In a week that has seen a mixed bag of fortunes for the agrifood tech sector, we’ve witnessed a resurgence in funding for some innovative startups while others have faced more challenging times. The foodtech funding landscape, which had been experiencing a slowdown, appears to be picking up momentum with several companies announcing successful funding rounds.
Crisp, a food delivery startup, has bucked the trend of its struggling peers by securing a substantial €35 million ($38 million) in a Series C funding round led by Target Global and Keen Ventures. The company has made it clear that the fresh capital will be channeled towards fortifying its presence in its two primary markets, the Netherlands and Belgium. This move is indicative of a strategic focus on growth and consolidation, rather than overextending in an unpredictable market.
On the other hand, Sunnyside, a company that offers a “mindful drinking” app to help users monitor their alcohol intake, has raised an impressive $11.5 million in a Series A round led by Motley Fool Ventures. This investment reflects a growing consumer interest in health and wellness apps that promote a balanced lifestyle.
Adding to the positive funding news, Le Fourgon, which is pioneering a reusable container business for beverages, has raised €10 million ($10.8 million) in a Series A round. With the increasing consumer and regulatory push against single-use plastics, Le Fourgon’s business model seems well-positioned to capitalize on the growing demand for sustainable packaging solutions.
The foodtech funding rounds didn’t stop there. Last.app secured a €5 million ($5.4 million) investment to expand its restaurant operating software across Europe, while Positive Carbon attracted €2.3 million in seed funding to combat food waste in commercial kitchens.
In the agtech funding arena, 4AG Robotics, formerly known as TechBrew Robotics, announced a hefty $17.5 million raise for its autonomous mushroom-harvesting robots. This technology has the potential to revolutionize the mushroom farming industry by addressing labor shortages and increasing efficiency. Similarly, Aigen Robotics secured $12 million to expand its solar-powered, autonomous ag robots, promising a sustainable approach to agriculture.
Bio-Logical also made headlines with a $1 million investment aimed at establishing what is touted to be Africa’s largest biochar production facility. This venture underscores the importance of sustainable agricultural practices and soil health in the face of climate change.
Mergers and acquisitions have also been active this week. Protein Powered Farms acquired Lovingly Made Ingredients, while dairy company Bauer joined forces with Kern Tec to introduce an alternative milk product made from upcycled apricot kernels, named Zum Glück, set to launch in January 2024.
In the realm of accelerators and grants, Material Impact revealed a new $352 million materials science fund, while the Grow-NY business competition awarded a $1 million grand prize to biotech startup Hypercell Technologies. Additionally, the USDA announced a $28 million investment to support beginning farmers and ranchers.
However, it hasn’t been all positive news. Bowery, a heavyweight in vertical farming, has been hit with layoffs amid a valuation downturn, signaling potential turbulence in the sector.
The fluctuating fortunes in the agrifood tech space show a sector that is at once ripe with innovation and facing the realities of a challenging economic climate. As some companies secure the funding they need to grow, others must navigate layoffs and restructurings. What remains clear is that the agrifood tech industry is a critical component of our future, addressing everything from food waste and sustainable packaging to the health and wellness of consumers. As such, the ebbs and flows of funding and company fortunes are not just business as usual but are indicative of broader trends that could shape our world in the years to come.