Emerging Tech Research: Foodtech

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Fast foodtech: Dealmaking speeds along as sustainability, digitization drive VC interest

The foodtech industry continued its unrelenting pace of growth in Q3, with $10.1 billion in venture capital invested bringing the year’s total to $28.8 billion—already up 85% over 2020. It's a surge that's expected to continue into next year, according to our latest Emerging Tech Research on foodtech, as the dual trends of increasing digitization and a focus on sustainability drive a flood of capital into the sector.

Key takeaways
 

• The rise in VC funding has put upward pressure on deal sizes, with median early- and late-stage VC rounds both reaching record highs through Q3.

 

• Fungi are driving deals in alt-proteins, as substances such as mycelium feature as the core ingredient in fermented proteins, helping mimic meat products.

 

• Following the initial pandemic spike, online grocery startups have continued to attract funding thanks to their potential to support sustainability initiatives.