The agrifoodtech sector is bracing for a challenging year ahead as founders and CEOs from startups across the industry share their concerns and the issues that are keeping them up at night. Foodtech editor Elaine Watson from AgFunderNews reached out to several companies she has covered to understand their anxieties, particularly focusing on the alternative protein space.
The startup ecosystem, known for its high-stress environment, is facing a particularly tough time. John Ireland, the founder of NTP Technologies, humorously compares his sleep to that of a baby’s—frequent and interrupted by worries. His company, which specializes in on-farm fertilizer production, is currently grappling with funding issues, a common theme echoed by many of his peers.
Todd Beckman, CEO of Verb Biotics, highlighted the regulatory challenges in bringing new probiotics and postbiotics to the market. The existing regulatory framework requires extensive animal toxicology testing, which is not only costly and time-consuming but also often bears little relevance to human safety. This has led to a trend where companies settle for strains with mediocre efficacy that are already recognized as safe, rather than investing in the discovery of more effective, novel strains.
Dr. Hermann Tribukait, co-founder and CEO of Atinary Technologies, is focused on scaling his team while preserving the company’s culture. As Atinary experiences rapid growth, finding individuals who align with the company’s values and vision is paramount. Similarly, Mariah Scott, CEO of Rantizo, stresses the importance of agtech companies demonstrating tangible value to growers, amidst skepticism towards Big Tech and an overload of data.
Christie Lagally, founder and CEO of Rebellyous Foods, is deeply concerned about the slow progress in deploying technologies for meat alternatives. Lagally underscores the urgency of addressing the environmental, health, and welfare issues associated with traditional meat production and the need for rapid execution in the alt-meat sector.
Pete Speranza, CEO of Wicked Foods, points out the waning confidence from the investment community in plant-based products. He calls for a reframing of the narrative and the emergence of successful products to regain momentum. Meanwhile, the politicization of the plant vs. animal-based debate is creating division rather than unity towards sustainable solutions.
Naveen Sikka, co-founder and CEO of Terviva, notes the shift of startups seeking capital from corporates. While he is confident these deals will happen, the concern lies in the long-term success of these partnerships to ensure continuous corporate investment.
Magi Richani, co-founder and CEO of Nobell Foods, highlights the scarcity of patient capital necessary for significant transitions to climate-friendly food solutions. She draws a parallel with historical technological revolutions and the role of government support in accelerating development, as seen in the case of Tesla.
Dr. Ali Khademhosseini, founder and CEO of Omeat, is kept awake by concerns over executing the vision for cultivated meat and the potential impact of macroeconomic conditions and public perception on the success of the field.
Jim Fader, co-founder and CEO of Eden Brew, calls for a shift from tech-push to customer-pull in the alt proteins sector. He emphasizes the importance of focusing on food experiences and health benefits to attract and retain customers.
Bryan Tracy, founder and CEO of Superbrewed Food, is concerned about breaking through investor unease, especially given the stalled commercial progress of large food-tech investments.
Frank Jaksch, CEO of Ayana Bio, is worried about the media scrutiny of ultra-processed foods but remains optimistic about the trend converging with a focus on ‘food as medicine,’ which could lead to healthier processed foods.
Mark Warner, founder and CEO of Liberation Labs, acknowledges that fundraising has been a significant challenge but insists it should not be an excuse for lack of progress.
The collective voice of these industry leaders paints a picture of a sector at a crossroads, facing financial, regulatory, and cultural hurdles. Yet, amidst these concerns, there is an underlying optimism and a relentless drive to innovate and push forward. The second part of this series will explore what these founders and CEOs are excited about as they navigate the complex landscape of agrifoodtech into 2024.