Foodtech

Hungry for more

Last updated: 1 Jun 2023

Market 101

Foodtech — defined by Sifted as foodstuffs, ingredients and technology used to produce food eaten by humans or animals — is suddenly the flavour of the month again. The consolidation of the speedy groceries sector — which proved to be an expensive distraction — has prompted a fresh wave of foodtech enthusiasm.

The tech itself appears to be improving too, as companies find innovative ways to improve quality and scale production — but lots of carnivorous consumers are yet to be convinced by lab-grown alternatives. Soon, they may not have a choice. With populations and emissions spiralling, our agricultural systems are nearing breaking point or “farmaggedon”.

Plant and microorganism-based foods haven’t quite lived up to expectations but interest in cell-based proteins — where stem cells are cultivated in labs to produce meat-like products — have taken the biscuit after a surge in funding in 2022. The US and Israel have already approved the latter for human consumption, giving runway for European regulators to follow suit and hurry their deployment to supermarket shelves.

Early stage market map

Key facts

30%

Jump in funding for European foodtech startups in 2022, compared to a 5% increase for agritech¹

50%

Expected increase in food demand by 2050²

11x

Funding growth of Austria’s foodtech hub in 2022 — the fastest-growing in the world (Saudi Arabia was closest with 4.4x)³

Startups tracked by Sifted

Sifted take

Foodtech has been on the boil this past 18 months. Whether it’s complex fermentation or molecular farming, the sector is far from reaching its potential, and will soon have a full plate with more mouths to feed globally. Regulatory hurdles — for example for lab-grown meat — as well as wobbly public opinion, with many still unconvinced by alternative food sources, will be tough to overcome. On the other hand, with overhyped investments like quick commerce or vertical farming dying or dead, it’s possible to see below the froth and identify the clear foodtech specialities on the rise in Europe (insect-farming and B2B marketplaces are two obvious ones). And with tech valuations cratering over the last year, investor appetite for relatively cheap bets may rise again with them.

Rising stars

Onego Bio

Alternative protein produced

Animal-free egg white producer

Total funding

Undisclosed

Helsinki, Finland
2022

Has developed a way to produce completely animal-free egg whites using a precision fermentation process, not unlike making beer or kimchi. It raised a €10m seed from Agronomics and Maki VC in February 2022, despite its product still waiting on regulatory approval.

Round

Seed

Valuation

Undisclosed


Date

2022

Size

€4.5m

Julienne Bruno

New foods

Plant-based food

Total funding

€6.9m

London, United Kingdom
2020

Planet-based cheese producer — specifically, dairy-free burrata and stracciatella alternatives — that was backed by Seedcamp, Cherry Ventures, Outsized Ventures, Nicoya in its November 2022 £5m seed round.

Round

Seed

Valuation

Undisclosed


Date

2022

Size

€5.8m

OLALA! (ex Seafood Reboot)

New foods

Vegan fish alternatives

Total funding

€4m

Paris, France
2021

A spin-off of the algae specialist Algama, Seafood Reboot is developing a range of plant-based seafood products from salmon and spreads to tuna, using algae as the main ingredient. It counts Demeter Partners, Senseii Ventures, Founders Future and Beyond Impact among its investors.

Round

Pre-seed

Valuation

Undisclosed


Date

2022

Size

€4m

WNWN Food Labs

New foods

Chocolate alternatives

Total funding

€5.1m

London, United Kingdom
2021

WNWN’s (pronounced “win-win”) proprietary fermentation technology can create a full range of ethical and sustainable chocolate alternatives while using local and abundant ingredients, such as barley. It last raised in February 2023, in a round led by PeakBridge along with PINC, HackCapital, and Investbridge AgriTech.

