Following a record 2021, foodtech startup funding has continued to cool in Q3 2022. Investment is down by 65% year on year, in line with overall VC activity.
Key takeaways:
The combined enterprise value of foodtech companies is $1.3 trillion, a 18% increase since the end of 2021. However, market value of public companies has more than halved since peaking in early 2021, though they rebounded in Q3 2022.
Q3 2022 foodtech investment reached $4.7 billion, down 65% year on year. The share of Early-stage rounds (<$15M) increased to 23% of total, while the share of rounds above $100M decreased to a 34%, levels last seen in 2016.
M&A activity has cooled, while IPOs have all frozen.With only 67 exits, this quarter saw fewer exits than any quarter of 2021. With many companies putting their planning public debuts on hold, there were 2 traditional IPOs and 2 SPACs in Q3 2022, the fewest of any quarter since Q1 2020
Access the full report for an in-depth analysis on how foodtech performed in Q3 2022.
🚀 Starship partners with Grubhub to bring sidewalk bots to colleges. The Grubhub partnership marks a pivot for Starship toward delivery as a service, with the ordering going through the Grubhub app but robot operations and maintenance still handled by Starship. More campuses are turning profitable on a monthly basis, particularly as Starship’s bots become more autonomous. - TechCrunch
🧠 Why Gopuff and Instacart are breaking into health care. Much like their big-box retail counterparts, instant grocery delivery companies are stepping into health care territory. Entering an essential category like health could help grocery delivery firms bolster their business and take market share. - ModernRetail
🇳🇱 Crisp, Amsterdam-based online grocery retailer, raised €75M in Series C funding to solidify its position as the fastest growing company in the Netherlands and Belgium in its category. In the past year, the company doubled its customer base and increased its product range by 36%.
🇫🇷 Gourmey, a Paris-based lab-grown meat company, raised €48M in Series A funding to move from research and development to commercialization. In the next 24 months, the company intends to build and begin operating a 4 300 square meters facility.
🍖 Despite challenging market conditions, alternative protein investment in Europe grew 68% in January - September this year compared to 2021. This is one of the fastest growing segments in Europe.
Deep-dive into the category by exploring this landscape with 600+ startups organized by category.
Other notable foodtech deals from around the globe:
🇨🇴 Foodology, a Colombia-based virtual restaurant operation, raised $20M in equity and $30M in debt.
👩🏻🍳 There are 56 other companies that operate dark kitchens and virtual restaurant brands.
🇨🇦 Canadian vertical farming company Elevate Farms secured $19M in Early VC funding.
🚜 We've mapped 110 vertical farming startups globally sorted by the Dealroom Signal, a quantitative tool to discover high-growth and promising companies.
🇺🇸 A zero-waste grocery delivery service The Rounds received $38M in Series A funding led by Redpoint Ventures and Andreessen Horowitz.
We’ve ranked the top 100 startups to watch over 6 verticals based on our Dealroom Signal: a powerful algorithm helping VCs, Corporates and Governments find the most promising up and coming startups.
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