From Oatly to agritech: inside Sweden’s evolving foodtech ecosystem

Daniel Skavén Ruben is a seasoned professional with a wealth of experience in agritech and foodtech. His career has spanned government, startups, angel investments, and now, a role at Business Sweden. Agrifood encompasses a vast array of sectors, from crop and animal production to aquaculture, food manufacturing, ingredients, and hospitality.

While some of the more interesting innovations in this field are hidden from consumer view, Skavén Ruben emphasizes the critical role of food in addressing environmental issues, disease risk factors, pandemic concerns, antibiotic resistance, and animal welfare.

Skavén Ruben's career path began in Denmark, where he worked for the Danish Ministry of Foreign Affairs and its Trade Council, later moving to the United States to study international relations at Georgetown University. It was during his time in Washington, DC, that he developed a keen interest in food and agriculture, driven by the realization that everything stems from food.

This interest led him to work with the Rockefeller Foundation, where he helped the organization understand the food innovation landscape and identify potential technologies and innovations that could reshape food production, distribution, consumption, and waste management.

Over the years, Skavén Ruben has also invested in over 50 early-stage foodtech companies, ranging from lab-grown breast milk to plant-based dog food. His investment portfolio includes Omni Pet in the UK, GoodMills Innovation, and others, aimed at creating a positive environmental or nutritional impact globally. After a decade working with startups, Skavén Ruben decided it was time to transition into a more traditional role, joining Business Sweden to combine his background in trade promotion with his agrifood expertise.

Despite Sweden's strong universities, research institutions, and supportive entrepreneurial culture, Skavén Ruben acknowledges that the country has yet to fully realize its potential in agrifoodtech. While Sweden boasts strong research institutions such as SLU and Karolinska Institutet, there is room for improvement in turning research into commercially viable startups.

The Swedish government's strict environmental, animal welfare, and recycling standards, along with a strong focus on improving environmental and nutritional outcomes, create an ideal environment for foodtech and agrifoodtech startups.

However, the venture capital model may not be the most suitable fit for agrifoodtech, given the long development timelines and regulatory obstacles often encountered in the food and agriculture sectors. Traditional VC funds typically lack the patience required for such ventures, which can take decades to develop and commercialize, as seen with Oatly. Additionally, stringent regulations, particularly in Europe, can further prolong development timelines and deter smaller companies from participating.