Global demand for seafood is growing rapidly, but how well are aquatic food tech startups funded?

Global demand for seafood will grow rapidly in the coming years, and some predict this will continue to do so more than double by 2050 as populations grow and trade changes, and as protein becomes more available to more consumers. Meeting this demand will require many different approaches, especially those that can provide on-demand supplies without further burdening already depleted fish stocks and damaging marine ecosystems. A combination of wild fish and seafood, aquaculture activities, and plant- and crop-based analogues could significantly increase global protein supply.

However, in the first half of 2024, investment in aquatic food technology startups – technologies for wildlife fisheries, aquaculture and seafood alternatives – only reached $150 million across 18 deals, a 40% reduction in investment compared to first half of 2023

While it may be too early to declare 2024 a worse year and may not seem newsworthy given the overall bearish venture capital market in the agri-food tech industry and beyond, it is worth noting that aquatic food tech has fallen last year significantly outperformed most agri-food tech categories, raising nearly $500 million, or about 17% more than in 2020. The level of aquatic food tech funding was even more impressive in 2022, when startups in this categories collected $1 billion in 2022, which is as much as 136% more than in 2020.

Aquatic foodtech refers to technologies targeting all industries and processes involved in the supply chain of water-grown or water-grown food and its alternatives. This includes catching and farming fish, seafood, crustaceans and algae, as well as new foods that replicate these categories through plant-based, cultured or fermented alternatives.

2020 is largely seen as an important comparison year; a year before venture capital valuations go wild and hit record fever in 2021, this is seen as a reversion to the mean. Many commentators believe that if funding levels remain at the same level as in 2020, the picture is not too bleak.

10 years of aquatic food technology in numbers

• $3.6 billion total funding raised by aquatic food tech startups since 2014 across 730 deals
• 1.63% global agri-food financing for aquatic food technologies over the last decade
• $1 billion financing raised by water tech startups in 2022 across 99 deals
• 500 million dollars collected by start-ups in the industry in 2023, which means a decrease of 50% compared to the previous year
• 74 capital rounds raised in 2023

The aquatic food technology market is growing, especially fish farming: global fisheries and aquaculture production increased to 223.2 million tonnes, an increase of 4.4% compared to 2020, according to the 2024 release. State of the World Fisheries and Aquaculture (SOFIA). According to this report, which calls the industry the “blue transformation”, 2022 was the first year in history that aquaculture overtook fishing as the main producer of aquatic animals. Global aquaculture production in 2022 reached an unprecedented level of 130.9 million tons, of which 94.4 million tons were aquatic animals, accounting for 51% of total aquatic animal production.

A wide range of technologies are contributing to this “blue transformation”, operating across several AgFunder agri-food technology categories and operating primarily upstream in the supply chain, away from the consumer.

Novel Farming Systems startups focusing on aquatic food, including technologically advanced aquaculture cultivation systems, it has raised $1.3 billion in 197 deals over the past 10 years.

The second most funded aquatic food technology category is Innovative Food, which has raised $689 million across 136 deals since 2014. Agricultural robotics, mechanization and other farm equipment startups raised $413 million across 27 aquatic food technology deals over the same period, while Ag Marketplaces and Fintech raised $389 million across 54 deals, Ag Biotechnology raised $289 million across 91 Deals and Farm Management Software, Sensing & IoT raised $251 million across 114 deals.

To better understand the range of technologies and innovations involved in transforming the future of aquatic food technology, lSo let’s take a look at some of the latest offerings in each of the categories above

Innovative agricultural systems

LAXEY is an Icelandic salmon farming company specializing in sustainable land-based aquaculture, building a land-based farm on the Westman Islands with the goal of producing 32,000 tonnes of Atlantic salmon per year. The company raised $42.5 million in April and $6.5 million in July 2024, in two late-stage rounds that totaled $49 million.

Agriloops is a French start-up that promises to reinvent aquaculture to produce environmentally friendly, healthier and tastier products by designing a saltwater aquaponics farm. The company raised $14 million in a Series A round in February 2024.

