FoodTech has many donors worldwide, Europe is traditionally lagging behind other important markets. However, in recent years, European investors have started to see the potential for the niche market and have regularly made thrusts. The current pandemic has really changed our way of leading our daily life. With the inability to go out and eat in our favorite restaurants, we were forced to stay at home and order much more to take away. This could be one of the main reasons why Foodtech startups have managed to remain strong during the difficult year of 2020, investments in the sector reaching their previous 2.7 billion euros in 2019, according to A Digitalfoodlab report.
Despite the pandemic, the total amount invested in FoodTech Startups worldwide has increased sharply. Consequently, the share of the European food ecosystem fell only 12%.
A third wave of European Foodttech startups increases, which is characterized by two key characteristics: they get up more at a very early stage (even before having a product) and bet on long -term trends.
Three generations of foodtech
According to the DigitalFoodLab report, FoodTech startups can be divided into three different generations:
Gen 1: Oriented towards delivery
Gen 2: Daily food restaurant and delivery
Gen 3: Future of Foods (food automation, meat alternatives, dark stores, etc.)
Two new food unicorns


During the pandemic, two companies stood out higher than any other. British startup Gousto, a meal kit company, reached the 1B coveted mark after a financing cycle, making it one of the two unicorns of the year.
The second unicorn of 2020 was Oatly, a Swedish startup developing dairy alternatives, reaching an even higher evaluation of almost 2B.
Another company, Karma Kitchen, a kitchen rental start-up, has managed to obtain the largest funding series among Foodtech companies, acquiring 291 million euros.
Increased faith in Foodtech
2020 saw a much stronger faith in foodtech startups, investors, investors supported these promising companies at a development stage much earlier, in series A.


Innovation hubs
FoodTech exploded in five main parts of Europe – the United Kingdom, France, the Nordics, the Dach and Benelux region. These regions attracted 94% of all Faodetch investments made in Europe.


Challenges that Europe is faced with
Although not at the top of the race, European Foodtech startups have managed to make waves with their new and innovative ideas. However, there is a big obstacle that they must overcome in order to compete internationally. Startups must be able to extend their products beyond the borders of their country. Although some have already achieved this feat, it is far from the same level as startups outside of Europe.
This could change in the future. With larger companies, such as Nestlé, investing in startups, emerging companies can obtain the pressure necessary to bring their businesses to the next level.