Targeting $1Bn

Undisclosed

Willow Hill Ventures (Finistere, Open, IFC) Target Undisclosed

TBA

2014-Q1 2014-Q2 2014-Q3 2014-Q4 2015-Q1 2015-Q2 2015-Q3 2015-Q4 2016-Q1 2016-Q2 2016-Q3

AGRIFOOD TECH FUNDING REPORT: YEAR REVIEW 2017 | AGFUNDER.COM

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AMT. RAISED

337

$2,459

$1,568

$1,201

$788

184

# Deals

Finistere Fund II

$1,562

209

STATUS

AgFunder Financing | $Millions Open Opportunity Fund I Targeting $20m

283

222

FUND NAME

$2,252

The contraction in deal activity throughout 2017 was particularly felt at seed stage, as funding dollars were concentrated into fewer, larger deals globally.

18

AGTECH FUNDING REPORT: YEAR IN REVIEW 2016 | AGFUNDER.COM

GLOBAL TRENDS IN FOOD/AGTECH STARTUP SCENES

Global Investment in Foodtech Startups

Alternative Proteins

Meat Substitutes $310M

$388M $20M

$2M $25M

$72M $109M

$200k

$2.6M

$200k $5M Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

Source: Crunchbase

GLOBAL TRENDS IN FOOD/AGTECH STARTUP SCENES

Global Investment in Foodtech Startups

Sugar, fat & salt reduction

Superfoods, novel ingredients

$13M $14M

$200k

$500k

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$73M $600k

$4.5M

$200k

Source: Crunchbase

this report we have included a table that provides an in-depth comparison of the characteristics of each category.

GLOBAL MOVEMENT OF STARTUP INVESTMENT IN FOODTECH, AGTECH SPACE

Global Food/Agtech Accelerators & Incubators Accelerator

Definition: Set duration program where a cohort of selected early-stage companies get access to a business development curriculum and mentor and/or investor network Resources: 33 Entrepreneurs Accelerating Appalachia AccelFoods AgLaunch Agri NEST AgroInnovation Lab Amius Startup Prgrm.

Food Hatch Food System 6 Food-X Good Food Business Accel.

H-FARM Food Accelerator Indie Bio Iowa Ag Startup Engine

Bits x Bites Canopy San Diego

Just Eat Accelerator NXTP Labs AgroTech Program Prometheus RevTech Simplot Ignite SKU

CIIE Climate Ventures 2.0 Dig Eat All Food Future

Skywalker Accelerator Sprout Agritech Sprout-X Square Roots Startup Bootcamp- FoodTech Startup Next by Land O'Lakes TechStars Connection (ABInBev) Terra The Yield Lab Thrive Accelerator Village Capital Vitagora's Accelerise

AGTECH F

Accelerators are by far the most common resource in the landscape, comprising over 40% of the total resources. Accelerators provide entrepreneurs with access to Source: a large pool of resources including, but not limited to investors, marketing/PR, a Copyrights Š 2018 JuiceInnov8 Co.,Ltd. All rights reserved

CURRENT SITUATION

Where are they?

US

1 st Largest producer of corn 1 st Largest producer of soy

$2Bn+

Value of Food/AgTech startup investment Since 2013

300+

No. of deal in Food/AgTech startup investment

15+

No. of Food/Agtech Accelerator

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Source: Crunchbase, Agfunder, FAO

CURRENT SITUATION

Where are they?

ISRAEL

$750M+

Value of Food/AgTech startup investment

Not in the list As largest producer/exporter

Since 2015

220+

of any food/agri products

No. of deal in Food/AgTech startup investment

8,000,000

3+

Population

8,000

No. of Food/Agtech Accelerator

No. Of Startups

800

No. Of Startups in Food/Agtech space Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

Source: StartupNationCentral, Agfunder, FAO

CURRENT SITUATION

Where are we?

THAILAND

2 nd Largest exporter of sugar 2 nd Largest exporter of rice 3rd

Largest producer of shrimp

4 th Largest producer of pineapple juice Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

$0.5M

Value of Food/AgTech startup investment

1

No. of deal in Food/AgTech startup investment

0

No. of Food/Agtech Accelerator

Source: FAO

CURRENT SITUATION

Where are we? : Number of Food/Agtech deals per country in 2016

DEALS BY GEOGRAPHY

GLOBAL INVESTMENT PER COUNTRY

AGTECH F #Deals Funded 1 Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

277

Source:

CURRENT SITUATION

Where are we? : Number of Food/Agtech deals per country in 2017

AGTECH F

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Source:

MACRO VIEW OF CURRENT PROBLEMS

Ideal ecosystem for Deeptech startups in Food/Agtech sector to grow in Thailand

Accelerator

Investor Scaling to global market

Research for commercialization

University

Early stage

Startup Track

Pool of Talents (Scientists/Engineers)

