FABID Q2 Report: Food and Beverage Investment Activity

This is the first of our exclusive quarterly food and beverage industry reports from FABID. This report, which focuses on Q2 2024 food and beverage venture activity, features exclusive content created just for our BevNET and Nosh Insider audience! Please note that below is a shortened excerpt of the report. View the full version here.

Key stats and figures from Q2 2024

• Venture funding decreased by 49% quarter–over quarter, driven by fewer late stage investments compared to the first quarter of the year.
• The number of brands receiving venture funding fell to 51, from 54 the period prior. This follows a general trend of less brands raising VC funding.
• Average investment per brand fell, mostly due to the absence of very large rounds. The Top 5 deals in Q2 2024 accounted for $117M or 40.4% of total investment
• Median brand investment fell by $500K as smaller deals took center stage for the first time in quite a while.

The second weakest of the past ten quarters

Despite three consecutive quarters of increasing investment, Q2 saw a marked decline, tempering excitement and confidence in a VC rebound.

Despite smaller deals, bigger brands get more

Even in a quarter lacking large deals, the majority of funding still goes to more established brands.

Deal volumes have fallen for rounds of all sizes

It doesn’t matter if you’re raising less than $1M or more than $50M, the number of deals getting done has generally declined across the board.