The Aquaculture Research Corporation specializes in aquaculture research and innovation, pioneering solutions to coastal challenges and educating shellfish farmers. Founded in 1960 and headquartered in Dennis, Massachusetts, it operates as a quahog and oyster wholesaler throughout the United States. In January 2024, the company raised $1.2 million through a seed deal.

Innovative food

BlueNalu is an American cellular aquaculture company committed to satisfying the world’s appetite for seafood in a fresh and humane way, offering consumers seafood products that support ocean sustainability and diversity. The startup raised $33.5 million in a Stage B funding round in October 2023.

based in Israel Wanda Fish Technologies is a seafood cell culture startup offering cultured fish fillets by growing fat and muscle cells in a bioreactor using animal-free media. The startup raised $7 million in October 2023 in a seed round.

Conscious eating is a Canadian company offering a range of plant-based seafood for restaurants, catering companies, cafes and other commercial kitchens. The August 2023 seed round raised $19.6 million.

Robotics and mechanization of farms

Fishing is an Indonesian aquaculture technology start-up that creates solutions to help fish and shrimp farmers develop their businesses sustainably. The company raised $30 million in May 2024 in debt financing, after raising $200 million in two Series D transactions in 2023.

Poseidon’s ocean systems is a Canadian company engaged in the design, development, supply and installation of aquaculture infrastructure. In March 2024, $20.7 million was raised in a Series B round.

Remora Robotics is a Norwegian technology company specializing in aquaculture robotics. The August 2023 seed round raised $2.8 million.

Agribusiness and Fintech markets

Captain Fresh is an Indian B2B freshwater fish and seafood supply chain platform that leverages technology to deliver rapid harvesting and retailing solutions. The company focuses on aggregating fragmented retail demand across the country and connecting it to small-scale fishermen and farmers across the Indian coast. It raised a $25 million C round in January 2024, after raising another $20 million C round in 2023.

Juhudi Kilimo in a Kenyan company providing asset finance, technical assistance and business training services to smallholder farmers and small and medium-sized agricultural enterprises. It offers financing for farm animals and fish farming equipment. In January 2024, the Nairobi-based company raised $4.7 million through debt financing.

Seaqua is a Bangladesh-based company that offers financing for small-scale fishing and aquaculture and uses technology to improve product traceability. In January 2024, it raised $600,000 in seed capital.

Farm management software, sensors and IoT

Meu Pescado is a Brazilian agrotech company that has developed a platform for managing fish and shrimp farming, enabling real-time monitoring of work. In July 2024, the company entered into a seed contract worth $364,400.

Minnowtech is a Baltimore-based aquaculture technology company that has developed an imaging software platform that enables shrimp farmers to non-invasively and precisely estimate shrimp abundance. The US startup raised an undisclosed A round in February 2024.

AquaExchange is an Indian IoT-based aquaculture technology platform for shrimp and fish farming, using technology to increase aquaculture efficiency, reduce crop hazards and help farmers reduce costs. In January 2024, a Series A round raised $6 million.

Ag Biotechnology

Sundew is a Danish biotechnology company providing biological services in the field of aquatic pest and disease control. The company raised an undisclosed amount in a Series B round in April 2024.

ViAqua therapy is an Israeli company that develops drugs and therapeutics for aquaculture. It raised $83 million in a Series A round in September 2023.

Gas infusion systems is a Canadian company developing aquaculture applications that use an oxygen delivery system to improve fish health throughout their life cycle. In June 2023, the A round raised $1.8 million.

Further reading:

Data Snapshot: From Insect Farming and Vertical Farming to Aquaculture… Top 20 Novel Farming Systems Deals in 2023

Entobel opens Asia’s largest insect protein plant focused on aquaculture

Aquaconnect raises $15 million to digitize India’s aquaculture supply chain for smallholder farmers

“Our oceans face a grave threat…” Alt Seafood Startups Unite to Form New Industry Association: Future Ocean Foods