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Launch

Deeptech Startups In Food/Agtech sector

Corporate Track

Partnering & providing new innovation to Corporate Partners

Food/Agri Corporates

MACRO VIEW OF CURRENT PROBLEMS

Truth - Unconnected dots & lack of ecosystem

Accelerator

Investor Scaling to global market

Research for commercialization

University

Early stage

Startup Track

Pool of Talents (Scientists/Engineers)

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Launch

Deeptech Startups In Food/Agtech sector

Corporate Track

Partnering & providing new innovation to Corporate Partners

Food/Agri Corporates

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MACRO VIEW OF CURRENT PROBLEMS

Truth - Unconnected dots & lack of ecosystem

UNCONNECTED DOTS 3 Food&Agtech are industries that take longer time to develop and require larger amount of investment comparing to other tech, making it less attractive for both local & regional VCs.

UNCONNECTED DOTS 1

UNCONNECTED DOTS 2

UNCONNECTED DOTS 4

Research in university are mostly not built for commercialization since there are very few viable success case to follow. Also there are no incentives for inventors to focus on building strong IP research for commercialization that takes years to develop.

Since there are no viable support from technology development & scale-up to early stage investment in deeptech in food/agri space, there are not so many engineers/ scientists who keen to spin-off research from university to found a startup company.

Lack of understanding between local corporates & startups on how to partner and grow together, this is why we rarely seen fruitful partnership between both parties.

Research for commercialization

University

BOTTOM LINE

Investor

Scaling to global market

Early stage

Startup Track

Pool of Talents (Scientists/Engineers)

Accelerator

Launch

Deeptech Startups In Food/Agtech sector

Partnering & providing new innovation to Corporate Partners

Food/Agri Corporates

Corporate Track

Since there are no viable ecosystem for deeptech startups in food/agri sector in Thailand—from a few of strong IP research to spin off, lack of investment at early stage & corporate partners to work with—it is unlikely to see new innovation & technology in food/ agri sector that was build locally from new generations of talented Thai engineers & scientists.

FUTURE OUTLOOK

What will happen next if we do nothing

Brain drain until the last drop

Thai Food/Agtech talents with global potentials will relocate to other places that provide superior support & ecosystem e.g. Singapore, US.

The one who stay will eventually become zombie startups

Thai Food/Agtech talents with local, regional focus will be struggle to survived, some will give up within 2 years

Zero innovation, forever a commodity producing nation

Nobody will innovate, innovator will continue to focus on research for publications, talented entrepreneurs will look to solve problem elsewhere not food/agri space. Thailand will always rely on technology & innovation from others and always be a commodity producers

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OUR FINAL SUGGESTIONS

How can we get back on track?

Urge local corporates to embrace and support local startups

Synergy on support in terms of investment & open innovation through pilot partnership are key to foster the ecosystem of food/agtech

Revalidate & refocus support for startups in Food/Agri space

As a nation of food & agriculture being one of a few competitive advantage we have over others, we see so many efforts to support other sectors like e-commerce & fintech while we’ve seen nothing in food/agri space

Pick on a few promising company, bet on them with full support

There must be at least ONE success case/flagship case in order to build a model for others to follow

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For Thai corporates who are reading until this page, you may wonder so what’s in it for me?

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WHY CARES?

3 Reasons why we have to build ecosystem for Food/Agtech startups in Thailand

1. Food/Agtech startup ecosystem will helps boost interests in innovation in this space • •

More talents will migrate to Food/Agtech space resulting in more talents for both food/agri corporates & startups More chance that we will see new & more innovation from talents that moved into Food/Agtech space, from higher quality of university research to new innovation from deeptech startups who keen to solve the challenge problem in this industry

2. Partnering with startups might be faster+cheaper •

Faster & cheaper than relying on in-house R&D or joint R&D with university alone

3. Fostering Food/Agri startup ecosystem will help strengthen Thailand’s competitive advantage as a leading food/agri nation •

Transforming into innovation-driven nation by focusing in food/agri sector will be the only way if our nation want to survive from a fierce competition in global stages since food/agri sector is solely one of a few unfair advantage that we have

Copyrights © 2018 JuiceInnov8 Co.,Ltd. All rights reserved

ABOUT US

JuiceInnov8 is a university spin-off deeptech startup in food space with a mission to reinvent a better juice with less sugar & lower calories through biotechnology.

Awarded as one of Global Top 500 Deeptech Startups in Hello Tomorrow Global Summit in Paris, JuiceInnov8 is also the only startup from Asia in TERRA, a food+agtech focused accelerator founded by Rabobank & RocketSpace in San Francisco Bay Area in 2017.

CONTACT US

founders@juiceinnov8.com

R&D Innovation Launch Site Fl.10, Centennial Memorial Building Faculty of Engineering, Chulalongkorn University Bangkok, THAILAND 10330

N.America Launch Site RocketSpace 180 Sansome Street San Francisco, CA 94109, USA