AgriFoodTech is declining again in 2026. However, we remain highly optimistic, both for funding itself, even if not for the short-term, and also for the direction AgriFoodTech is taking.
But before looking at the data, I wanted to quickly highlight the consequences of the heatwaves currently being experienced in Europe and the US. While most of the attention is given to the more visible effects of extreme heat on our health and the environment, such as wildfires, it also impacts the food industry. These consequences range from facilities being closed due to water restrictions to tens of millions of livestock animals dying. If we try to be optimistic, this summer of record heat may help to put back on the agenda the need for the food industry to transition towards more sustainable and resilient production methods, notably through innovation.
Funding is declining again in 2026
Quarter after quarter, AgriFoodTech funding continues to decline, even if more slowly than before. In the last quarter, the decline can be explained primarily by the absence of any “delivery mega deal”, which was a staple a few years ago.
Europe still outperforms
Compared to 2025, Europe is doing relatively well, as is Asia to a lesser extent. This can be linked to a series of large funding rounds for aquaculture companies, which require massive infrastructure investments. Grants, especially from the EU Commission, are also getting significant and help to support the European ecosystem.
The three reasons why we are optimistic
If we are honest, the investment graph above is not a cause for optimism. However, month after month, we are becoming increasingly confident that the AgriFoodTech ecosystem is near an inflexion point where things “will get better”.
First, more sizeable acquisitions are taking place. This is key: if investors bet on startups, it’s because they believe there will be an acquisition down the road. Recent examples include Huel (acquired by Danone), Grüns (acquired by Unilever), and Nukoko (acquired by Dölher). This is attracting more corporate attention for smaller deals and should eventually lead to more from investors expecting similar returns.
Then, external forces are shaking up the food industry to the point where leading companies are finally moving faster to adopt innovative solutions. This is due to a combination of factors, including climate events such as the heatwaves mentioned above, geopolitical shocks affecting commodity markets, and the current protein craze linked to GLP-1 drug adoption. All of these events are making agrifood companies’ shareholders reconsider the status quo. Currently, this translates into a series of mergers, divestments, top management reshuffles… We are quite confident that down the road, the new management teams will want to send the signal that they have understood the need for change, starting with product launches and eventually acquisitions.
Finally, and most importantly, many solutions developed by startups are nearing “market readiness”. After years of anticipation (and sometimes disappointments due to missed deadlines), a limited number of these solutions should reach the market later this year or in early 2027. If well marketed, they should make a significant difference and help restore confidence in the ability of the agrifood innovation ecosystem to deliver value.
