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Where $9bln has gone missing in 2024
Chart of the Week – Where $9bln has gone missing in 2024
The agri-food greentech sector has seen a savage year for company-level fund-raisings, in the first three quarters this year, down 73%, compared to the same period in 2023, New Food Finance data show.
Our chart of the week shows that some of the biggest falls have been in plant-based alternative protein, selected precision ag technologies, green hydrogen-based fertiliser, and biological pesticides, all down more than 75%.
Some of the bigger, more resilient themes include biostimulants (unchanged at $360 million), cultivated alternative protein (down 15% at $168 million), on-farm robots (up 400% at $209 million), and carbon credit origination (up 190% at $329 million).
Overall, startup fund-raisings in a green transition in food production have fallen to $3.4 billion through mid-September, from $12.6 billion in the first three quarters of last year.
The size of drop, the prospect of interest rate cuts, and pent-up deals may point towards an imminent upswing. Rate-setter language increasingly signals cuts, including in the United States, which will favor VC investment, which accounts for the bulk of startup fund-raisings.
At New Food Finance, we analyse the sectors, sub-sectors, markets and technologies that define a green transition in food production.
Three of the biggest deals in a green transition this year to date are:
Indigo Ag – $270 million – Indigo has three core business themes: carbon credit generation; sustainable crop inputs; and market-making
Oishii – $149 million – Producer of vertically farmed strawberries
Inari – $103 million – A seed design company with two key technology platforms, predictive design and gene editing
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“Green Transition” Deals of the Week
In our “Green Transition” space last week, we saw nine fund-raisings worth over $165 million, and one acquisition:
Denmark, September 13 – MATR Foods ($22.17 million) uses fungi fermentation to create plant ingredients. It raised $22.17 million in debt funding from the European Investment Bank.
Spain, September 12 – Novameat ($19.27 million) – Novameat uses 3D printing to produce meat substitutes from plant proteins. It raised $19.27 million in funding led by Sofinnova Investments, Praesidium, Unovis Asset Management, and others.
Australia, September 12—Number 8 Bio ($4.71 million)—Number 8 Bio developed a yeast to produce methane inhibitors for animal feed, reducing emissions. It raised $4.71 million in pre-venture capital funding from Main Sequence and others.
Denmark, September 12 – REDUCED ($6.65 million) – REDUCED, a biotech firm in Copenhagen, creates flavor solutions from upcycled food waste. It raised $6.65million in funding led by Novo Holdings and others.
United Kingdom, September 12 – SOLASTA Bio ($14 million) -SOLASTA Bio develops neuropeptide-based insect control agents that target pests while leaving beneficial insects unharmed. It raised $14 million in venture capital funding.
United States, September 12 – Solar Biotech (Undisclosed) – Bankrupt SolarBiotech fermented food ingredients using solar-powered electrolysis. Its assets were acquired out of bankruptcy by Pictor Biotech; terms are undisclosed.
France, September 10—Calyxia ($35 million)—Calyxia Designs and manufactures eco-engineered microcapsules to enhance product performance. It raised $35 million in venture capital funding led by Bpifrance, Astanor Ventures, and Lombard Odier Group Investment Managers.
Germany, September 10 – Formo ($61 million) – Formo uses precision fermentation to create dairy substitutes. The company raised $61 million in funding led byFoodLabs, EQT Group, Lowercarbon Capital, and others.
Israel, September 10 – MNDL Bio ($2 million) – MNDL Bio, a SynBio startup, optimizes gene expression for food and hashtag#biotech applications. It raised $2 million in pre-venture capital funding from undisclosed investors.
Finland, September 10 – Solar Foods (Listing) – Solar Foods produces Solein, a protein via bacterial fermentation using renewable energy. The company completed a technical listing on NASDAQ.