The issue of climate change goes beyond reducing carbon emissions and improving vehicle efficiency. It also involves the food we consume.

PeakBridge is a fund manager that specializes in investing in the agri-foodtech sector. Recently, they successfully raised $187 million for their PeakBridge Growth Fund II, which will be used to support innovation in the food and foodtech industries. This recent capital raise has increased the firm’s total assets under management to over $250 million.

PeakBridge, a company located in Luxembourg, is part of the Edmond de Rothschild Private Equity group. It was established in 2020 by co-founders Erich Sieber and Nadav Berger.

Berger expressed a desire for their company to act as a connector for entrepreneurs looking to reach success in the food industry. They aim to facilitate a transition between traditional food practices and emerging foodtech innovations. Additionally, they have begun investing in AI technology for the food sector and currently work with at least five companies utilizing AI.

The company’s main focus is on climate change, and the partners recognized that addressing food was essential in addressing this challenge. When they were seeking funding for their new fund, they had no difficulty persuading big institutional investors of the importance of investing in foodtech solutions to combat climate change.

The latest fund raised more than the $100 million goal set in 2022. Growth Fund II was initiated with support from leading food and beverage companies worldwide, such as Grupo Bimbo, Royal Cosun, and Arancia, as well as financial institutions like Builder’s Initiative.

Peakbridge plans to invest in 16 to 20 companies within the foodtech sector, with an investment of approximately $10 million in each company. Currently, they have made eight investments, including startups like Standing Ovation, a company focused on animal-free dairy products, and Vow, known for their innovative cultured meat products, including exotic meat options.

Sieber and Berger are excited about the potential impact of lab-made chocolate on the food industry. They see this innovative product as a game-changer in the world of food

An investment made by the fund is in a company called Win-Win, which offers a cacao alternative. This product is benefiting from the significant increase in cacao prices. While prices have slightly decreased, cacao was priced at almost $11,800 per metric ton earlier this year because of adverse weather conditions and crop diseases.

Sieber discussed the impact of climate change on food commodities, such as coffee, vanilla, and cacao, which are currently experiencing disruptions. The high demand for cacao has led to an increase in prices, affecting consumers. Companies like Win-Win are working on developing alternatives to cacao with similar texture and color using natural ingredients.

Even though chocolate is a popular treat, the cacao industry has a reputation for problems like child labor and deforestation. Some companies, such as Ayana Bio, are focusing on creating high polyphenol cacao extracts using cellular cultivation to increase production of cacao bioactives. This is part of the growing trend in foodtech to improve the sustainability and ethical practices in the food industry.

Several other companies are involved in the foodtech industry as well. Planet A Foods recently received $15.4 million in funding in 2024 to further their efforts in creating a sustainable substitute for cocoa. True Essences Food also secured $27.6 million in Series B funding in late 2023 for their flavor symmetry technology, which utilizes dehydration to preserve flavor, aroma, and nutrients, particularly in chocolate products. California Cultured and Voyage Foods are also developing cocoa-free chocolate alternatives. Voyage Foods recently raised $52 million in funding.

El Khazen pointed out that large chocolate companies are facing challenges due to the rising cost of cacao, leading them to replace it with sugar. However, the price of sugar has also increased significantly. To address this issue, solid-state fermentation is seen as a promising and sophisticated solution in the foodtech industry.