July 2025 Newsletter
Dear Rethink Food Community,
As we enter the second half of the year, we’re reflecting on how global shifts in capital markets, consumer behavior, and policy are reshaping the future of food and agriculture, as well as where we see the most opportunity for value creation.
THE STATE OF FOOD & AG-TECH: HOW 2025 IS REWRITING THE PLAYBOOK
Global Venture Landscape: Stability with Asterisks
A cautious balancing act in global venture markets has marked the first half of 2025. Global VC fundraising hit $113 billion in Q1, its highest since mid-2022, but that headline figure was skewed by OpenAI’s $40 billion round, which accounted for more than a third of all capital raised. Without that outlier, the data reveals a flat and highly selective environment. Investors are consolidating around later-stage businesses with strong gross margins, capital efficiency, and near-term paths to profitability. Early-stage startups, particularly those outside the AI space, are navigating a significantly more constrained environment. Valuations are under pressure, round sizes are shrinking, and crossover investors have largely pulled back from early-stage participation. Enterprise SaaS, climate tech, and B2B fintech are seeing some signs of rebound, but generalist funds are increasingly focusing on portfolio support and selective follow-on rounds, particularly for companies nearing breakeven. IPOs remain rare, with secondaries emerging as a more viable path to liquidity.
FoodTech: Funding Pullback Meets Consumer Demand
FoodTech has mirrored broader VC trends, with Q1 capital deployed dropping 49.6% quarter-over-quarter to $1.4 billion across 202 deals. Early-stage companies are leaning on bridge rounds and venture debt to extend the runway in a tighter capital climate. Despite these headwinds, consumer demand for health-forward, functional products continues to fuel select growth rounds. Olipop raised $137.9 million to meet rising interest in gut-health sodas, Supergut secured $22 million to scale its metabolic wellness platform, and hiyo closed a $19 million round for its adaptogenic, alcohol-free beverages. The strategic M&A market remains active. PepsiCo’s $1.7 billion acquisition of Poppi illustrates continued demand for high-growth, functional brands. Meanwhile, Wonder acquired Tastemade, and Deliveroo and SevenRooms both had DoorDash exits, signaling an acceleration in platform convergence and vertically integrated consumer ecosystems. AI-native FoodTech firms are also beginning to find their stride. Companies like Liberation Bioindustries and Vivici are applying AI in precision fermentation, product formulation, and inventory optimization. Though still undercapitalized compared to broader AI markets, these startups are well-positioned for long-term growth.
AgTech: A Reset Year with Pockets of Momentum
AgTech remains in reset mode, with Q1 deal volume falling nearly 25% to $1.6 billion across 137 transactions. However, not all verticals are cooling equally. Smart field equipment and robotics grew nearly 50% year-over-year in deal value, driven by adoption of autonomous tractors and precision tools. Rethink Food portfolio company Agtonomy exemplifies this acceleration: since 2024, the company has been running pilot projects with Kubota North America to integrate its IoT-enabled sensors, data platform, and AI-driven camera system into Kubota tractors and sprayers, reducing pesticide use and easing labor demands across specialty crop operations. On June 3, 2025, Kubota North America announced a formal partnership with Agtonomy to commercialize these capabilities across its M5N diesel tractors, with dealer training and customer support already underway to accelerate adoption in vineyards, orchards, and berry farms. Other developments in the sector include Monarch Tractor’s autonomous feed-pushing solution gaining traction among dairy co-ops and solar developers, while major incumbents like John Deere are rapidly scaling their automation strategies. Capital is also beginning to consolidate around more technically differentiated AgTech startups, particularly those with near-term commercialization potential in areas such as biological inputs, carbon mapping, and nutrient-density diagnostics.
Navigating the VUCA Era
The second half of 2025 is likely to be shaped by intensifying VUCA forces – volatility, uncertainty, complexity, & ambiguity. Trade disruptions and renewed tariff regimes are straining supply chains and undermining cross-border investor confidence. RFK Jr.’s MAHA (Make American Biotech Accelerate) agenda, while opening the door to increased domestic biotech investment, is also introducing uncertainty in regulatory review timelines. At the same time, Labor shortages, especially acute in U.S. agriculture, where an estimated 40% of the workforce is undocumented, are accelerating demand for mechanization. and the rollback of ESG and climate mandates is creating friction between sustainability-focused investors and shifting federal priorities. These dynamics are contributing to delayed IPOs, reduced foreign direct investment, and added pressure on innovation pipelines, especially for startups reliant on international ingredients or operating in compliance-heavy sectors. Still, companies aligned with U.S.-based biotech infrastructure and emerging policy priorities may benefit from structural tailwinds. In this new market reality, resilience and strategic alignment matter more than ever.
