Top 10 Food Tech Startups Innovating the F&B Industry
The food tech industry is undergoing a transformative phase driven by technological advancements, changing consumer preferences, and a growing awareness of sustainability.
Current industry trends include the rise of plant-based and lab-grown meats, personalized nutrition, food waste reduction, artificial intelligence, and blockchain for food safety and traceability. These trends are reshaping how food is produced, processed, and consumed.
Even in developing countries like India, these food delivery companies are noticing tremendous growth in their consumer base. VC investment in the food tech sector also saw a surge in recent years, per Crunchbase.
Despite the progress, several challenges remain. Plant-based and lab-grown meats must match traditional meat’s taste and texture to gain widespread acceptance.
Personalized nutrition requires extensive data collection and analysis to provide accurate dietary recommendations. Similarly, ensuring food safety and traceability through AI and blockchain requires significant investment and technological integration across the supply chain.
To tackle these challenges, startups are developing advanced food processing technologies, utilizing biotechnological methods to create sustainable food products, and employing AI and machine learning to enhance food safety and supply chain efficiency.
The advanced technologies and solutions of these startups will improve the efficiency and accuracy of food processing, ensuring better quality and safety. These innovations will help create a more sustainable, efficient, and consumer-centric food system.
In this article, we’ll discuss 10 Food tech startups that are innovating the Food and beverage Industry and the solutions they offer.
While this article discusses 10 food tech startups, our Food Tech Startup report explores multiple startups within insect-based proteins, plant-based meat alternatives, and more!
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1. Hempeat — Meat Alternatives Developed from Hemp
| Founding Year | 2021 |
| Headquarter | Dolnoslaskie, Poland |
| Total Funding Amount | $284.9 K |
| Last Funding Round/Amount | Seed round/$210 K |
| Website | https://www.hempeat.pl/ |
According to the Water Footprint Network, it takes over 15,000 liters of water to produce just 1kg of beef. Startups like Hempeat are drastically reducing this resource consumption using their plant-based meats.
Founded in 2021, Hempeat is a food-tech startup that makes plant-based meat alternatives from hemp. The CEO, Jacek Kramarz, has an extensive history with hemp companies, such as the European Industrial Hemp Association and HemPoland. He’s also the executive VP of Green Lanes Investment Management company.
The advantage of hemp is that it consumes 400 times less water and produces 24 times fewer carbon emissions than beef. Furthermore, Hemp seeds require less irrigation than most crops and do not require pesticides. Hemp helps regenerate and improve soils and can thrive in warmer temperatures and climates, making it highly adaptable to climate change.
Hemp-based meat alternatives have near-authentic textures with a familiar fibrous consistency, making them highly desirable.
Hempeat has raised $284.9K over two funding rounds. It is still in the seed stage and ideal for an innovation partnership or acquisition.
2. ProFuse Technology — Same Muscle Tissues, More Protein
| Founding Year | 2021 |
| Headquarter | Kiryat Shmona, Israel |
| Total Funding Amount | $3.8 Million |
| Last Funding Round/Amount | Seed round/$2.5 Million |
| Website | profuse-tech.com |
ProFuse Technology is an Israeli startup founded in 2021. It operates as a muscle cultivation expert, developing products for muscle tissue growth for the cultivated meat and life science sectors.
The startup’s innovation enhances the protein content of muscle tissue by five times that of traditional meat, resulting in a more protein-rich alternative.
Under the guidance of its CTO, Tamar, a stem cell biology muscle specialist, the startup aims to boost yield and expedite production cycles. Additionally, its processes enable the growth of mature muscle tissue and significantly reduce overall production costs for the alternate meats industry.
Its co-founder, Dr. Tamar Eigler-Hirsh, characterized the molecular signaling pathway, which is the basis of ProFuse Technology. Her research focuses on muscle development and regeneration of muscle progenitor cells.
ProFuse Technology has raised $3.8M in funding over two rounds. Siddhi Capital and OurCrowd are among its lead investors.
3. Planetary — Uninterrupted Supply of Meat and Dairy Alternatives
| Founding Year | 2022 |
| Headquarter | Geneva, Switzerland |
| Total Funding Amount | $11.7 Million |
| Last Funding Round/Amount | Convertible note/$3.99 Million |
| Website | http://www.planetarygroup.ch/ |
Founded in Switzerland in 2022, Planetary addresses a significant challenge in this industry: the fermentation bottleneck.
Many companies in the alternative protein space are in the technology or product development phase, but scaling it remains challenging.
Planetary builds and operates a global network of fermentation facilities to produce bio-based products at scale. This platform can scale up, optimize, and produce products with optimal cost and sustainability footprint. These fermenters can produce between 200,000 liters and 500,000 liters of product.
