Despite the drop, the number of investments increased to 268 in the second quarter as activity rebounded following the collapse of Silicon Valley Bank in March, according to a PitchBook report.
Dive Brief:
- The median VC deal size in the food tech category declined for the first time in seven years to $3 million in the second quarter of 2023, a 12.4% decline from 2022, according to a PitchBook report.
- The decline in the average deal size contrasted with an increase in the number of investments. There were 268 deals in the second quarter, up 13.1% quarter over quarter, the report said.
- The increase in deal count for the quarter may indicate a return of investment activity after a pause due to the Silicon Valley Bank closure in March, the report said. However, the increase may “reflect a new, more careful paradigm at play,” particularly within the emerging fermented protein category.
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