- VC funding in meals tech greater than doubled in 2021 reaching $39.3 billion, Pitchbook experiences.
- Insider spoke to 10 VCs funding the meals tech trade on how they selected which startups to again.
- From round meals chains to fermentation, VCs share how they spot traits and keep away from dangerous investing.
In 2021, VCs invested $39.3 billion into meals tech corporations in response to a report by PitchBook. The report acknowledged the areas of meals tech that acquired record-breaking investments embrace biotech-derived meals, packaging, and waste administration.
Different protein startups have led the pack with British firm THIS, based in 2018, elevating a $14.5-million Collection A spherical in June 2021, and US-based legacy firm, Unattainable Meats, elevating $500 million in November 2021, in response to Crunchbase.
With any booming market, the chance of being swept up by the hype and pumping cash into an organization that is not viable is substantial.
The closure of two super-fast meals supply startups in a single week, as reported by CNN, is an instance of this danger.
Fridge No Extra and Buyk, based in 2020 and 2021 respectively, had collectively raised $62.9 million in VC funding since their inception in response to Crunchbase. Each corporations ceased operations in March 2022.
Insider spoke to 10 VCs at 9 companies energetic within the meals tech startup trade on how they choose a startup’s profitability and what traders on this area ought to search for.