THE BLOG

Insect farming is moving from niche experimentation to commercial scale. With rising demand for alternative proteins, the sector is now focused on capital efficiency. From modular and automated farms to AI monitoring and circular feedstock integration, innovative models are proving that smarter design — not just larger investment rounds — is the key to scaling insect production sustainably and profitably. Partnerships with feed and retail sectors are further validating commercial viability, creating pathways from farm to consumer.

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.

Vertical farming has moved beyond the hype cycle. With billions raised and some high-profile setbacks, the sector is now focused on what really matters: capital efficiency. From modular farms and co-location strategies to AI optimization and renewable integration, new models are proving that smarter design — not just bigger fundraising — is the key to scaling vertical farming sustainably and profitably.

Showcasing their dominance on the global stage, North American AgriFoodTech startups consistently represent over a fifth of the finalists in Forward Fooding's annual FoodTech 500. The region's ecosystem is thriving against a backdrop of global investment challenges, fueled by landmark funding rounds and pioneering advancements in precision farming, vertical agriculture, and alternative proteins.