Venture-capital investments in the food industry have grown as the pandemic has laid bare the necessity for more innovation, according to a new study from an investment fund that specializes in food and agriculture.
The study, from Finistere Ventures and Pitchbook, says that food and ag startups raised $22.3 billion in investments last year, a record that more than doubled the amount raised in 2019. Arama Kukutai, a partner at Finistere, told CNBC that much of this was due to shifts necessitated by the pandemic.
About $11.8 billion in investments went to e-commerce and delivery businesses, with $6.2 billion of that going to meal kits. Indoor vertical farms were another attraction, as investors saw the possibility of them being located close to urban markets and thus better able to handle shifts in demand. The largest 10 deals in agtech included four for vertical farms, topped by a $203 million deal with Revol Greens.
Kukutai said he expects to see ongoing investments in trends including plant-based milks and other alternative proteins, lab-grown meats and sustainable farming technology.
