After reaching a staggering $71 billion globally in 2021, AgriFoodTech investment has been on a steep decline. The numbers from H1 2025 continue this trend: funding dropped from $6.5 billion across 514 deals in H1 2024 to $4.1 billion across 308 deals—a 37% funding decline and 40% fewer deals. But here's what makes this different from a typical market crash: the quality of deals is actually getting better and has shifted towards new areas.
Discover the transformative trends in the FoodTech industry as investments diversify and Europe emerges as a hub for AgriFoodTech innovation. Learn about the current market dynamics and future projections in our new report series, "Decoding the FoodTech Transition."
It's no secret that 2022 was a challenging year for the food system. Following the shockwaves of Covid-19, supply chains were once again tested and made to bear the weight of the war in Ukraine. The global economic crisis also impacted Venture Capital markets and the FoodTech sector was no exception. We look back on what we've learned in the past 12 months and think about what it all means for the year to come.
The good news is: the AgriFoodTech investor landscape is changing fast, and improving. Over the past couple of years, we have seen a lot more specialist VCs emerging, not only with a true knowledge of the sector, but also with a very holistic approach when it comes to their investment thesis.
While FoodTech startups started burgeoning in the early 2010s, investments in the space only took off in 2016, as evidenced in our FoodTech Data Navigator. Indeed 93% of the $163B invested in the sector to date were deployed over the past 5 years, and this is also when 70% of all AgriFoodTech companies were founded.
Where they are, what they do, and who are the next ones? Two years ago, we created the FoodTech [...]
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