Like many segments throughout the enterprise funding panorama, the meals tech sector has seen a major pullback in funding over the previous couple of years. Nonetheless, in line with a brand new report from Pitchbook, there are early indicators that traders who’ve stored on the sidelines could slowly be pushing their chips again on the desk.
In accordance with Pitchbook’s Q2 2023 meals tech funding section evaluation, complete meals tech offers for Q2 elevated over the earlier quarter by 13.3% to 268 complete offers, up from 197 offers within the first quarter of 2023. Whole deal worth was down only a smidge, dropping to $2.2 billion in Q2 2023 from $2.3 billion within the first quarter.
The Pitchbook report states that the uptick in complete offers in Q2 could possibly be an early signal of a possible return of traders to the sector. In accordance with the report, there are indicators that traders have “important dry powder reserves and could also be slowly getting back from the sidelines to renew deploying capital.”
Taking a look at how the Pitchbook evaluation breaks down the meals tech sector by section, the largest total sector in Q2 was meals e-commerce, which accounted for over $1 billion in Q2. In accordance with Pitchbook, meals tech e-commerce deal values have been pushed by late-stage funding in firms like Getir, which nabbed a $475 deal in 1H 2023. Different huge offers of word within the first half included a $230 million deal in meal substitute startup Yfood (a deal which had Nestle buying a majority possession stake within the firm) and a $172M collection C funding in alt protein startup Meati.
Talking of alt protein, the Pitchbook evaluation is considerably bullish on the sector, predicting that the worldwide alt protein market will develop from $76 billion in 2023 to $423 billion in 2033, a compound annual development fee of 19%.
If you wish to learn the Pitchbook report, you may obtain a replica right here.
