Foodtech Report

Foodtech funding falls as VC appetite for dealmaking diminishes

VC funding for the foodtech industry continued to experience a pullback amid macroeconomic headwinds in Q2. Startups around the world raised $5.6 billion across 275 deals—representing quarter-over-quarter declines of 21.5% and 32.8%, respectively.

Our latest Emerging Tech Research update provides a detailed look at the foodtech landscape, exploring industry opportunities such as ghost kitchens and molecular ingredients.

Key takeaways
 

• The foodtech sector saw a rise in exits—particularly acquisitions—as market volatility impacted fundraising for many startups, in turn boosting acquisition opportunities for strategic acquirers.
   
• Despite a funding dip, valuations and deal sizes continued to surge to new highs, with pre-money valuations up at every VC stage.
   
• Inflation and shifting consumer spending habits may create a tailwind for e-commerce-focused food suppliers that can minimize delivery and service fees.