Q3 2021
Emerging Tech Research: Foodtech
November 8, 2021
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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
Table of Contents
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.
Table of Contents
| Vertical overview | 3 |
| Q3 2021 timeline | 4 |
| Foodtech VC ecosystem market map | 5 |
| VC activity | 7 |
| Emerging opportunities | 19 |
| Alt-proteins: Fungi | 20 |
| Sustainable online grocery | 23 |
| Select company highlights | 26 |
| Revolution Foods | 27 |
| goPuff | 30 |