In 2022 Foodtech startups and scaleups raised $27B globally, a 44% decrease versus 2021. The VC investment is $3B larger than in 2020 and the trend line is going up.
The drop was driven by food and grocery delivery. In 2022, startups in that category raised 31% of capital, versus 45% in 2021. Ease of lockdowns, rising costs and slower revenue growth led to a 57% decrease of VC investment in 2022.
Excluding food and grocery delivery, VC investment reached $28B, a 32% decrease in 2022. In Europe, excluding food and grocery delivery, growth remained flat.
Despite a challenging fundraising environment globally, there are 12 countries that achieved a positive VC investment growth. Top 5 growing foodtech hubs: 1. Austria, grew 11x to $102M in 2022 2. Saudi Arabia, 4.4x to $263M 3. Mexico, 2.4x to $170M 4. New Zealand, 2.3x to $102M 5. Poland, 1.5x to $19M
France did not make it top the top 5, but it's impressive such a developed foodtech ecosystem still managed to grow 1.3x to $943M.
๐พ The Next Fintech Revolution: Agriculture Finance. 2022 saw a quiet but steady rise in fintech products being built for the massive agriculture industry, and theyโre only getting started. - Forbes
Latest foodtech deals
Selectdeals from last week:
๐ฌ๐ง Luckysaint, a London-based alcohol free beer maker, raised ยฃ10M in Series A funding led by Beringea. The funding comes at a time that consumers have been changing their relationship with alcohol globally. The market for non-alcoholic beer is expected to growth 1.6x to $32B in the next 10 years.
๐ฎ๐ณ Heads Up For Tails, an India-based online portal for dog products, secured $13M from existing investors. Prior to this round, the company was in talks with KKR for a $50M growth equity round, but the deal felt through due to mismatch in valuation expectations. The company's revenue growth remained flat in 2022.
๐ฎ We've tracked 283 startups working on pet and livestock food.
Other notable foodtech deals from around the globe:
๐ฌ๐ง The low carbon wine maker When in Rome secured ยฃ503K from Crowdcube to expand into the UK and Asia. The wine that is sold in paper bottles seems to be appealing to customer as the revenue grew 4x to more than ยฃ1M in the past 4 years.
๐ A year in review: Dealroom's coverage of Foodtech in 2022
With support from our partners at Five Seasons Ventures, and other industry experts, we've covered many foodtech segments and geographies in the last year, from regenerative agriculture, and angel investing to foodtech in Latin America.
This is Dealroom's weekly Foodtech newsletter. Get more industry-specific intelligence on the evolving world of Foodtech, emerging trends, and game-changing startups. Delivered on Tuesdays.
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