Tnuva and Tempo Beverages have teamed up with OurCrowd and Finistere Ventures to launch a foodtech incubator called Fresh Start with an expected $284m in funding.
Food manufacturer Tnuva, beverage producer Tempo Beverages, equity crowdfunding platform OurCrowd and venture capital firm Finistere Ventures co-launched an Israel-based foodtech incubator on Wednesday with a targeted ₪1bn ($284m) in funding.
The four expect to provide approximately $57m to direct operational costs and investments in portfolio companies, and will raise the remaining capital through contributions from members of the consortium as well as external investors.
The Fresh Start FoodTech Incubator will invest in more than 40 startups, focusing on milk and protein substitutes, improved nutritional value and personalised nutrition, innovative raw materials, smart packaging, cannabis and advanced technologies such as the internet of things, artificial intelligence and big data.
The first cohort is expected to join Fresh Start in early 2020 and the initiative is expected to operate for eight years.
Fresh Start is expected to drive significant economic value for the eastern Galilee region in northern Israel. Startups will benefit from a benefits package to encourage relocation, with perks including assistance with buying homes and finding school placements for children.
Tnuva and Tempo both have existing operations in Galilee and will use that presence to support Fresh Start’s work. Brewing company Heineken and food and beverage groups PepsiCo and Bright Food are also looking to lend their expertise.
The incubator intends to work alongside local research institutes and universities, such as Migal Galilee Research Institute, Tel Hai College and Northern Research and Development.
Chanan Schneider will lead Fresh Start as chief executive. He had previously held the same position at Persimio, a spinout of Ben-Gurion University of the Negev that is commercialising technology to simulate the response of human bones to load.
The four partners were selected through a tender process launched by Israel Innovation Authority, part of the government’s Ministry of Economy, in June this year.