AgFunder added that once all investment deals from 2020 come to light, it expects the global investment figure to be more than $30bn.
In the US, startups raised $15.45bn in 2020, a 56% year-over-year increase and 30% year-over-yaer rise in number of deals.
Much of the increase in investment came from investors doubling down on their existing portfolio and first wave of agrifoodtech investments. Impossible Foods, for example, completed $500m and $200m rounds last year.
From a high level, OVID-19 highlighted the importance of efficient supply chains and alternative ways of growing, processing, transporting, and selling food to consumers, noted Louisa Burwood-Taylor, editor and head of media & research at AgFunder, in the report.
“Innovations in the midstream – between farmer and retailer – got a much-needed investment boost. Food delivery gained new ground for obvious reasons, especially e-grocery, and we saw more investment activity in Cloud Retail technologies supporting at-home dining,” wrote Burwood-Taylor.
Protein food alternatives also continued to gain investment across the board this year as consumers continue to ask more questions about the origins of their food, she added.
Upstream technologies gain ground
While mega investment deals in finished product brands may have attracted a lot of mainstream attention, upstream (i.e. closer to the farm) startups and companies had a stand-out year in 2020 closing 30% more deals and 50% more investment dollars year-over-year.
According to AgFunder, upstream food startups — which includes companies working in ag biotech, farm management software, farm robotics & equipment bioenergy & biomaterials, novel farming firms — attracted $15.8bn in investment last year, a 68% increase over 2019.