Foodtech - Q1 2022 in review

Following a record 2021, foodtech VC has cooled in Q1 2022, amid supply chain volatility, war in Ukraine and an inflationary environment. Our Q1 foodtech reports dives into the latest trends and venture dynamics.

• $1.1T industry. Foodtech companies declined in value by 8% since the end of 2021, driven by volatility among public foodtech companies. But the overall foodtech ecosystem is still up +45% since Dec 2020.
  
  
• $9.2 billion raised in VC. This Q1 2022 total is down 16% year on year. India grew fastest among major markets, with the US, Europe and China slowing. Food delivery was the most funded category, and pet food the fastest growing, while online supermarket funding retreated following pandemic-driven highs.
  
  
• Delaying exits. With only 84 exits, it was a quiet quarter for M&A and IPOs. There were only 4 traditional IPOs and no SPACs, and companies put public plans on pause.

In the news

😈 Ted Cruz gets trolled by Eat Just over his climate change denial. As part of a new campaign,  the vegan egg maker is calling out climate change deniers in order to push for stronger action in Congress. - VegNews

💨 Ultrafast online grocer Getir partners with Copia, a company connecting surplus food to local NGOs, to reduce food waste. As part of the partnership, Getir can select NGOs in New York, Chicago and Boston. Would there be a similar partnership in other of Getir's markets such as Turkey, Germany and the UK? - Winsight Grocery Business

📈 Inflation cost online shoppers $2.8 billion in march according to a new report by Adobe Digital Economy. Despite rising prices, particular in groceries, consumers are still spending robustly. - Forbes

Latest foodtech deals

Select deals from last week:

🇺🇸 Jüsto, a New Mexico-based online grocery retailer, raised $152 million in Series B led by General Atlantic. The new capital will be used for geographic expansion within Brazil, Mexico, and Peru. As mentioned in our Q1 2022 report, online grocery is the second most funded category with $1.5 billion. Have a look at the complete online grocery landscape.

🇩🇪 Choco, a Berlin-based B2B marketplace connecting restaurants with supplies, became a unicorn following a $111 million Series B funding.  As we've written before, B2B marketplaces in food and agriculture are one of the fastest growing segments.

Other notable foodtech deals from around the globe: 

🇮🇳 Bigbasket, an Indian online grocery retailer, raised $131 million. BigBasket was acquired in February 2021 by Tata Group for $1.9 billion.

🇫🇷 UMIAMI, a France-based plant-based meat company, raised $30 million in Series A funding. Explore 170+ other plant-based meat companies in this interactive landscape.

🇬🇧 Better Origin,  a UK-based insect protein company raised $16 million to convert food waste into animal feed. There are 50+ other companies working on insects products for animal consumption.

Read up on all the latest foodtech deals in Dealroom.co

Tip of the week

Deep tech startups in Foodtech are now worth $63 billion. Have a look at the fastest growing ones in the last 12 months.

Dive in

🗺️ Foodtech investment heatmap

🎓 Foodtech university spinouts

🦄 110+ Foodtech unicorns and $1B+ exits

📈 Fastest hiring Foodtech companies founded by serial entrepreneurs

Ivan Draganov

Senior Innovation Analyst
Dealroom

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