German VC Oyster Bay announces final close of Fund II at €100M to back the future of food in Europe

Hamburg-based venture capital firm Oyster Bay has announced the final close of its second fund, raising over €100 million to back startups shaping the future of food.

Hamburg-based Oyster Bay, a venture capital firm, announced the final close of its second fund, raising over €100M.

This makes it one of the largest European funds focused on the future food market.

The fund was significantly oversubscribed, with investors including the European Investment Fund (EIF) and KfW.

Focusing on the food sector’s complex problem

The food sector is the largest industry globally, generating $10T in revenue, making up 12 per cent of the world’s GDP, and employing 40 per cent of the workforce.

However, it accounts for about one-third of global emissions and causes water scarcity and loss of biodiversity.

Currently, only 8 per cent of investments focused on climate go into food and agri-tech, indicating a huge gap and potential for growth in this area.

Founded by Christoph Miller and Felix Leonhardt, Oyster Bay came into play and showed that investing in this sector can be successful.

Christoph Miller, Founder and Managing Partner of Oyster Bay, says, “Food has so far been seen in venture capital mainly as a short-lived trend investment – which is wrong. Nutrition is the most underestimated future challenge of our society, and through our investments, we aim to find solutions to its complex problems.”

The VC Fund I was among the top 10 per cent of European VC funds and included companies like Oatly, AirUp, True Gum, and GoodBytz.  

According to the company’s claims, Fund I delivered a strong return of over 25 per cent per annum.

“We invest from experience – and support our startups as entrepreneurial partners. From the idea to the exit: For food startups that want to make a difference in line with our philosophy, it matters that we are on board,” says the founding duo.

Fund II aims to continue this strategy by investing in businesses that are both profitable and impactful, supporting founders who are working to improve the global food system.

Deployment of funds

According to the VC, Fund II is set up as a 10-year fund aiming for around 20 investments.

The VC invests in less than 0.1 per cent of the startups it reviews.

The VC focuses on the quality of the founders rather than the product, and they value strong financial fundamentals over trends.

Some of their investments include Harvest Robotics (Eternal), cocoa alternatives from Nukoko, digital supply chains with Abeya, and kitchen robotics from GoodBytz.

Felix Leonhardt, Managing Partner of Oyster Bay, says, “We are not traditional financial investors, but entrepreneurs with a successful track record. Less than 0.1% of startups that apply to Oyster Bay make it into the portfolio – our involvement is a seal of quality. Only the very best are in our portfolio, those whose solutions sustainably improve the food system.”