Investments are still declining in France

French FoodTech startups raised €260M in 2024 (up to Q3) and we project they will raise about €350M by the end of the year. That would be 51% less than in 2023 and 68% less than in 2022 when the ecosystem reached its peak.

The French FoodTech ecosystem seems to have a « lag » of about one year compared to what has happened in the rest of the world. Indeed, most ecosystems reached a high in funding in 2021, then saw a decline and a stabilisation. French FoodTech’s high point was reached in 2022. It may have reached its low point in the second quarter of this year. From there, we could expect a stabilisation and an eventual increase in funding in 2025 or 2026 if the bounce back observed elsewhere is confirmed.

The current decline is somehow unexpected as the French ecosystem is highly focused on B2B startups, notably in AgTech and Food Science, two areas that are doing quite well globally. It can be explained by the absence of « mega deals » (€100M) over the past 18 months.

Also, the strong decline in seed and Series A deals (in younger startups), as well as the overall decline in the number of deals, are worrying signs. They give the image of investors lacking confidence in the longer-term potential of French startups to deliver results (and attract acquirers). However, beyond investments, we also currently observe a surge in partnerships announced between startups and leading companies, notably for AgTech and Food Science startups.

Our partner: FoodPath

The project is engaging actors from across the food system to co-create a first version of the future European Partnership for Sustainable Food Systems for People, Planet & Climate. It is foreseen to be launched and accompanied in 2024 based on the experience gained during the project’s lifetime, such as on:

• Food system approaches and an Observatory;
• Future joint funding mechanisms to maximise the impact of R&I;
• A Hub for Food Systems Labs mobilising actors in Europe and globally.
• A Strategic Research & Innovation Agenda (SRIA) that provides suggestions for actions;
• The creation of a ‘sustainability branded’ network of European universities.

Learn more about FoodPATHs