Is B2B foodtech finally catching B2C?

In Europe, so far in 2022 VC investment in foodtech is down 40% compared to the same time last year. However, business-focused categories are displaying green shoots of growth. B2B foodtech startups, in segments such as Vertical farming, Agritech, B2B marketplaces and Enterprise software have raised more investment this year than last. The share of foodtech investment that’s heading to business-focused companies has also increased from 30% in 2021 to 58% in 2022, so far.

Year-on-year VC investment change in European Foodtech
Jan–Sep 2021 vs. Jan–Sep 2022

The pandemic-fuelled flood of funding into areas like online supermarkets, food delivery and direct-to-consumer brands is well and truly over, as investors predict consumer behaviour to be less sticky than previously thought, particularly amid a global economic downturn and rising cost of living in many of the world’s richest countries.

Meanwhile food security and supply chain issues have put pressure on food supplies and security, fuelling renewed interest in technologies that can improve supply-side efficiency in the food value chain.

See annual funding charts, and every underlying round in each high-growth category in Europe (and click to remove the Europe filter to see global trends).

1. Vertical farming
2. Agritech
3. Alternative protein
4. B2B online marketplaces
5. Enterprise Saas

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