Foodtech startups and venture capital – Q1 2022

Amid war, supply chain volatility and an inflationary environment, we dive into how the $1.1 trillion foodtech industry fared in Q1 2022, and where the $9.2B of VC investment raised this quarter was headed.

Report - Foodtech startups and venture capital – Q1 2022

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$1.1 trillion industry

Amid public market volatility at the start of 2022, foodtech companies have declined in value by 8% since the end of 2021. The cohort of companies launched between 2010-2014 declined the most, 17%. However the trillion dollar foodtech industry overall is still up +45% since the end of 2020.

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$9.2 billion new startup funding

Foodtech investment reached $9.2 billion in Q1 2022, down 16% year on year. Investment into foodtech startups grew fastest in India, while the US, Europe & China contracted.

See every roundWith $4.6B raised in Q1 2022, food delivery is the most funded category, followed by online supermarkets and alternative protein. Pet food was the fastest-growing segment, while online supermarket funding retreated from pandemic-driven highs.

Exits on pause

With only 84 exits, this quarter saw fewer exits than any quarter of 2021. M&A activity cooled, and with many companies putting their planning public debuts on hold, there were only 4 traditional IPOs and no SPACs in Q1 2022, the fewest of any quarter since Q1 2020.

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From food security to fertilizer, sustainable consumption to supply chains all set to remain near the top of global agendas in the coming months and years, the innovative solutions being developed by startups may provide some of the paths forward to these complex challenges.

Report - Foodtech startups and venture capital – Q1 2022

Get the complete report