And 30% of the 28 leading agrifoodtech investors who responded believe the worst is yet to come for startups trying to raise capital. Some 44% were more positive, believing we’re at the lowest point now for startup valuations, while 11% believe we are “over the worst of it,” with “better times ahead.” The remainder said they didn’t know where we were in the cycle.
Despite the overwhelming agreement that startups will continue to face significant challenges in raising funds next year, some investors expressed surprise about the extent of failures and down-rounds in 2023, particularly in the alternative protein and vertical farming categories. These categories more than most in agrifoodtech have been supported by the entrance of generalist venture funds, but 2023 saw many of those funds run for cover, frustrating some agrifoodtech investors
Source: Worse is yet to come for agrifoodtech startup founders: VC survey
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