Updated: Dec 20, 2020
Agrifood tech is a small but growing segment of Israel’s startup and venture capital world, aiming to change both the food and the agriculture industries.
From 2014 through the end of 2018, Israeli firms operating in the food and agricultural industries raised some $800 million across more than 278 deals, according to data compiled by Start-Up Nation Central and AgFunder.
The Israeli food technology is growing rapidly with approximately 300 companies including meat alternatives, new ingredients, plant-based proteins, restaurant booking, food delivery and more. According to the report, Israeli startups are also starting to lead the way in Innovative Food, particularly cultured meat and novel ingredients, a category that raised $32 million across 17 investments.
In June, a new FoodTech incubator was formed, followed by an eight-month long competitive process by consortium comprised of US-based international agri-food investor Finistere Ventures, Israel-based global investment platform OurCrowd, Israel's largest food manufacturer Tnuva Food Industries Ltd. and Israeli drinks company Tempo Beverages. Together, they will invest up to $100M in Israeli agri-food startups.
Foreign involvement is crucial, as virtually all Israeli startups have international ambition.
Large corporations around the world understand that they must take swift action in order to be part of the sphere of innovation and not miss out on new food technology. Corporations are investing in technological innovation within the company itself and are joining the trend of open innovation trough collaboration with startups in a variety of models. The upcoming Ag-food week is a great opportunity to discuss the right ways for large corporations to invest in food tech startups coming out of Israel.