Quarterly Summary July to September 2024
We Are Nicoya
Nicoya is investing in a more sustainable food system, focusing on:
• Life-style Brands
• Food Infrastructure and Novel technologies
Nicoya is an impact investor, investing in a more sustainable food system.
We are driven by our commitment to making a meaningful impact on people’s lives, their health, and the planet. Nicoya is where emerging, revolutionary food concepts are crafted and developed before landing on consumers’ plates. Together with passionate entrepreneurs, we are part of the force transforming global food systems.
At Nicoya, we turn ideas into reality. We draw upon our deep industry knowledge in FMCG, brand strategy, and finance to make informed consumer-driven investments in ambitious startups within the food industry.
We target scalable and commercially viable companies that are reimagining food production, meals and distribution. As active investors, we partner with startups early on in their journey and guide them through the complex industry landscape. We streamline startups’ acceleration path by developing their product proposition and route-to-market strategy to deliver branddriven growth.
At Nicoya, we are fueled by consumer behavior and data. Companies often forget that the consumer is the one in the driver’s seat – not the other way around, a mistake that often results in product launches that fail to resonate with consumers. That is why consumer insights are always at the core of both our investment decisions and the acceleration journey of our portfolio companies.
We are Nicoya. Changing food for good.
Selection of portfolio companies
Nicoya Portfolio Overview
N!CK’s, El Taco Truck and Foodiq have displayed good resilience during the quarter, whereas Revel Foods early-stage companies have been facing financing challenges, bringing in NAV at SEK339m (-15% Q/Q). Q3 saw no new investments being made.
Comments on Q3 valuation by Deloitte
The estimated fair value of Nicoya’s holdings is SEK 383m, a decrease by around SEK 50m (-11%) during Q3 2024, of which SEK 27m is attributable to the reassessment of Revel Foods, and SEK 8m is for out-of-scope holdings.
Q3 2024 has been characterized by political and economic volatility, resulting in continued headwinds in the fundraising market. Nicoya and other investors will continue to invest capital in the upcoming quarters in N!CK’s, El Taco Truck, and Foodiq (given that expectations and milestones are met), indicating that these companies have shown a stronger performance and are closer to reaching profitability. During the quarter, Foodiq closed an internal funding round of around EUR 1.5m with participation from one investor. Additionally, Foodiq’s total negative FX impact amounts to around SEK 7m. It’s noted that some of the holdings out of scope have updated valuations since the previous quarter and a SEK 20m downside protection is offered via liquidation preferences, primarily related to Splendid Spoon and Vertical Harvest (assuming unchanged valuations). Oda Group, Paradiset, Happy Habits and InsightMe have been written down to zero as per dialogue with Nicoya.
Nicoya’s portfolio consists of 15 portfolio holdings. Primary valuation methodology for N!CK’s, Foodiq and El Taco Truck remains the market approach with revenue multiples deemed the most appropriate metric considering the early stage and high growth profile. Multiples are supported by market-based indications and relevant primary transactions (unchanged from prior quarters) in combination with a milestone approach where deemed relevant. In
line with the quarterly report of Q2 2024, Farmers & Chefs, Oatlaws, KIANO and Inika Superfoods are included under the same umbrella - Revel Foods, a House of Brands food company. In the Q3 valuation, the valuation of Revel Foods is illustrative, using the book value as a basis. Moreover, Revel Foods has a liability to Nicoya which valuation is also illustrative and estimated by way of joining the fair value of Revel Foods’ holdings. During the quarter, Nicoya acquired the other cofounders' shares at face value, resulting in 100% ownership of Revel Foods (previously, Nicoya held 80% and the co-founders held 20%). The remaining portfolio holdings (Splendid Spoon, Oda Group, Peas of Heaven, Paradiset, Happy Habits, InsightMe, Vertical Harvest and Julienne Bruno) have not been considered nor valued following the revised scope.
By and large, the fair value of Nicoya’s portfolio companies on an 100%-basis is estimated at c. SEK 3,238m and the NAV as per Q3 2024, adjusted for net debt (or equivalent) of SEK 45m, comes in at SEK 339m, down 15% on a Q/Q basis.
Investment Company Summary
Christopher Slim, Co-founder & CEO
