Our Approach
Our Approach
McWin Strategic Investment Approach
We are region agnostic and fully flexible in which geographies we invest in. Based on our current experience and market knowledge, we still predict that majority of our investments will be executed in North America, Europe, and Israel, as we see vast majority of deal-flow coming from these regions.
A lot of deals, and subsequently valuations in food tech space have been largely driven by hype in 2021, with investor’s fear of missing out being at an all time high.
Due to our unique positioning and value add, we have been able to successfully optimize and drive down valuations on majority of deals we have led in the past, allowing us to significantly optimize return for our LPs.
General focus is to invest in alternative protein (primarily precision fermentation and cell-cultured, opportunistically plant-based) companies that are delivering more sustainable future and are driving the entire food ecosystem to a better tomorrow.
Nonetheless, we will balance our portfolio and diversify risk by investing in other food tech subverticals, examples being vertical farming, consumer tech, delivery, supply chain management platforms, sustainable packaging etc.
Fund will invest 60-70% of the capital in alternative protein vertical, while the rest will be invested among other food tech subverticals.
Our sweet spot are deals and companies that have overcome technical risk, have a final product, and are ready to scale. This usually happens in Series B rounds, but don’t get too hung up on the letters.
We believe this is where we can add significant value and help companies scale effectively and successfully.
Connecting the food ecosystem for a more sustainable future
Investment Criteria
Great IP/Technology
We place a strong emphasis on the need for a strong portfolio of IP, allowing the company to protect it’s processes, corner of the market, and raise barriers to entry for new players.
Business Model
When there are multiple players in the same field, we like to see companies that have a differentiated business model. For example, we would prefer to invest in a company that is focusing on the B2B segment, if other players in that space are proposing a B2C approach.
Strategic Influence
Where possible, we prefer companies and management teams in which McWin can bring strategic and governance influence to the company, preferably through board level participation or observer rights and secure a target equity stake sufficient to drive meaningful engagement and target returns for investors.
Ability to scale
The company needs to have a scalable business model that addresses a pressing issue in the market, while tackling a segment with great potential for future growth. We focus on products that address large market segments, not niches.
Team
The core team must consist of amazing individuals that, together, are greater than the sum of their parts. They must be capable of guiding the company through it’s scale-up phase.
Series B
Our sweet spot is Series B, where we can add significant value by helping companies scale effectively. We prefer to lead or co-lead the round whenever possible. In our investments we look to obtain 5-10% equity poisition to drive exceptional returns and accommodate subsequent dilution.
McWin expertise and vast restaurant portfolio could act as a catalyst for new products
Food service and restaurant operators will need to leverage leading trends in Food tech not only to differentiate, but also to remain relevant and competitive
McWin expertise and vast restaurant portfolio could act as a catalyst for new products
Food service and restaurant operators will need to leverage leading trends in Food tech not only to differentiate, but also to remain relevant and competitive
Deployment of Food tech will be relevant in evolving restaurant sector
The restaurant sector will be vital in testing and iterating products in the market
Supply/distribution
Secure supply in a sustainable manner, allowing for cost benefits
New Products
Test new products into the market addressing changing consumer preferences such as alternative proteins
Operation
Leverage new technologies such as AI to optimise operations and reduce waste, increasing efficiencies as well as profile of the business among customers
Sales/consumption
Leverage digital channels and other emerging technologies to facilitate access to clients and improve client experience to drive sales growth