During the first quarter of 2023, the foodtech industry experienced a notable decline in deal count, with a decrease of 39.6% compared with the previous quarter. This resulted in a total of 197 deals worth $2.3 billion overall, a substantial drop from Q4 2022’s figures. The decline in funding and banking has been identified as the primary reason for this decrease, as it led to a drop in investor confidence.

Despite the challenges, some notable deals were still made, including meal replacement provider YFood’s $230 million late-stage VC round and fermented protein provider Meati’s $172 million Series C. These deals demonstrate that there is still significant interest and investment in the foodtech industry, even in challenging times.