CEO David Brandes and CSO Marison Ian are co-founders of this startup. David has experience working in marketing and sales roles with companies like Procter & Gamble, VICE Media, and McKinsey & Company. He also co-founded and ran a similar successful venture (Peace of Meat) as Co-CEO for 2.7 years, which was acquired for €15 million.
Planetary raised its latest funding of CHF 3.5 million from a Seed round (Convertible Note) on April 19, 2022. Astanor Ventures is the only lead investor (previous seed round) among five investors backing this startup.
4. Urban Farmers Pro — 170x More Efficiency than Traditional Farming
| Founding Year | 2021 |
| Headquarter | Distrito Especial, Colombia |
| Total Funding Amount | $225 K |
| Last Funding Round/Amount | Pre-Seed/$120 K |
| Website | www.urbanfarmerspro.com |
Agriculture is the highest resource-consuming activity in Latin America, with 74% of total water withdrawal. Urban Farmers Pro claims to reduce agricultural water extraction and consumption by 95% and enable people to grow fresh food anywhere.
The Latin-American-based AgTech start-up provides vertical indoor farming solutions using smart hydroponics. Its growing systems/vertical farms are 170x more efficient than traditional farming, use 95% less water, and require minimal space. Urban Farmers Pro achieved this with a circular irrigation system that uses 100% potable, doubly filtered water.
The startup’s founder, Klaus Hergett, graduated from Harvard Extension School, where he studied eco-entrepreneurship. He also holds a Master of Science (MS) in Master in International Marketing (MIM) from Hult International Business School.
Klaus founded a fintech startup, Centz Colombia, and worked as a Team lead with Booking.com. Besides leading Urban Farmers Pro, Klaus is an investor in DRUO and has been working with HubSpot (Team Lead and senior GS) for the last 4+ years.
Urban Farmers Pro has raised $225K in funding, with the latest funding of $120K from a pre-seed round on Oct 1, 2022.
5. BetterMeal AI — Find The Best Food Suited to Tackle Diseases
| Founding Year | 2020 |
| Headquarter | California, United States |
| Total Funding Amount | $110 K |
| Last Funding Round/Amount | Seed/Publicly Not Disclosed |
| Website | www.bettermeal.ai |
BetterMeal AI works to understand the biological connections between the human gut and food. It helps create personalized nutrition programs that can be built and delivered efficiently and cost-effectively.
The startup’s AI technology identifies foods that work specifically on a molecular level for your gut and heal issues like Thyroid disease and type 2 Diabetes.
Its founder and CEO, Swathi Arulguppe Nagendra, has a Master’s in Engineering/Industrial Management from Syracuse University.
BetterMeal AI raised $100K in funding over two rounds, the latest on November 29, 2022.
6. Divaks — Harnessing Protein Out of Mealworm
| Founding Year | 2020 |
| Headquarter | Vilnius, Lithuania |
| Total Funding Amount | €4.5 Million |
| Last Funding Round/Amount | Seed round/€1.5 Million |
| Website | www.divaks.com |
Divaks is a food-tech startup that develops insect protein solutions for the food industry. It uses the yellow mealworm (Tenebrio molitor) as a source of protein. The insects are bred and reared using unique diets to influence the nutritional values of the final products.
The startup is working on establishing an industrial-scale yellow mealworm plant in collaboration with the Buhler Group. This focus on a specific insect and the development of a vertically integrated business model allows them to provide high-quality, sustainable, and traceable insect protein products.
Divaks has signed a Novel Food licensing agreement with Protix, an insect industry pioneer. This license covers frozen or dried yellow mealworms and dried yellow mealworm powder.
The CEO, Kęstutis Lipnickas, is a BMI Executive Institute graduate with over a decade of startup management experience.
Divaks raised €1.5 Million in its latest seed funding round on Feb 14, 2023.
7. Ambrosia Bio — Reducing Sugar with Enzymes
| Founding Year | 2020 |
| Headquarter | HaMerkaz, Israel |
| Total Funding Amount | $130 K |
| Last Funding Round/Amount | Seed Round/$130 K |
| Website | www.ambrosia.bio |
Ambrosia Bio developed a proprietary enzyme-based biotechnological platform to convert obesity-promoting sugars into minimal-calorie rare sugars.
The startup’s technology provides a biochemical and structural analysis of designed proteins, reducing dietary sugar content and allowing customers to purchase healthier food products.
Its B2B business model provides leading sugar & juice manufacturers the opportunity to meet customer expectations of sugar reduction through enzymes without affecting the consumption experience.
The CEO, Ziv Zwighaft, has expertise in molecular biology and holds a Ph.D. in biochemistry from the Weizmann Institute of Science.
