Israel Emerges as the World Leader in Foodtech
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Israel Emerges as the World Leader in Foodtech

By CIOReview | Friday, September 16, 2022

Israeli startups have raised more money than their counterparts, but the success is currently limited to only a handful of companies.

FREMONT, CA: The alternative protein market demonstrated considerable growth for Israeli food technology, with some of the companies on course to become industry leaders worldwide. Israeli startups raised slightly over one billion shekels (USD 320 million) during the first half of 2022, a rise of 160 percent from the previous year, placing them second only to the United States in terms of investment raising in the sector.

Although the information reaffirms Israel's position as a global leader in food tech, it is important to note that the big sum was raised mostly by a small number of particularly large companies. Israeli companies top the globe in investments in the plant-based protein sector, with USD 166 million. The majority of the investments, or 22 percent of all investments made globally, were made to Redefine Meat. With USD 152 million, Israel ranks second among startups in fermentation.

The most recent report states that USD 431 million, or 70 percent, of the investments made in alternative protein entrepreneurs, went to businesses that drew their inspiration from Hebrew University of Jerusalem research. With eight businesses born from its research, the Hebrew University surpasses all other academic institutions, with none creating more than two. The Technion–Israel Institute of Technology–is in second place with USD 121 million, or nearly 20 percent of such funding, for its two firms.

This is a young and intriguing market that, in addition to earnings, provides an opportunity to right the global food system, drawing scientists and entrepreneurs from many fields.

Israeli alternative protein firms raised USD 623 million in 2021, a 450 percent increase over the USD 114 million they raised in 2020. Additionally, institutional and government investors are keen to boost their interests in the sector. These circumstances encourage venture capitalists to seek funds that are experts in the area.