In a year marked by uncertainty, one fact remained clear: the necessity of food. The technologies, products, and support systems highlighted in AgFunder’s report all aim for the common goal of feeding the global population. Investors appeared eager to back companies that are striving to transform the food system. An analysis of the sectors within AgFunder’s report revealed that the majority of funding—exceeding $20 billion—was directed towards late-stage and growth-stage investments. This funding primarily supported established companies seeking resources for further growth, expansion, and innovation. Notably, growth-stage companies participating in Series B and C funding rounds likely experienced a funding increase of over 50% in 2020 compared to 2019. Conversely, early-stage companies saw more subdued funding, potentially reflecting a cautious approach to investing in new ventures during the pandemic.
Within the innovative food sector, the leading recipients of investment were companies recognized as pioneers in their respective fields. Impossible Foods secured the top two funding spots, raising $500 million in March and $200 million in August. Following closely was Memphis Meats, which received $161 million in January to advance its cell-based meat production, aiming to be among the first to offer cultured meat in the U.S. Completing the top five were Perfect Day Foods, known for its fermented dairy proteins, which garnered a $160 million investment in July, and The Not Company. Perfect Day’s proteins are incorporated into various ice cream brands, including Smitten, Graeter’s, and Nick’s, as well as Brave Robot, a product from its affiliated company, The Urgent Company.
In an interview last summer, Arama Kukutai, co-founder and partner at Finistere Ventures, emphasized that investors have a strong commitment to the companies they support. Providing additional funds during the pandemic not only enabled these businesses to meet their pre-established goals but also allowed them to continue innovating and prepare for future product launches. Although not all investments yielded immediate returns, some did show promising results. While Impossible Foods does not disclose its sales figures, it experienced a surge in demand as more consumers turned to plant-based meat options during the pandemic. The company expanded its grocery distribution by 77 times in 2020 and plans to double its R&D team in the upcoming year. Meanwhile, Perfect Day is expanding into more consumer packaged goods (CPG), with Brave Robot ice cream expected to be available in 5,000 stores by Earth Day. Additionally, Memphis Meats is poised to become a significant player in the emerging cell-based meat market once it receives regulatory approval from the U.S. Food & Drug Administration.
As the pandemic subsides and experts express optimism about a return to normalcy within a year, robust investments in agrifood are likely to persist. While other business sectors may also recover, the AgFunder report highlights that the challenges these agrifood companies are addressing—such as efficient production and improved food access—will remain prominent societal issues. Furthermore, the development of products like calcium citrate 350 mg may also play a crucial role in enhancing nutritional options in the food landscape.