Outlook: Innovation with Discipline
We’re entering a new chapter where measured, outcome-driven innovation is the clearest path to value creation. With 10 billion people to feed by 2050 using fewer natural resources, companies solving for both scalability and sustainability will lead the next wave of innovation.
NEW INVESTMENTS IN 2025
We participated in FoodHealth’s $7.5M Series A to advance nutrition transparency at scale. The company’s full-stack platform uses AI to verify ingredient sourcing, processing, and health claims in real time. With adoption growing across supply chains, this funding will support expansion into dairy and produce categories in North America and Europe.
In December, we invested in Crisp’s $20 million oversubscribed Series B-2 round led by Wellington. Crisp is building a zero-waste, fully connected global commerce ecosystem by transforming fragmented retail and distributor data into structured insights, earning exclusive access to Walmart’s Illuminate system as one of just eight trusted partners.
PORTFOLIO ANOUNCEMENTS
Phytoform has partnered with ag leader Corteva to enhance disease resistance in corn using its AI-powered gene editing platform, CRE.AI.TIVE™, which makes precise, non-GMO edits to activate native plant traits. This marks Phytoform’s first major corporate deal and a significant step toward commercializing its technology across high-impact crops beyond tomatoes and potatoes.
Brightseed has launched Bio Gut Core, a clinically proven gut health ingredient powered by its AI discovery platform Forager®, which identified two natural bioactives that significantly improve gut barrier function. This is a major step in Brightseed’s expansion into commercial bioactive offerings, bringing an effective, low-dose solution to the $51B digestive health market.
Counter Service opened its first NYC location at 54 W. 14th Street, with more spots coming soon to Flatiron, NoHo, and the Upper East Side. The brand offers bold, quality-driven sandwiches in an open-kitchen format focused on pickup and delivery.
In March 2025, Inevitable Tech announced it would relocate its headquarters from Lockhart to San Marcos, Texas, to support its next phase of growth. The move brings the company closer to key infrastructure and resources essential for scaling operations with David Lee, a former executive at Impossible Foods, at the helm now as CEO.
THE LATEST FROM THE RETHINK FOOD TEAM
Our team has expanded its presence in the industry by participating in a series of conferences, editorials and speaking engagements over the past few months as well as adding a new cohort of summer fellows:
- General Partner, Brad Jakeman, delivered a keynote at the Yale School of Management’s 2025 InsightsOn Conference, highlighting how values, authenticity and cultural relevance are reshaping consumer engagement and brand strategy.
- Brad was also recently featured in the Wall Street Journal, weighing in on the growing risks brands face as platforms scale back content moderation, stressing that ensuring brand safety is about upholding consumer trust, not taking a political stance.
- General Partner, Rini Greenfield, spoke on building a differentiated fund thesis at Carta’s VC Masterclass and joined industry leaders at the Women’s Venture Capital Summit to spotlight investment trends redefining the $10T foodindustry.
- Rini and Rethink Food were named to the Blueprint Capital Advisors Power100, a standout list celebrating visionaries driving bold innovation and meaningful impact across venture, sustainability, and the future of food.
- We’re thrilled to welcome two exceptional fellows to the team this summer:
- Julia Pasek, an MBA candidate at Duke’s Fuqua School of Business, brings experience across impact investing, food systems, and brand operations. Julia previously held roles at Specialized and Chromatic Coffee Roasters.
- Vaneisha Reed, our 2025 Impact Capital Managers Mosaic Fellow and MBA candidate at UC Berkeley Haas, brings experience as both an operator and investor in the food and venture ecosystem. She’s worked with FoodFuture Co and Ideagarden Institute to advance equitable innovation in food and sustainability.
Brad speaking at Yale SOM’s 2025 InsightsOn Conference
Rini named a 2025 Power 100 Asset Manager in Venture Capital
Julia Pasek & Vaneisha Reed
join the team as Summer Fellows
UPCOMING EVENTS
We have two exciting events on the horizon – here’s where you can connect with us!
Climate Week NYC
This September, we’ll be in New York for Climate Week NYC, engaging with leaders driving innovation in climate and foodsystems. Let us know if you’ll be attending – we’d love to connect.
Rethink Food Annual General Meeting
Save the date: our 2025 AGM will take place on October 8th at Cooley LLP. More details to come!
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