In the first 11 months of 2023, one in 10 venture capital rounds in Italy concerns the food and agriculture sector, for a total of 28 transactions (out of 257) and 95.7 million euros invested in Italian startups in the sector. The north is the driving force, with 20 rounds and 86 million euros raised, and attracting more than half of the capital (49.6 million) are startups operating in the vertical farming sector. There were also 7 million investments related to the alternative protein vertical, i.e. proteins that are alternatives to meat and of vegetable origin. This is what emerges from an analysis by Growth Capital that takes a snapshot of one of the most important and interesting sectors for VC in Italy, considering data between January and November 2023. “Looking at Italian venture capital in 2023, it emerges that one in ten investment rounds is related to the food and agriculture sector. The number of rounds completed this year in the sector is in line with that of 2022 (29) and in general with the historical average (25) from 2018 to date, highlighting the constant interest despite the market turbulence,” Andrea Casati, vice president of Growth Capital, said in a statement. The decline in the amount invested, which stood at €148.3 million in 2022, is attributable to the general trends observed in the ecosystem, i.e. a shortage of late-stage rounds and an increase in pre-seed rounds”.
Investments
Most of the investments in the food and agriculture sector in Italy are concentrated in Northern Italy, where there are 20 rounds (of which 4 in the North West and 6 in the North East), for a total of 86 million euros (of which 75.3 million in the North West and 10.7 million in the North East). This is followed by the South, with 4 rounds closed during the year and €6.3 million raised, compared to €2.5 million in 2022. Central Italy, on the other hand, with 4 rounds, collects 3.4 million, down compared to 2022 (8.7 million). Looking at the individual sectors, food retail stands out in first place for the number of closed rounds (8, i.e. 28% of the total), followed by vertical farming and alternative protein, with 4 rounds each. As for the amount invested, on the other hand, it is vertical farming that wins the scepter, with 49.6 million euros, up 65% compared to 2022. In second place are food retail rounds, for a total of €16.4 million (compared to €3.7 million in 2022), while in third place are cloud and ghost kitchens with €13 million, compared to €7.9 million in 2022. Outside the podium, the 7 million euros invested in protein alternatives, which in 2022 had not garnered any kind of interest. As emerges from Growth Capital’s analysis, the most important funding in the sector during 2023 was obtained by Planet Farms, a company in the controlled environment agriculture sector, which in November made a new capital injection of 36.7 million euros that will support the company’s expansion in Italy and the United Kingdom. This is followed by Soul-K, an Italian company operating in the b2b sector and a pioneer in innovation in the food industry, which closed a round of 20.5 million euros, including equity (13 million) and bank financing (7.5 million): CDP Venture Capital, LIFTT, Simest, Al.Ma Food, Azimut, Levante Capital and Innogest underwrote the capital increase, while the bank loan was granted by BancaTer in collaboration with Fondo Frie. Third place went to the Milanese brand of fresh pasta restaurants MiScusi, which closed a total round of 10 million euros with a transaction in which MIP, Picus Capital, Kitchen Fund, Amundi, Gama and Wellness Holding participated. In fourth place is Kilometro Verde, a startup owned by entrepreneur Giuseppe Battagliola, which received 6 million euros from Ismea for the creation of an innovative vertical farming plant. Closing the ranking of the top five investments in food and agriculture in 2023 are two startups tied: Agricooltur, operating in the field of aeroponic cultivation, has completed a series A investment round of 5 million euros with lead investor Sinergia Venture Fund. The same figure also for Dreamfarm: the Parma-based startup, which has patented a process for the creation of the first plant-based alternative to mozzarella in preserving liquid, has received 5 million euros from the two entrepreneurs Giampaolo Cagnin, founder of Italia Ingredients, Campu and Hi-Food, and Francesco Mutti, CEO of the Mutti group. (Photo by Henry Be on Unsplash)
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