„We are looking for big solutions“

Do you still have to compromise on returns if you invest in green tech or food tech?

LITTEK No, quite the contrary. Solutions in food tech and green tech affect the most critical ecosystems of our time. Think about climate change, the finite nature of natural resources, but also supply chain and food security as the world population increases: to have a positive impact here, extreme progress is required in both areas. In contrast to most generalist impact funds, our investments are more focused and we expect returns comparable to those of established tech funds. Investor interest is high.

You invest in America, but always with an eye on Germany. Your registered office is in Berlin. How do you rate the start-up scene in Germany – in comparison to the USA and other countries as well?

LITTEK In the world of food tech, Germany is regarded worldwide as an engine for innovation and progress, thanks to strong universities such as TU Munich, RWTH Aachen and cooperation with research institutes such as the Fraunhofer Institute. We see significantly more depth in development at an early stage, especially with deep-tech and biotech approaches. In addition, a strong scene of angel and seed investors has established itself here. Compared to Asia and the USA, however, we are still lagging behind significantly in terms of capital. Growth capital is still lacking in Germany.

Can you explain to us what is particularly exciting in the food tech sector at the moment?

LITTEK One major focus in the market right now is still – quite rightly – alternative protein sources. This is because mass farming and traditional agriculture are responsible for a third of the climate crisis, they consume 70% of the fresh water and take up 40% of the land. As the world's population increases from 8 to 10 billion people, we will have to massively transform traditional agriculture if we want to feed everyone and still preserve the planet. The biggest levers here are non-animal alternative proteins and a transformation of agriculture into a sustainable and regenerative form. Our portfolio company Neggst is also active here – and is developing the first plant-based egg with a shell. Neggst, incidentally, is a spin-out from the Fraunhofer Institute. There are also exciting new technology developments regarding new protein in the area of Precision Fermentation and mycelium. Instead of being made by cows, milk proteins are produced in steel containers by microorganisms as the “mother”, such as at our portfolio company Change Foods. This form of production is important especially in the crisis because it represents an independent regional supply chain and is resistant to all weather influences. Many sovereign wealth funds in the Middle East and Asia are currently investing heavily in this area. Otherwise, I consider topics such as Food-as-a-Medicine, regenerative agriculture and solutions for the bioeconomy as central for the coming years.

In October, you received the KfW Capital Award for “Best Female Investor”. What can you tell us about becoming a successful investor?

I read a lot and very widely, and I'm generally a curious person. This is important because it is the only way to gain the market knowledge you need to understand today’s problems and the trends of tomorrow. This is what being an investor is all about. You have to have a good feel for future trends, i.e. anticipate the business models of the future. You also need a fine rapport with people. Ultimately you need perseverance, especially at the beginning of your career.

Let’s look at your portfolio: what is the most innovative idea for you?

It’s difficult to choose as all companies are working on very relevant topics. If I may interpret the question as to which companies have the greatest potential impact, then that would be companies working on the development of new energy sources. Our basic problem today is that not all electrons in the grid are generated in the same way and currently there are not enough base-load capable renewable energy sources. For example, our portfolio company “GA Drilling” works in the area of geothermal energy, and the start-up “Reversion” in the area of biomass/biogas – both are companies that use very innovative technology to feed more green electrons into the grid whenever the sun is not shining or the wind is not blowing.

You personally have been working in the field of climate tech for a long time. What has changed the most over the years when it comes to dealing with investors?

My observation is that a new generation of investors is increasingly taking the reins. This generation has grown up with the problem of global warming and is willing to act. In addition, thanks to the excellent work of thousands of scientists, there is now an overwhelming body of data that rules out any other conclusions. If we fail to decouple our prosperity from CO2e consumption, we will face serious problems.