Despite the barren funding landscape, there has been some traction for early-stage alternative protein startups, according to a Pitchbook report.
What happened
Funding for food tech startups "slowed significantly" in the first quarter of the year as investors shift their focus toward artificial intelligence, according to a Pitchbook report.
The food tech sector captured $1.4 billion in investments across 202 deals in the first quarter, Pitchbook said. That's close to a 50% drop in capital and a 15% decline in deal count year over year.
Why it matters
Some investors are pulling back from the food tech sector all together. The number of unique investors with deals in the space declined 54% from its 2021 peak through the first quarter of 2024.
Investors are passing up potential opportunities in food tech to pursue flashier plays in artificial intelligence.
Around 70% of venture capital in the first quarter went to startups focused on AI and machine learning, according to Pitchbook. With limited AI applications for the food industry, investors may be passing on certain deals to get in on the automation boom.
This news brief is based on reporting published by Food Dive on 2025-06-10. The original report is linked below.
Food Dive
https://www.fooddive.com/news/food-tech-vc-investment-startups/750371/This independent news brief is based on the public source identified above. It is an original summary or translation, not a reproduction of the source article. Rights in source text, research, trademarks and images remain with their respective owners; images are used under the licence or permission identified in the credit. Rights holders may contact rights@goodproductasia.com with evidence of ownership. Verified concerns will be corrected, replaced or removed promptly. This report is not investment, legal, medical or purchasing advice.
