Published on the 03/12/2015 | Written by Beverley Head
The trend for enterprise Australia to establish technology investment funds and incubators to piggyback on startup innovation continues – with food technology the latest beneficiary…
Food company Simplot announced last week that it had paired up with Slingshot to create Simplot Ignite, an incubator focused on accelerating the development of food-related technologies. Simplot last month hosted the Hackfood hackathon to encourage innovation in the sector, with an app called Chewsr, described as “the food baby of Tinder and Uber” winning the event.
It’s just the latest in a conga line of companies which are setting up incubators and investment funds to forge closer relationships with startups. Telstra has its muru-D programme, Westpac has the Reinventure investment arm, Tyro has set up a fintech hub, a range of companies are involved in the Stone & Chalk hub, and HCF and Slingshot have also combined to set up health tech accelerator HCF Catalyst.
Forging close relationships with startups does not allow established corporates to abdicate their own innovation obligations – but it does provide easy access to new ways of thinking, and an early warning of disruptive business models that are emerging.
Simplot Australian managing director Terry O’Brien said that; “We want to bring some fresh thinking to Australia’s food system and work with entrepreneurs who are passionate about improving it. HackFood marked the first time innovators came together to tackle the challenges faced by the food industry and with the food market valued in the $ trillions, we know there is so much more Australian startups can bring to the table if given the right opportunities.”
Simplot Ignite will offer a three month programme with selected startups receiving $30,000 and a 12 week tailored mentoring programme. In return they give up 10 percent equity.
Participants will also have the opportunity for second-round investment of up to $100,000 from the Slingshot Venture Fund.
Food tech has been vibrant in Australia for the last couple of years with the rise of organisations such as corporate catering platform YouChews (a muru-D graduate), Melbourne providore marketplace YourGrocer.com.au, hospitality network FindMyRice, even specialist hospitality recruitment sites such as EmployMe.
Morgan Ranieri, co-founder of YourGrocer, said that he felt Australia’s supermarket duopoly, held by Coles and Woolworths until recent assaults by Aldi and Costco, had stymied food innovation in Australia to some degree. However he predicted that this was now changing rapidly.
