And that’s what makes foodtech compelling, even if the sector isn’t booming right now. Q4 2024 was a rather limited time for foodtech funding, according to new PitchBook data. Though VCs invested $2.8 billion across 200 foodtech deals in Q4, that marks both a record low deal count and 19% decline from Q3 that same year. 

PitchBook’s data paints a picture of a sector filled with some haves, and lots of have-nots. On one hand, annual foodtech investment by VCs in 2024 was up 7.1% year over year, while deal counts fell by a notable 33% year over year. Well-established companies at the top of the food chain (pun, perhaps, intended) still were getting funded throughout last year. Take, for example, Zepto, an India-based grocery delivery startup, whose backers include General Catalyst, Y Combinator Continuity Fund, Mars Growth Capital, and StepStone Group. In 2024 alone, the company raised more than $1 billion across three rounds of funding, the most recent being a $350 million round in November. Consider, also: Marc Lore’s food delivery company Wonder, which raised $950 million throughout 2024 and announced in November that it would acquire Grubhub for $650 million in senior notes and cash. 

Additionally, back in May, mushroom-focused alternative protein startup Meati announced it had raised another $100 million in funding, building on its previously-announced 2023 Series C. The company’s backers include Bond, Acre Venture Partners, Revolution Growth, and Derek Jeter. (Mushrooms may be in, but cultivated protein companies seem to have fallen out of favor—in 2024, cultivated meat companies saw a 40% drop in VC backing.)

For early stage companies across foodtech, venture backing has been harder to come by, PitchBook’s data says. At seed and pre-seed, foodtech deal counts are down by 46% from 2023, while early stage deal counts are down by 44% from 2023. 

That’s not to say there’s been no early-stage-action. In November, for example, AI packaged goods manufacturing platform Keychain raised a $15 million Series A, led by BoxGroup and including existing investors like Lightspeed Venture Partners and SV Angel. Likewise, Planet A Foods—a company looking to make chocolate without cocoa—raised $30 million in its December Series B, with Burda Principal Investments and Zintinus among its investors. 

People have been innovating around food since the beginning of time—the ancient Romans pioneered early fast food establishments, and the first recorded food delivery was in 1889, a pizza to King Umberto I and Queen Margherita of Savoy. So, foodtech certainly isn’t going anywhere—we’re always going to be trying to find ways to eat better or faster. But it may take a moment before the space is “so back.”

See you Monday,

Allie Garfinkle
X: @agarfinks
Email: alexandra.garfinkle@fortune.com
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VENTURE DEALS

- Arize AI, a Berkeley-based AI observability and evaluation platform, raised $70 million in Series C funding. Adams Street Partners led the round and was joined by M12, Sinewave Ventures, OMERS Ventures, existing investors Foundation Capital, Battery Ventures, TCV, Swift VC, and others.

- 73 Strings, a Paris-based AI-powered data extraction platform, raised $55 million in Series B funding. Growth Equity at Goldman Sachs Alternatives led the round and was joined by Golub Capital, Hamilton Lane, and existing investors Blackstone Innovations Investments and Broadhaven Ventures.

- SmartSuite, a Newport Beach, Calif.-based work management platform, raised $38 million in funding. Canapi Ventures led the $13 million Series A round and was joined by Sorenson Capital and High Alpha. Cofounders Jon Darbyshire, Tara Darbyshire, and Peter Novosel led the $11 million and $14 million seed rounds.

- EG 427, a Paris-based genetic medicines developer, raised €27 million ($28.3 million) in Series B funding. Andera Partners and Bpifrance led the round and were joined by SCI Ventures and others.

- CredCore, a New York City-based AI-powered debt investment and management platform, raised $16 million in Series A funding. Avataar Ventures led the round and was joined by Inspired Capital, Fitch Group, BellTower Partners, and others.

- ClustroAI, a San Francisco-based edge AI technology developer, raised $12 million in Series A funding. Forum Ventures led the round and was joined by MetaBlast, Metaverse Group, and others.

- Millie, a Berkeley-based maternity care provider, raised $12 million in Series A funding. TMV and Foreground Capital led the round and were joined by Pivotal Ventures, March of Dimes Innovation Fund, BBG Ventures, existing investor Ingeborg Investments, and others.

- CTGT, a San Francisco-based AI risk management and deployment support platform, raised $7.2 million in seed funding. Gradient led the round and was joined by General Catalyst, Y Combinator, Liquid 2, Deepwater, and angel investors.

- Elvy, a Stockholm-based energy tariffs and assets provider, raised $3.5 million in funding from Essential Capital, Giant Ventures, and angel investors.

- CircNova, a Detroit-based RNA therapeutics developer, raised $3.3 million in funding. South Loop Ventures led the round and was joined by Dug Song, Union Heritage, Michigan Rise, and others.

- Proximity, a Chicago-based 340B drug discount revenue optimization platform for healthcare providers, raised $3 million in seed funding. LRVHealth led the round and was joined by Commonweal Ventures.

- FullEnrich, a San Francisco and Paris-based contact information aggregator for sales and marketing teams, raised $2 million in seed funding. Flex Capital, M-Fund, Kima Ventures, First Degree, Offord Ventures, and Duro Ventures led the round and were joined by angel investors.

- Swell, a Louisville-based mental health care provider, raised $1.6 million in funding from Keyhorse Capital, Bluegrass Angels, PeakState Ventures, and others.

PRIVATE EQUITY

- Tritium Partners, joined by company executives, invested $115 million in Loxo, an Austin-based talent intelligence and recruitment platform.

- Bishop Street Underwriters, a portfolio company of RedBird Capital Partners, acquired Landmark Underwriting, a London-based managing general agent. Financial terms were not disclosed.

- BS&A Software, backed by Serent Capital, acquired Boyce Systems, a Daleville, Ind.-based financial software provider. Financial terms were not disclosed.

- Fenceworks, a portfolio company of Gemspring Capital, acquired Kansas Fencing, a Topeka, Kan.-based fencing company. Financial terms were not disclosed.

- Kingswood Capital Management led a majority recapitalization of Infotree Global Solutions, a Plymouth, Mich.-based international workforce management solutions provider. The company’s cofounders Raman Sawhney and John McKimmy also participated. Financial terms were not disclosed.

- Planview, backed by TPG Capital and TA Associates, acquired Sciforma, a San Diego-based portfolio management solutions provider. Financial terms were not disclosed.

- Pritzker Private Capital agreed to acquire a majority stake in Americhem, a Cuyahoga Falls, Ohio-based polymer solutions provider. Financial terms were not disclosed.

- Sedgwick, backed by The Carlyle Group and others, acquired the legal spend management division of Bottomline Technologies, a Portsmouth N.H.-based business payments platform. Financial terms were not disclosed. In October, Fortune reported that Bottomline, a Thoma Bravo portfolio company, was seeking a buyer for the legal spend management unit.

- Unanet, backed by JMI Equity and others, acquired Contraqer, an Arlington, Va.-based enterprise resource planning and customer relationship management solutions provider for the government contracting industry. Financial terms were not disclosed.