9fbtechreview.comDECEMBER - 2020leading segments within FoodTech captured over 50 percent of capital deployed in H1 2020, reflecting strong investor interest. Supply chain optimization solutions, smart appliances that help prepare foods with added ease, and platforms that make food procurement, preparation, and delivery decisions simpler are technologies also seeing significant growth in a COVID-impacted world. In fact, companies from the Finistere Ventures portfolio such as Good Eggs, Farmer's Fridge, and Tovala have already experienced strong growth, and improving customer acquisition metrics this year. The continued rise in awareness and concern around the impacts of meat production on the environment has brought about a boon for Alternative Protein financing.Alternative Protein start-ups are companies that leverage processing, formulation, and biotechnology to produce products and ingredients that replace animal-derived products. In H1 of 2020, Alt Proteins commanded 22.6 percent of capital deployed into FoodTech, reflecting the increase in investor interest in the sector that has been characterized by mega-rounds like those of Memphis Meats ($186.3M) and Perfect Day ($300M). While the Alt Protein sector holds great promise, deep technical challenges for biotech enabled food platforms combined with the capital intensity required to build operating facilities and marketing/channel investments, mean that this segment willneed deep-pocketed support and patient money to succeed.We have seen the first wave of successful alt-protein companies like Beyond Meat and Impossible Foods bring a first-mover advantage to gain consumer revenues and branding engagement. The next wave will need to show superior product delivery and improving economics, especially in fermented and cell-based products.ConclusionsAs we enter a new decade, it is our view that investment will continue to grow as consumer influence on the AgriFood value chain drivesthe need for innovation across FoodTech. With increasing scrutiny and interest in the environmental and social impacts of food production, corporates and start-ups alike will catalyze a wave of new and maturing start-ups and continued private investment to meet these challenges. Arama Kukutai
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