Q1 2022 Foodtech Report | PitchBook

VCs pull back from foodtech sector amid market recalibration

Venture funding for the foodtech industry experienced a pullback in Q1, with $6.9 billion funneled into 359 deals, representing a quarter-over-quarter decline of 40.8% and 13.3%, respectively. This may indicate the first step in a larger market recalibration, but the true impacts of the macroeconomic climate aren’t yet visible in the data.
 
Our latest emerging tech research provides a detailed look at the foodtech landscape, diving into emerging opportunities in areas like continuous glucose monitors for personalized nutrition and 3D food printers. The report also offers a detailed ecosystem market map and league tables showing the most active foodtech accelerators, VC investors, strategic acquirers and more.    
 
Key takeaways
 

• Public market volatility contributed to a decline in exit activity in the foodtech sector, which recorded only two public listings and one buyout, a stark contrast to 2021.

•  Despite a funding dip, valuations continued to experience upward pressure. This resulted in record highs across all VC stages, with the greatest growth taking place at the early stages.

• Meal kits waned in popularity during the mid-2010s but regained popularity at the start of the pandemic. Despite supply chain issues and inflation, Q1 saw several investments in the space, a possible indication that VCs continue to be optimistic about its market opportunity.