Factors of 63 Food tech investment has been relatively quiet, as have many other venture-backed industries in recent months.
There were some larger deals in the third quarter. Meati Foods took in $150 million for its mushroom root-based protein meat. This is still the best alternative food photo I have seen since my start covering this sector two year ago.
Planted was also able to raise $72 million for its whole-cuts of vegan chicken
PitchBook reported last week that $2.7 billion was invested in 269 deals for the third quarter. PitchBook defines “food tech” as including everything plant-based and grocery tech.
The data and research company noted that both investment values and count were down 63% and 28.5% quarter-over-quarter, respectively. The company also noted that deal values fell for the fourth consecutive quarter. They dropped to a 10-quarter low and were at levels not seen since Q12020.
The Good Food Institute analyzed alternative protein deals to find that $420 million was invested in these companies during the third quarter. According to GFI’s analysis, PitchBook data shows that this is a decrease of $833 million for the second quarter and $911 millions for the first quarter.
Some VCs might be scared off by this, but others continue to believe in it.
Elly Truesdell is the founder and managing partner of New Fare Partners. She stated via email that many tech investors have ignored key fundamentals such as taste, brand, and consumer trust when placing bets on foodtech companies.
Truesdell said that the next generation of businesses will have better results if they prioritize this and use tech to make great food, brand experiences, and access to both.
Lisa Feria, Stray Dog Capital’s partner and CEO, stated via email that the same macroeconomic and geopolitical factors of 63 which are affecting the public markets as well as the global venture environment are driving down foodtech venture funding.
She pointed out that the sector’s decline in recent years was due to factors of 63 such as crossover investors who entered and then fled the market “due to the turmoil in the markets”, which led to an outflow capital.
In addition, the industry saw initial double-digit growth, but this has slowed down in the last year.
Reports also mentioned major industry players who “led some people to question whether innovations for plant-based meat alternatives can deliver on their early promise of taking a substantial market share from traditional beef.”
Feria still has a “very positive outlook” on this sector, despite the investment setback. Feria said that the industry was still in its “early innings” in the development and production of innovative food products.
She said that the alternative protein market has lots of potential and there are many new products that offer amazing price, taste, and texture improvements.
“Ultimately, the sustainability story is what drives the need to food innovation. We cannot achieve our climate change mitigation goals without moving away from animal agriculture, which is one of the most polluting and destructive industries in the globe.
Another cell-based meat producer is poised for its products to be introduced in restaurants.
SAVRpak president Scott Nelson stated via email that the company is working with Mexico’s online grocery store, Justo Partners. This will allow Justo to become the first market for SAVRpak’s plant-based thermodynamic pouch.
It removes 50% of condensation which can lead to mold and early spoilage. Also, it prevents new condensation from forming.
This allows strawberries to last up to three times longer. Although the company works with Sysco and other food distributors, it also deals directly with customers.
Nelson said that Justo was one of our first retail customers. However, we will soon make more announcements as we have several pilots/trials underway across over 30 farms as
well as grocers throughout the U.S., Canada. SAVRpak will be available in individual packages of your favorite berries and greens in select supermarkets beginning this spring. We’ll also announce our consumer retail product in January with one of America’s largest big-box retailers.
Upside Foods also announced this week that it had concluded that its cultivated chicken product was safe for consumption.
This announcement was made alongside the U.S. Food and Drug Administration. Uma Valeti, Upside founder and CEO, stated, “Cultivated beef has never been closer to the U.S. marketplace than it is today.
“ This landmark FDA announcement is the first step in the regulatory process.
Paul Sawers: “Meatable is a VC-backed Dutch firm that recently launched its first product line in the form synthetic sausages. Today, it announced a partnership to Love Handle, a Singaporean food startup, to create what it calls “the world’s first hybrid beef innovation center.”
Future Meat Technologies, an Israeli-based technology company for cultivated meat, changed its name to Believer Meats.
It stated that the company’s rebranding was “a big step towards the wider strategic transformation of Future Meat into technology-rooted foods company as Believer prepares to launch its product.” They expect to open a commercial-scale facility in the United States before the end of this year.
Juicy Marbles, a brand that makes beef products like steak, has unveiled The Whole-Cut Loin. It is a two-pound, 100% plant-based meat product in what it calls “the largest piece of plant muscle”
GOOD Worldwide purchased This Saves Lives, a humanitarian snack company founded by Ryan Devlin and Ravi Patel. Financial information was not disclosed.
12 finalists were selected to take part in a 6-week mentorship program as part of the UAE Ministry of Climate Change and Environment’s FoodTech Challenge. Four startups will be chosen to receive the $2 million pooled prize in early 2023.
GOOD Meat, Eat Just’s cultivated meat division, presented a new version its cultivated chicken at COP27 in 2022. According to Eat Just, this is the first time that meat made from animal cells has been displayed outside of Singapore in two years.
My inbox contains other news:
Bright Biotech, a startup in molecular farming, has received seed funding of $3.2 million from FoodLabs to fund R&D on a new method for genetic engineering growth factors of 63 for cell-based meat production.
central fall out coverage of funding and other food stories:
You can also find it elsewhere:
Freight Farms raises $17.5M Series B3 in order to address the issues of access and sustainability within the food system via container farming