Why we invested: Neotaste

At Burda Principal Investments (BPI), we’re always on the lookout for promising startups that align with our core investment strategy of investing in the most innovative and fastest growing digital platforms and marketplaces, targeting both consumers and SMEs. We’re thrilled to share that we’ve recently led the €5.9m Series A round for Neotaste, a rapidly growing app-based B2C subscription platform to discover new restaurants and highly attractive deals. Here’s why we were so keen to back this promising venture:

Neotaste’s mission is to revolutionize the way consumers discover new restaurants while offering restaurants a platform to increase foot traffic. Their model allows them to serve both ends of the market, bringing value to consumers looking for great deals, and to restaurants seeking a broader customer base. They’ve already made a strong start in integrating the interactions between customers and restaurants into a single app, setting them apart in the industry.

1. Unique Value Proposition

Neotaste, founded by serial entrepreneur Hendrik Sander and product design maestro Tobias Düser, goes beyond standard deal platforms. It uniquely serves consumers with exclusive dining deals while offering restaurants an accessible platform to enhance customer engagement. Their comprehensive app-based solution integrates customer-restaurant interactions, making them stand out amongst industry peers. The strong product-market fit of Neotaste will serve as a platform for further expansion in the future.

2. Capital Efficiency and Hyper Growth

Neotaste displayed noteworthy capital efficiency and hyper-growth, doubling its revenue every 2.5 months without significant spend on marketing. With a substantial base of already over 1,200 partner restaurants and a subscription-based business model, Neotaste has demonstrated superior product engagement. Remarkably, Neotaste’s viral and capital-efficient growth has propelled strong top-line performance, even though the company has raised funding amounting to less than half of its revenue. Neotaste has shown outstanding customer love, already exceeding some of the large incumbents when it comes to product engagement.

3. A Team That Inspires

Hendrik and Tobias’s vision and hands-on mentality are inspiring. The Osnabrück-based duo has built a strong foundation for Neotaste with a lean and execution-focused team and a product admired by consumers and restaurants, despite operating with extraordinary capital efficiency. Their entrepreneurial tenacity reinforces our confidence in their ability to lead Neotaste to its next phase of growth.

4. BPI and Neotaste – A Perfect Match

At Burda Principal Investments, our investment thesis revolves around supporting high-growth digital platforms for consumers and SMEs, subscription models, and ventures that leverage (hyperlocal) network effects. Neotaste fits perfectly into our thesis. Their efficient scalability and strong network effects, make them an ideal partner for us. The synergies don’t stop with us as investors: for example, Hubert Burda Media (incl. Immediate Media) is one of the world’s largest food publishers, Nebenan.de has created a large platform connecting hyperlocal communities and businesses and HolidayCheck has deep expertise when it comes to deals and hospitality.

5. Capitalizing on Untapped Opportunities

Despite having already achieved so much with little funding, the best is yet to come for Neotaste. The company has demonstrated that their model works in cities of varying sizes, which leaves a lot of room for expansion. Now is the time to put the capital to work and double down on the recent success.

With the Series A funding led by Burda Principal Investments, Neotaste now has the resources to realize their vision: building an all-in-one digital platform for restaurants while expanding their existing successful business model to new regions.

The journey for Neotaste has just begun, and we’re incredibly proud to be part of their growth story. We look forward to working together to make the Neotaste vision a reality.