Food tech venture funding pulls back

Venture funding in the food tech industry in Q1 of this year dropped 41% from Q4 of 2021, according to PitchBook data.

Why it matters: “This reversal may be the first step in a larger market recalibration, which many expected given the unsustainable surge in VC funding in 2021 and public market volatility in Q1 2022,” PitchBook says.

• Still, it may be too early to tell as many of the deals were completed before the markets roiled, PitchBook says in a report.

Details: In Q1, about $6.9 billion of venture capital was funneled into 359 food tech fundraising deals, it says.

Of note: Within the sector, home-delivered food is regaining popularity.

• Several VCs put their money into meal kits delivered to customers’ homes. The growth in investment dollars comes despite supply chain challenges and grocery inflation.