Tesi, Finland’s state-owned investment company, has conducted the first-ever comprehensive study spotlighting Finland’s thriving FoodTech sector. This pioneering analysis offers a deep dive into the funding environment, company landscape, and investor dynamics within the Finnish FoodTech ecosystem.
Tesi’s study aims to provide an extensive overview of Finland’s FoodTech landscape, focusing on company diversity, funding trends (specifically venture capital and growth equity), and an exploration of investor activities within the sector. Inspired by renowned reports from industry experts like DigitalFoodLab and Forward Fooding, this research focuses solely on Finland’s FoodTech domain, filling a critical gap in the existing analyses.
Key Observations
The Finnish FoodTech realm boasts a diverse array of companies spanning various products, technologies, and business models across the food value chain. The landscape is predominantly characterized by AgTech and Next-Gen Food categories, encompassing agricultural solutions, plant-based products, and cellular agriculture.
While the funding in FoodTech surged notably between 2019 and 2022, largely propelled by significant investments in companies like Wolt and Relex Solutions, it’s crucial to note that these entities accounted for a substantial 84% of the total funding between 2015 and 2022. Excluding these two giants, the overall funding amounted to around €270 million.
Despite the dominance of Wolt and Relex Solutions, other companies have witnessed a rise in larger funding rounds since 2020, contributing to the increased funding landscape. However, H1/2023 exhibited a decline in funding, attributed in part to the challenging macro and funding environment affecting multiple industries.
FoodTech Categories and Funding Breakdown
Analyzing the funding per category, AgTech and Next-Gen Food emerge as the primary recipients of investments, constituting approximately 80% of the total funding (€270 million) between 2015 and 2022, excluding Wolt and Relex Solutions.
Funding rounds predominantly fall below €10 million, but the growth in larger funding rounds (+€10 million) since 2019 accounted for around 70% of the total funding during that period, excluding Wolt and Relex Solutions. Notably, significant funding rounds surpassing €50 million are primarily associated with Wolt and Relex Solutions.
Investor Landscape and Innovation Ecosystem
The Finnish FoodTech sector witnesses diverse investor activity, including Finnish VCs, international investors, and established Finnish food corporations engaging in new food technologies via funding and M&A activities. While international VC presence is less pronounced, their involvement, particularly in AgTech and Next-Gen Food categories, has been notable.
Finland’s rich innovation ecosystem comprises various research centers, universities, and incubators dedicated to food innovation. Entities like VTT and Viikki Food Design Factory Germinator Program play pivotal roles in research, commercialization, and nurturing startups contributing to the food value chain.
As Finland’s FoodTech scene continues to evolve and innovate, Tesi aims to collaborate with industry stakeholders to create a more comprehensive, up-to-date, and inclusive public listing of companies, fostering continued growth and innovation in the sector.
The Tesi report not only sheds light on the current state of Finland’s FoodTech landscape but also serves as a beacon guiding future endeavors and collaborations within this burgeoning industry.
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Read the orginal article: https://arcticstartup.com/tesi-finlands-foodtech-study-2023/