Round

Seed

Valuation

Undisclosed


Date

2023

Size

€5.1m

Early stage startups to watch

Agroloop

Budapest, Hungary
2020
Series A

18m

18m

-

Animal Alternative Technologies (AAT)

Cambridge, United Kingdom
2020
Seed

3.4m

3.2m

-

Better Dairy

London, United Kingdom
2019
Series A

22m

20m

-

Blue Farm

Berlin, Germany
2021
Seed

5m

3m

-

Bluu Seafood

Berlin, Germany
2020
Seed

7m

-

-

Cocuus System Iberica

Cizur Menor, Spain
2017
Seed

2.5m

2.5m

18m

Entocycle

London, United Kingdom
2017
Series A

10.5m

5m

23.4m

Fooditive

Rotterdam, Netherlands
2018
Series A

3.5m

850k

-

Formo

Berlin, Germany
2019
Series A

44m

40m

-

Gourmey

Paris, France
2019
Series A

57.3m

48m

-

Greentech Innovators AS

Bergen, Norway
2018
Seed

1.5m

700k

6m

Happy Ocean Foods GmbH

Munich, Germany
2020
Pre-seed

1.3m

500k

-

Hoxton Farms

London, United Kingdom
2020
Series A

23.2m

20m

-

Innocent Meat

Rostock, Germany
2017
Seed

180k

180k

-

Ivy Farm

Oxford, United Kingdom
2019
Series A

40m

30m

75m

JULIENNE BRUNO

London, United Kingdom
2020
Seed

6.9m

5.8m

-

Karma Kebab

Amsterdam, Netherlands
2020
Pre-seed

1.4m

1m

5.5m

Libre foods

Barcelona, Spain
2020
Seed

2.2m

2.2m

-

Lovely Day Foods (Makers of Perfeggt)

Berlin, Germany
2021
Seed

-

-

-

Meatable

Delft, Netherlands
2018
Series A

57.1m

42.7m

-

Mushlabs

Hamburg, Germany
2018
Grant

24.1m

15m

35m

Mycorena

Göteborgs Stad, Sweden
2017
Grant

35.1m

-

-

Neggst (Formerly Bettr Egg )

Berlin, Germany
2021
Seed

4.8m

2.8m

25m

NOVAMEAT

Barcelona, Spain
2018
Seed

8m

5.3m

-

OLALA! (ex Seafood Reboot)

Paris, France
2021
Pre-seed

4m

4m

-

Onego Bio

Helsinki, Finland
2022
Seed

14.5m

4.5m

-

Petgood

Stockholms kommun, Sweden
2020
Seed

-

2.5m

-

Rebel Meat KIDS

Vienna, Austria
2019
Seed

2m

500k

5m

Revo Foods

Vienna, Austria
2020
Seed

1.5m

1.5m

-

Revyve

Wageningen, Netherlands
2019
Series A

13.5m

8m

-

Solar Foods

Helsinki, Finland
2017
Grant

69.1m

34m

-

Stockeld Dreamery

Stockholm, Sweden
2019
Series A

19.8m

16.5m

-

Tebrito

Orsa, Sweden
2016
Seed

4m

2.8m

-

Tempty Foods

Copenhagen, Denmark
2021
Debt

330k

-

-

The Protein Brewery B.V.

Breda, Netherlands
2020
Series A

26m

22m

-

Time-travelling Milkman

Wageningen, Netherlands
2020
Pre-seed

1.5m

1m

-

Tomojo

Paris, France
2017
Seed

3.5m

3m

-

vly

Berlin, Germany
2020
Series A

5.1m

4.5m

-

WNWN Food Labs

London, United Kingdom
2021
Seed

5.1m

5.1m

-

Europe’s success stories

Who early stage startups are up against

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

Became the world’s best-financed insect-farming business in 2022 following a $260m Series D led by Qatar Investment Authority, with contributions from existing investors Creadev and Temasek, alongside global agricultural commodity traders ADM and Cargill Created in 2016, Innovafeed operates two plants in northern France that convert black soldier fly larvae into insect oil and feed for pets, fish, chickens and pigs

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

Another French startup, which produces insects for both pet and human food Raised €160m in April 2023 — taking it to $439m in total — from Bpifrance, Robert Downey Jr. and Astanor Ventures

(Pre-)Seed

SeriesA

SeriesB

SeriesC

SeriesD+

IPO/Exit

UK-based meal replacement startup that makes plant-based, low-carbon drinks, powders and protein bars Grew its annual revenue 40% in 2022 to $170m and raised a $24m Series B in December 2022 from investors including Idris Elba, valuing the company at $560m

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