According to a new report by PitchBook, foodtech VC investment fell sharply in the first quarter of 2025, with deal value down 49.6% QoQ.
$1.4 billion of venture capital was invested over 202 deals in Q1, representing an annual run rate of $5.6 billion over 808 deals. In comparison, $10.3 billion was invested over 1,127 deals last year, while a huge $49.8 billion was invested over 2,721 deals in 2021.
According to PitchBook, dealmaking has been slowed by high investor selectivity. However, alternative proteins have done relatively well — they were the second-largest foodtech investment category over the past 12 months, with $1.7 billion invested over 199 deals despite headwinds facing the industry. Within the category, fermentation was particularly successful.
Notably, Food Brewer — the Swiss producer of cultivated cocoa and coffee — raised $10.2 million in VC funding in Q1 2025, more than any other pre-seed or seed foodtech startup. PlantBaby, a US producer of plant-based child nutrition products, also made the top five, raising $4 million.
“Bright spots”
Last year, GFI research found that the cultivated meat and fermentation industries continued to grow, despite a drop in investments. Furthermore, investments in innovative food reportedly made a “remarkable recovery” in the APAC region in 2024, increasing by 85%.
“While high investor selectivity has slowed dealmaking, bright spots emerged in specific segments,” said Alex Frederick, Senior Research Analyst, Agtech and Foodtech, at PitchBook. “Restaurant tech startups Tapcheck and Dorsia closed outsized rounds, while functional foods stood out as a significant opportunity, evidenced by PepsiCo’s $1.7 billion acquisition of Poppi and Olipop’s nearly $2 billion valuation.
“Alt-proteins, particularly fermentation, remained active as well despite broader headwinds for the space. Meanwhile, strategic M&A continued to dominate the exit landscape.”
