TLDR:
- Investment in food tech startups fell by 50 percent year-over-year in 2023.
- Total value of venture capital deals for food tech companies fell to $9.2 billion in 2023 from $22.5 billion in 2022.
Investors are becoming more cautious when it comes to food tech companies, with the total value of venture capital deals dropping by half for the second year in a row. The challenging market conditions, including inflation and limited exit options, have contributed to this decline. While e-commerce remains a successful segment, with notable investments in late-stage startups, there are promising trends for future food innovations such as fermented foods, alternative proteins, and products made from algae. Companies like Air Protein are exploring sustainable ways to produce protein efficiently and cost-effectively to meet the growing demand for food tech products.
