The Food Tech Revolution Hits a Roadblock: A Look at the Decline in Funding in 2024

As I sat down to write this article, I couldn’t help but think about the buzz surrounding the food tech industry just a few months ago. It seemed like every other day, a new startup was emerging with a revolutionary idea that was going to change the way we eat. But as we’ve entered the second half of 2024, the enthusiasm has begun to wane. The numbers are in, and agrifoodtech investments have taken a significant hit.

Agricultural technology funding has seen a significant decline in the first half of 2024.

According to recent reports, startups in the agrifoodtech space have raised a mere $7 billion across 427 deals in the first half of 2024. This marks a significant drop from the same period last year, and it has left many wondering what’s behind this sudden decline.

“The current funding environment is tough, and it’s forcing many startups to rethink their strategies.” - Peter Bodenheimer, Food Tech Investor

I had a chance to catch up with Peter Bodenheimer, a longtime food tech investor and operator, to get his take on the current state of the industry. He believes that the decline in funding is a result of the industry’s growing pains. “The current funding environment is tough, and it’s forcing many startups to rethink their strategies,” he said.

One startup that’s feeling the heat is Upside Foods, a company that has been making waves in the cultivated meat space. The company recently let go of a couple of dozen employees amid a tough funding environment and industry challenges due to state-level political challenges to cultivated meat.

Cultivated meat startups like Upside Foods are facing tough times.

But it’s not all doom and gloom. There are still plenty of innovators out there who are pushing the boundaries of what’s possible in the food tech space. Take SharkNinja, for example, which has just launched the Ninja SLUSHi Professional Frozen Drink Maker. This commercial-grade slushy machine is designed for home kitchens and is a game-changer for anyone who loves a good frozen drink.

The SharkNinja SLUSHi is a commercial-grade frozen drink maker for home kitchens.

Another startup that’s making waves is Chef Robotics, which is emerging from stealth mode to showcase its new robot and announce early customer partnerships. The company’s robot is designed to automate food preparation and cooking, and it has the potential to revolutionize the way we cook.

Chef Robotics is emerging from stealth mode to showcase its new robot.

And then there’s The Thimus, a company that’s developed a device that reads brain waves to assess consumer reactions to food products. It’s a technology that has the potential to change the way we test and develop new food products.

The Thimus T-Box reads brain waves to assess consumer reactions to food products.

As I looked at the numbers and spoke to industry insiders, I couldn’t help but wonder what the future holds for the food tech industry. Will it continue to decline, or will it bounce back with renewed vigor? One thing is for certain - it’s going to be an interesting ride.