The food industry is undergoing significant transformations, driven by consumer choices, policy shifts, and technological advancements. To understand these changes and the role of venture capital in fostering innovation, we spoke with Lauri Reuter, an investor at Nordic Foodtech VC which has backed 18 tech startups in the food space—including BioMush.
The Role of Venture Capital in Food System
Venture capital (VC) is a powerful yet selective tool. While it doesn’t suit every business model, it plays a crucial role in enabling industry shifts. According to Lauri, “The food industry needs major changes in a short period. Some of these will come from consumer behavior and policy changes, but we also need new technologies.”
Any technological innovations can be categorized into incremental improvements and radical breakthroughs. While incremental changes refine existing processes, radical innovation reshapes entire systems. “Venture capitalists take on the financial risk associated with radical innovation,” Lauri explains. “Beyond funding, we support entrepreneurs in making these technologies a reality.”
Why BioMush?
Nordic Foodtech VC has invested in 18 food tech startups, but what made BioMush stand out? Lauri points to its ability to upcycle side streams into valuable products. “In the food industry, we must utilize all possible side streams efficiently. BioMush creates value from underutilized raw materials, which is exactly what needs fixing in the industry.”
In addition to its sustainability impact, BioMush is addressing a clear market demand. “They produce something truly useful in a resource-efficient way,” Lauri adds. “Many companies attempt to capitalize on side streams, but few succeed in turning them into valuable, market-ready products.”
What Makes BioMush Unique?
“A key factor behind BioMush’s success is its team. “The combination of deep technological expertise and creativity is exceptional,” says Lauri. He highlights the unique skill sets of CEO Kaisa Karhunen and CTO Outi Mäkinen: ‘Kaisa understands both industrial processes and commercial aspects, while Outi knows the science inside out.'”
The Future of Foodtech and Circular Economy
Food is deeply personal, which often leads to oversimplified narratives. “People latch onto certain food trends—like organic eating—because they seem straightforward. However, meaningful industry shifts often happen below the surface, beyond media hype,” Lauri notes.
For example, fermented side streams that replace salt or soy aren’t necessarily ‘sexy’ innovations, but they’re crucial. “The future of food will look very similar to what we have now, but the changes will be invisible to consumers. Managing venture capital and building companies in this space requires deep expertise.”
From an investor’s perspective, it’s crucial to look beyond the hype. “Food is full of surface-level excitement, but real progress happens behind the scenes—in technological advancements and raw material sourcing,” Lauri explains.
Rethinking Food Processing and Its Influence on Consumer Choices
“Yes, it does,” Lauri admits. However, he stresses that processing itself isn’t inherently good or bad. “The food industry must significantly cut its emissions, and most of these originate from primary production. This means we need to rethink not only where and how food is produced, but most importantly what we eat.”
Regulatory changes are already shaping the landscape. “Denmark, for instance, has introduced a carbon tax on beef. If we are serious about climate goals, emissions must be reduced drastically, and that’s a massive challenge for the entire food system.”
Final Thoughts
The shift towards a more sustainable food system requires bold action from startups, investors, and policymakers alike. With its groundbreaking technology and strong leadership, BioMush is poised to play a key role in this transformation.
