The Israeli Food Tech Ecosystem

The land of milk and honey continues to pioneer and innovate in agriculture, food technologies, and science. Israel’s ecosystem is tackling the most critical global challenges—far beyond milk and honey. With more than 600 companies in the agrifood sector, the nation’s determined problem solvers help feed the world’s ever-growing population in healthier, more sustainable ways.  

Q1 2024: The Year So Far

Following an outstanding 2023, Q1 2024 presented a challenging quarter for the Israeli agriculture & food sector. Despite a global macroeconomic slowdown, investor interest remains high, and company roadmap milestones are being met.

• Investment Trends: Although overall investments and average deal sizes hit an all-time low, the number of investments decreased slightly.
• Agriculture Innovations: Autonomous and robotic solutions, along with data-based digital tools, have gained investor confidence, indicating recognized value offerings and product-market fit.
• Food Innovations: Israeli food startups are sprouting groundbreaking advancements in cultivated foods, novel ingredients, and packaging subsectors.

Israeli Agriculture & Food Landscape

• Companies: 637 companies within the sector.
• Hubs: 51 hubs supporting innovation.
• Active Investors: 37 investors actively participating in Q1 2024.
• Investment Rounds: 19 rounds totaling $77M in equity invested.
• Exits: Amounted to $18M in Q1 2024.

Top Investments and Active Investors

Key investments in Q1 2024 highlight the sector’s robust rebound:

• SeeTree: $17.5M Series C
• FreezeM: $14.2M Series A
• WeedOUT: $8.1M Series A

Agrifood Sector Breakdown

When analyzing the emerging subsectors within the agrifood sector and the supporting underlying technologies, we remain confident that the ecosystem is positioned to grow, especially in these growing subcategories.

Food Science: Pioneering New Ingredients and Products

At the forefront of the Israeli agrifood tech landscape, companies use food science to develop new ingredients and products. This multidisciplinary approach brings together scientists, engineers, and culinary experts to create innovative solutions. Israeli startups are pushing the boundaries by introducing unique and previously unavailable products like alternative sugar, cultivated meat, and alternative dairy proteins. These advancements expand the culinary landscape and provide opportunities for sustainable and nutritious alternatives.

Precision Agriculture: Disrupting Agriculture for Improved Efficiency

Precision agriculture solutions are revolutionizing agriculture by leveraging drones, sensors, and farm management software. Israeli agrifood tech companies are at the forefront of this disruption, offering innovative solutions to enhance farming output and quality. Farmers can make informed decisions about crop health, irrigation, and pest control with data-driven insights, ultimately improving yields and resource efficiency. Israel’s unique precision agriculture expertise drives global advancements in sustainable farming practices.

Consumer Tech: Empowering the Modern Food Experience

Consumer tech is reshaping the way individuals interact with food. Israeli startups are developing services and devices that empower consumers to cook, identify the best foods for their dietary goals, and make informed choices. From personalized nutrition apps to consumer taste preferences analytics, these innovations cater to the growing demand for food safety, personal health, and sustainability. Cutting-edge technologies developed by Israeli agrifood tech companies are enabling individuals to take control of their food journey.

Supply Chain Solutions: Digitization and Automation

The food supply chain and retail industry are transforming significantly through digitalization and automation. Israeli agrifood tech startups are developing solutions that optimize the supply chain, reducing inefficiencies and minimizing waste. Data analytics, blockchain, and IoT technologies are enhancing traceability, improving inventory management, and streamlining logistics. These advancements help businesses reduce costs and contribute to a more sustainable and resilient global food system.

Delivery Services: Revolutionizing Grocery and Meal Delivery

In an era of convenience, Israeli agrifood tech startups are disrupting the delivery sector. With services enabling seamless ordering and delivery of groceries and meals, these companies are transforming how people access and consume food. From on-demand grocery delivery to innovative meal-kit solutions, the Israeli agrifood tech ecosystem drives customer-centric approaches that cater to changing consumer preferences and lifestyles while maintaining a low carbon footprint.

“The food problem is multi-dimensional, global climate and natural resources considerations, efficiency, and scale to address the growing population, and consumer preferences and health requirements will shape how we grow and produce food.”

– Alon TurKaspa, Agrifood Sector Lead @Startup Nation Central

Israeli Agrifood Tech is Vital Right Now

The urgency to transform the global food system stems from several factors:

1. Resilient Food Systems: A resilient food system that can withstand conflicts and geopolitical risks is needed.
2. Feeding the Population: The challenge of feeding a growing population of 8 billion while reducing our carbon footprint.
3. Consumer Awareness: Rising consumer awareness about the health, traceability, and safety of food demands industry-wide action.

Consider some alarming numbers: the food system accounts for 30% of global energy consumption and over 25% of greenhouse gas emissions. Furthermore, a staggering one-third of the food we produce is wasted. Addressing these issues is crucial for environmental sustainability, food security, and meeting consumer expectations.

The Israeli agrifood tech ecosystem is at the forefront of this transformation, leveraging data, technology, and innovation to tackle these challenges head-on. By focusing on key areas such as food science, agritech, consumer tech, supply chain solutions, and delivery services, Israel is shaping the future of food and making significant contributions to a more sustainable, efficient, and resilient global food system.

“Israel’s agrifood tech ecosystem takes a wide view and covers many subsectors and disciplines. This attracts global food and beverage corporations, and we are often amazed at the interest in our startups. These big companies are seeking impact-driven investments that solve pressing gaps or challenges, which means there is a lot of opportunity for the local tech industry.”

– Alon TurKaspa, AgriFood Tech Sector Lead @Startup Nation Central

Dive into Israeli Agrifood Tech with Startup Nation Central

Israel is a trailblazer in Agrifood Tech. Having been forced to innovate to overcome unfavorable agricultural conditions, it is today home to the second-largest ecosystem in the world, made up of more than 400 companies.

At Startup Nation Central, our Agrifood Tech experts forge connections and support collaboration between global organizations and Israel’s problem solvers to feed the world’s ever-growing population in healthier and more sustainable ways.

Together, we can advance sustainable, long-term solutions that improve and optimize the entire food chain and contribute to a better future.