Quotes from Food Business News, January 3, 2024
By Caleb Wilson
The data provided by Pitchbook indicates that investments in early-stage food technology companies witnessed a consistent decrease throughout the third fiscal quarter of 2023.
In the quarter through 205 venture capital deals, funding for the food tech industry reached a total of $2 billion, which indicates a decrease of approximately 14% compared to the previous quarter. This decline in funds marks the eighth consecutive quarter in which investments in this category have been declining.
“We attribute the decline in venture-growth-stage funding to the pullback of nontraditional investors, which have limited capital availability for startups, particularly those in late and venture growth stages,” said Alex Frederick, senior analyst in emerging technology at Pitchbook. “These mature startups may need to explore costly, nondilutive financing options such as venture debt or seek new equity investors at reduced valuations.”
Companies that specialize in alternative protein, specifically those that prioritize plant-based and fermentation advancements, along with online grocery platforms, were responsible for the most significant deals in the quarter.
** To access the complete text, please click here **
