burger menu
✕
Subscribe
✕
Subscribe

📊 Top deals in H1 2022 + Now, what’s next?

Published on July 6, 2022

Hi,

Finally, it’s summertime! Before going to the beach, let’s look back on the first half of this year for the FoodTech ecosystem. In a word, let’s say that it was rockier than expected.

After a couple of years of expansion, ever-growing valuations and bigger deals (we went from a world where raising $1M was noteworthy to one where a $20M series A was small potatoes). Now, things are calming down fast. Deals and valuations are much more reasonable (when they happen). We observe the start of what we expect to be a succession of startups announcing layoffs and departure from “non-strategic markets” (i.e. geographies or ventures where the ability to make a profit was at best shaky).

Looking at the 15 top deals announced in the first half of 2022 in Europe (graph below), we can see that massive deals still went ahead, even if they are far less massive than last year. Beyond, three elements are striking:

1 – the diversity of the categories of the startups that raised the most: we went from a situation where it was quick-commerce only to a focus on the four major FoodTech categories (see here for the definitions).

2 – the diversity of countries: again, if we can see the leaders (UK, Germany, Nordics? the Netherlands), many other areas are represented

3 – a bitter note with Starship Technologies, which is now considered US-headquartered (hence, we’ll remove the startup from further rankings and Europe-related reports). We observe a small but growing flow of startups quitting Europe to expand in the US to find a bigger (and more receptive) market which still getting funded in Europe.

And now, what’s next?

I remain strongly optimistic. The recent growth of the FoodTech ecosystem was led mainly by investments into startups working on the long-term and massive trends that are here to stay, such as automation, alternative proteins, sustainable farming and online groceries. However, there is a downturn, and we will still be in it for the next 12 months, and things may get worse before they get better.

If raising funds is getting harder, notably from VCs, I do think that there is still no better time than right now for entrepreneurs to launch a new FoodTech venture. Similarly, for food corporations, it is the best timing to plan for the future by investigating, supporting and investing (at a discount) in the ecosystem!

Subscribe to our weekly newsletter

Abonnez vous à notre NL mensuelle en Français

Related posts

You're in a good company

Join the 60+ clients of Digital FoodLab: leading agrifood companies, retailers, banks, investors, startups, and public organisations.

✕

Use case: project for a global F&B company looking to map its AgTech innovation ecosystem and the best startups to partner with

What we did:

  • Mapping of the AgTech ecosystem: startups, research regulators, and other leading companies.
  • Discussion to select areas to focus on.
  • Analysis of the information to reveal the trends and a model to analyse eventual partners.
  • A workshop to validate the opportunities based on our recommendations.
  • Scouting of relevant partners followed by introductions.

Results:

  • Mapping the different categories of innovations in AgTech that should be considered now to create long-term benefits for the business.
  • Identification of key partners (an incubator and a couple of startups).
✕

Use case: project for a CPG company on the healthy ageing ecosystem

What we did:

  • Education of the board through a couple of workshops to define the perimeter
  • Identification of key opportunities and threats created by long-term evolutions (technologies, business models, behavioural changes).
  • Deep dives on each of the priority categories.
  • Co-construction of a vision on how the company should address these challenges.
  • Identification of partners (startups, incubators, funds) to move forward.

Results:

  • Creating a consensus on which categories to prioritise and how to address them.
  • Implementation of an open innovation strategy through the development of partnerships.
✕

Use case: project for a global CPG company to develop a strategy on the healthy ageing ecosystem

What we do (ongoing mission on a subscription model):

  • Kick-off where we present an overview of the AgriFoodTech ecosystem to select with the client the categories to cover and for each, the level of information required.
  • Monthly newsletter: each month we send a newsletter with the articles that we have gathered ranked by relevance, their summaries, and a layer of analysis.
  • Database: we set up a personalised database that will be filled month after month with the information gathered on the companies identified for the watch.
  • Workshops: twice a year with the client’s innovation team and other “innovation curious” team members, we present an overview of the evolutions, key trends and a dashboard of the topics followed by the watch.

Results:

  • A clear, regular and evolutive tool to follow what is happening in terms of innovation on key topics.
  • A forum (through the workshops) to discuss innovation trends and new opportunities.
✕

Use case: opportunity screening for an ingredient company

What we did:

  • Kick-off to define the perimeter of the ecosystem studied.
  • Mapping of the different trends shaping the innovation ecosystem of the client.
  • Analysis of the trends on DigitalFoodLab’s trend curve and other relevant frameworks.
  • Workshop to discuss DigitalFoodLab’s recommendations on key trends to prioritise

Results:

  • Shared view of the innovation ecosystem for the client with a view of the trends to prioritize.
  • Clear document (personalised trend curve) that can be easily shared internaly to explain the company’s innovation choices and which can be then updated each year.
✕

Use case: scouting for an agriculture coop

What we did:

  • Kick-off to define the perimeter of the client, the goals of the scouting (partnerships) and the criteria on which startups should be evaluated.
  • Set-up scouting: we selected the first batch of 20+ key startups following the criteria of the client.
  • On-going scouting: then we set up a quarterly scouting of about ten startups.
  • For each scouted startup, we created an ID card with key information such as the business and technological maturity, funding, and corporate partnerships. We also added an explanation of why we selected this startup.

Results:

  • An ongoing and evolutive scouting are matching the client's criteria and its capabilities in terms of deal flow.
✕

Use case: working on an acquisition process for a CPG company

What we did:

  • Kick-off to define what the client is seeking, notably in terms of maturity.
  • Workshop with the client based on a mapping of the different innovation ecosystems adjacent to its activities to select some priorities and discuss inspiring examples of startup acquisition stories.
  • Identification of 20+ targets.
  • Workshop to select the most relevant to engage with.
  • DigitalFoodLab worked as a sparing partner during the acquisition process, notably to help design how the acquired startup could be integrated into the overall company’s strategy.

Results:

  • Different results from traditional M&A processes with a focus on the client’s innovation strategy.
  • Identification of a good match for an acquisition.
✕

Use case: market due diligence on sugar alternatives

What we did:

  • Kick-off with the client to discuss its interest on this category, its expectations and existing level of information (notably on the target company).
  • Mapping of the ecosystem to analyse the different existing alternatives and technologies to compare them.
  • Interview (calls) with relevant startups made by our internal biotechnology expert.
  • Recommendation on whether to invest or not.

Results:

  • Clear view of the ecosystem and of the reasons to believe (or not) in each sub-category.
  • Enforceable recommendations based on facts and expertise.
✕
Get in touch

5 rue Paul Dupuy
75016 Paris, France