Ambrosia Bio raised its latest Seed funding of $130K on Mar 18, 2022.
8. Biopols — Using Fungal Chitosan for Making Organic Food Coverings
| Founding Year | 2022 |
| Headquarter | Ankara, Turkey |
| Total Funding Amount | $65.5 K |
| Last Funding Round/Amount | Grant/€25 K |
| Website | https://biopols.co/ |
A significant percentage of food loss occurs due to spoilage from factors like mold, compounded by the environmental impact of traditional plastic packaging with massive waste and pollution issues. Globally, around 1.3 billion tonnes of food is wasted annually, while about 250,000 tonnes of plastic waste end up in the oceans, exacerbating the environmental crisis.
To counter these challenges, Biopols has innovated a natural antibacterial and antioxidant food coating and packaging solution derived from fungal chitosan. This material is sourced from food waste, making the solution doubly beneficial by reducing food waste at the production stage and creating sustainable packaging materials.
Biopols’s products include food coatings and packaging materials/packs that extend the shelf life of perishable products. These products are completely biodegradable and designed to replace harmful plastic packaging.
Unlike conventional food packaging options, the coatings are easily washed off with water, ensuring convenience and safety for consumers. They do not contain any petrochemical raw materials. Biopols’ innovation promises to save approximately 3,000 tonnes of fruits and vegetables from being wasted annually by next year.
Sena Tarım Yalçınkaya is the founder and CEO of Biopols. She also founded another startup called Citrona. Yalçınkaya holds an MS in Chemistry from Middle East Technical University.
Biopols received a grant of €25K on Nov 7, 2023.
9. TraceX Technologies — Leverages Blockchain to Improve Supply Chain
| Founding Year | 2019 |
| Headquarters | Karnataka, India |
| Total Funding Amount | $1 Million |
| Last Funding Round/Amount | Non-equity Assistance/Publicly Not Disclosed |
| Website | tracextech.com |
TraceX Technologies uses blockchain technology to manage food supply chains for better traceability.
It offers pre-harvest and post-harvest solutions, namely Trace Gro and Trace Pro. Its solutions help with crop and plot management, production planning, input and inventory management, and more. Its platform further manages post-harvest processes such as the supply chain.
Srivatsa Sreenivasarao is the founder and CEO of this startup. He graduated from the Indian Institute of Management with 10+ years of startup experience.
TraceX Technologies has raised a total of $1M in funding, the latest of which was raised on June 20, 2023 (Publicly Not Disclosed Amount). PETRONAS FutureTech was the lead investor for this round.
10. VFC — Chicken Meat Alternatives from Wheat
| Founding Year | 2020 |
| Headquarters | North Yorkshire, United Kingdom |
| Total Funding Amount | £16 Million |
| Last Funding Round/Amount | Seed round/£6 Million |
| Website | vfcfoods.com |
Fast food giants like KFC are often criticized for the high caloric content, saturated fats, and sodium levels in their foods, which contribute to obesity, heart disease, and high blood pressure. Ethically, KFC has faced scrutiny over animal welfare practices, including concerns about the treatment of chickens in their supply chain.
VFC, also known as Vegan Fried Chicken, hopes to change that.
The startup, launched in December 2020 by Matthew Glover and Adam Lyons in the UK, specializes in vegan fried chicken products made from wheat protein and has seen rapid expansion.
VFC is part of the Vegan Food Group and has been recognized by PETA for its vegan chicken. Matthew Glover, one of the startup’s founders, is also the managing director of Veg Capital, an investment firm.
The founders envisioned creating a business that merges food with activism, particularly as a protest against factory chicken farming from companies like KFC.
VFC raised its latest seed funding of £6 million from Veg Capital on April 20, 2023. Veg Capital is the lead investor for this startup’s three funding rounds (out of four). The startup acquired Clive’s Purely Plants in Oct 2023 and Tofutown on Mar 10, 2024.
Conclusion
According to Emergen Research, the global market is expected to reach $342 billion by 2027, with a 6% CAGR. An increase in emerging tech utilization in food processing techniques, innovation in robotics and data technology, and rising awareness of health and wellness among the prime audience are the key opportunities for growth in this sector.
With such opportunities, the chances of startup growth are high in food tech. In some cases, such as online food delivery, we have seen startups getting an edge over big companies that also provide delivery services.
But it is too soon to say. With their multidirectional cash flow and rapid acquisitions, companies like Amazon and Walmart can soon be bigger players in this sector.
We have already discussed various areas where Food-tech startups are innovating, such as Nutraceuticals and the Plant-based food Industry. It will be exciting to see how the future of food-tech startups will turn out and how it will further change consumer behavior.
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Edited By: Naveen Kumar, Marketing
