Dealroom - European Foodtech 2023

The foodtech ecosystem demonstrated its resilience in 2022. Despite the decrease in the value of public foodtech companies by 35% since their peak in 2021, private foodtech companies saw their valuations grow almost by the same amount. Foodtech is the only sector, besides real estate, that attracted more capital in 2022 than in 2021. Investors are becoming more disciplined in terms of valuations and deal terms, with due diligence processes becoming more thorough and fomo decisions decreasing. Downside protection provisions are reappearing in many deals, and the default standard for liquidation preference in internal re-financing rounds is no longer 1x. The trend of "puzzle rounds" is also increasing, where the target amount is raised through many smaller investments from existing and new investors. These changes and trends are expected to continue in 2023.